Sunrun and New York utility embark on residential virtual power plant

In coordination with Orange and Rockland Utilities, the VPP program makes 300 solar-plus-storage systems available for grid stability.

October 23, 2024 Michael Puttré

Sunrun solar customers receive free or discounted batteries for participating in the program.

Image: Sunrun

California-based clean energy developer Sunrun has activated a residential solar virtual power plant (VPP) program in New York’s Orange and Rockland Utilities (O&R) service area that features more than 300 solar-plus-storage installations.

Under this program, Sunrun coordinates with the utility to discharge stored energy in participating batteries to the electric grid during periods of peak demand. The systems also serve as sources of backup power to the homes of participating customers, who receive a free or discounted home battery in exchange for participating in the 10-year program.

The Sunrun-managed power plant was initiated by O&R and approved as a demonstration project by the New York State Public Service Commission. Sunrun receives revenue from O&R based on the installed base of battery storage.

“This is an important step toward the future of fortifying New York’s energy grid, utilizing innovation to build a more affordable and reliable way to deliver power.,” said Mary Powell, CEO of Sunrun, in a statement. “We are excited to see residents of New York benefit from the sharing of stored solar power.”

A VPP is a virtual aggregation of small-scale, distributed energy resources (DERs) including PV, energy storage, electric vehicle chargers, and demand-responsive devices such as water heaters, thermostats and appliances. VPP technology has shown immediate promise in replacing natural gas peaker plants on grids, offering additional capacity during times of peak electricity demand.

The VPP program is designed to reduce strain on the grid and provide power to local communities to help prevent power emergencies. Customers in the program agree to enroll their battery-stored electricity in an energy dispatch schedule and are compensated for participation.

“The creation of this virtual power plant unlocks incredible benefits to the electric grid that will provide our customers with the clean and reliable energy that they expect and deserve,” said Andre Wellington, O&R director of distributed resource integration, in a statement. “Home solar-plus-storage is an innovative, flexible resource that can be called upon during times of stress on our electric system.”

Sunrun is no stranger to setting up VPPs. In August the company announce the launch of a partnership with Tesla to support the Texas power grid. More than 150 Sunrun customers have enrolled in a virtual power plant (VPP) program to be compensated for dispatching electricity from their batteries to the grid when power is needed most. Additionally, during prolonged power outages in the aftermath of Hurricane Beryl, more than 1,600 Sunrun customers in the greater Houston area were able to keep their homes energized with more than 70,000 hours of backup energy provided by their solar-plus-storage systems.

Over the last decade, the U.S. has spent more than $120 billion on 100 GW of new generation capacity, mainly for resource adequacy. A study by Boston-based consultancy Brattle Group estimates utilities could save $35 billion by 2033 by focusing on VPPs for peak demand capacity.

“By deploying grid assets more efficiently, an aggregation of distributed resources lowers the cost of power for everybody, especially VPP participants,” said Jigar Shah, the director of the U.S. Department of Energy (DOE) Loans Programs Office.

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