Sunrun: Residential VPPs for data centers are nearing reality

Data centers need huge amounts of power fast, and some tech companies are now looking at home solar and battery systems as a way to get it. Solar installer Sunrun says it is in active talks with large tech companies ("hyperscalers") about subsidizing home battery and solar installations near data centers. The idea: instead of building their own power plants, these companies would pay to equip nearby homes with batteries, then draw on that stored power when needed. This approach, which Sunrun calls "capacity as a solution," is being developed alongside Tesla and Everyday Electric (formerly Renew Home), with a combined goal of offering 16 gigawatts of capacity to data center operators and utilities.

A related pilot is already running in the San Jose, California area, where Pacific Gas & Electric is testing a similar setup funded by Google, using about 21,000 existing home battery and solar systems from Sunrun, Tesla, and Everyday Electric. Google says that power won't go to any of its own data centers, even as one of its planned facilities in the area has drawn local criticism over rising electricity costs.

For now, there are no specific deals, locations, or payment details for homeowners. Sunrun's executives say regulatory rules still need to catch up before utilities can formally count home batteries as reliable backup power, which is slowing things down in some regions. Still, the company expects the model to spread within the next year if tech companies keep pushing it. If it takes hold in your area, it could eventually mean subsidized solar or battery offers tied to a nearby data center's power needs.