VPP value proposition expands to affordability, reliability and resilience

Utilities are leaning more on "virtual power plants," or VPPs, which link up home batteries, EV chargers, smart thermostats and other devices so a utility can dial demand up or down when needed. Experts speaking at an industry webinar said these programs are being pitched not just as grid reliability tools but as ways to hold down electricity costs for everyone, since shifting demand away from expensive peak periods can reduce costs that get passed on to ratepayers.

If you have a home battery, an electric vehicle, or a smart thermostat, this is the kind of program you might be offered enrollment in. Experts said the programs that attract the most participants tend to offer steady, predictable payments, use accurate metering to track what your device actually contributed, and let people opt out without a penalty. Some utilities pay more if you agree to let them dispatch your battery or EV charging more often, including at different times of day, such as weekend evenings.

Examples cited include National Grid's ConnectedSolutions+ program in Massachusetts, which pays participants extra for more flexible dispatch, and Xcel Energy's Active VPP program in Colorado, which is trying to sign up a set amount of battery capacity each year. Vehicle-to-grid technology, which lets an EV send power back to the grid rather than just draw it, was mentioned as a growing area utilities want to expand. Program details and payments vary by utility and state, so it's worth checking what your own utility currently offers.