Why is Google funding PG&E’s latest VPP pilot?

Pacific Gas & Electric is starting a new pilot program in the San Jose area called SHARE, and the unusual part is who's paying for it: Google, not ratepayers or the state. The program will link about 21,000 home devices already in use — batteries, smart thermostats, and rooftop solar systems from Tesla, Sunrun, and Renew Home — into a combined 12 megawatts of capacity that PG&E can draw on when the grid is under strain. Later, Rewiring America and Carrier plan to add hundreds of home heating and cooling systems to the mix. Google is covering customer incentives and has said it will offer subsidies of up to $10,000 toward new battery-backed heat pump systems for homeowners who join.

Google's interest likely ties to its data centers. Research has suggested that home energy upgrades like heat pumps, solar, and batteries could free up significant grid capacity nationwide — potentially enough to help meet the rising power demand from data centers. By funding household upgrades directly, Google may be trying to unlock some of that capacity rather than build new power plants. A related industry estimate found this kind of arrangement could save participating households thousands of dollars on average.

For PG&E, the pilot is also framed as a way to ease pressure on electricity rates, which are already the highest in the lower 48 states. Enrollment is expected to start this fall, and the program will run through 2027 before PG&E decides whether to expand it. If you're in the San Jose area with a battery, smart thermostat, or heat pump already tied to one of these companies' systems, this is the kind of program that could eventually reach your home, though details on eligibility and rollout are still being worked out.