PG&E, Sunrun team up to launch new virtual power plant from solar energy
Pacific Gas and Electric Company (PG&E) has teamed up with Sunrun to launch a new program for residential solar and battery systems.
The new Energy Efficiency Summer Reliability Program will use residential solar and battery systems to create a virtual power plant capable of discharging 30 megawatts of clean energy back to the grid. This will lower the overall cost of power during the times of highest need and reduce the critical strain on the entire energy system.
The virtual power plant works by storing renewable energy produced by rooftop solar panels during the day across a large number of homes, then sharing that energy back to the grid during peak times.
“Home batteries and virtual power plants are valuable resources for supporting grid reliability and an essential part of California’s clean energy future,” Patti Poppe, CEO of PG&E Corp., said. “PG&E is making great strides ensuring the grid is ready to partner with a diversity of energy providers. In collaboration with Sunrun, our Energy Efficiency Summer Reliability Program will serve as a unique resource that will positively contribute to our state’s electric grid and complement a host of actions PG&E is taking to provide greater energy resilience to our customers and hometowns.”
Sunrun, a solar energy provider, will enroll up to 7,500 residential home solar and battery systems in PG&E’s service area into the program. Enrolled battery systems will be directed to discharge every day from 7 p.m. to 9 p.m. during the months of August through October, a time when energy needs are highest in California. In exchange, customers will receive an upfront payment of $750 and a free smart thermostat for participating.
“There’s no denying climate events are becoming more severe, and power outages are more frequent and prolonged as a result,” Mary Powell, CEO of Sunrun, said. “Consumers want energy security and peace of mind, and by integrating more reliable clean energy resources into the grid through this innovative program, we can deliver that with PG&E. This forward-looking partnership strengthens our emergency preparedness and puts the customer at the center of the energy system.”
The new Sunrun Virtual Power Plant (VPP) is part of a suite of programs and solutions that PG&E has implemented to decrease energy demand and increase energy supply. The VPP was approved by the California Public Utilities Commission (CPUC) on Jan. 30. Sunrun will soon begin enrolling customers into the program and start dispatches on Aug. 1.
