In the sweltering heat of this summer, Sunrun's CalReady Virtual Power Plant (VPP) emerged as a savior for California's power grid. On consecutive evenings from July 9 to July 12, batteries from more than 16,000 Sunrun customers responded to the increased demand in energy, dispatching power during peak hours and highlighting the importance of renewable energy solutions in contemporary times.

The Power of Solar + Storage

Sunrun's initiative harnessed the capability of customer-owned solar + storage systems to an impressive extent. Each night, an average of 48 MW was infused into the grid, equating to the power needs of 48,000 homes - imagine a city the size of Santa Monica. At its zenith, it soared to 51 MW, surpassing the capacity of several traditional and pollutive gas-powered peaker plants.

Unseen Benefits for the Community

"We are so grateful," remarked Mary Powell, CEO of Sunrun, "that we can not only provide customers with a greater sense of energy independence, resilience, and affordability but that those same systems can support our communities." As the grid faces strain from summer heat, Sunrun customers are swelling energy supplies, cutting costs for Californians, and aiding in the prevention of rolling blackouts.

The Mechanics of CalReady

Wondering how it works? Let’s dive into the details of this cutting-edge tech.

Largest Single-Owner VPP

Sunrun’s CalReady holds the mantle of being the largest single-owner VPP involved in the state's Demand Side Grid Support program, managed by the California Energy Commission. Available daily from 4 to 9 p.m. through October, it stands ready during the periods of highest demand and vulnerability to outages.

Customer Participation and Compensation

By participating in CalReady, Sunrun customers are compensated for sharing their stored solar energy, and Sunrun itself receives payment for battery dispatches. The system not only offers financial benefits to participants but also universal advantages to the broader grid infrastructure.

How Homes With “Virtual Power Plant Programs” are Different Than Home With Solar and Storage Under NEM 3.0:

Who has all the control?

Homeowners with a "virtual power plant" like Sunrun's CalReady have their solar panels and batteries integrated into a network that can dispatch stored energy to the grid during peak demand times, and they are compensated for sharing this energy.

In comparison, homeowners who don’t choose a Virtual Power Plant Program but have solar panels and battery storage under NEM 2.0 or NEM 3.0 use their systems to power their homes whenever they choose. They don't join a VPP, so they don't send extra energy to the grid during busy times unless they choose to. Instead, they retain the power for their own home and use to reduce their electricity expenses.

What Best For Homeowners Seeking Control Over Their Energy Costs?

From a homeowner's perspective, the biggest distinction between a VPP program and a NEM 3.0 program in terms of control over energy and storage is that in a VPP program, the aggregator manages the energy dispatch from their solar and battery systems to the grid during peak demand times. 

In contrast, under NEM 3.0, homeowners independently control their solar and battery systems to power their homes without actively dispatching energy to the grid during peak times. 

Regarding utility savings, VPP participants receive compensation for sharing their stored energy with the grid during peak times, while under NEM 3.0, homeowners receive lower compensation rates for excess energy sent back to the grid compared to NEM 2.0.

The main distinction lies in the active grid assistance and payments for those involved in a VPP and weather the system is controlled by the homeowner or CalReady Network.

Scaling Up Solar Power: The Path Forward

Enhancing Grid Reliability

The recent deployment of the CalReady VPP exemplifies not just a technological leap but a paradigm shift towards a more resilient and efficient power framework.

Moving Beyond Traditional Energy Solutions

Gone are the days when fossil-fueled peaker plants were the sole backup. With solar-powered batteries providing a clean, reliable alternative, the grid becomes less susceptible to failures and environmental disruptions.

Community and Environmental Benefits

Not only does the adoption of such systems reduce the risk of blackouts, but it also translates to a significant reduction in carbon footprints, promoting a healthier ecosystem.

The Role of Homeowners in the Solar Movement

Empowering Individuals

Solar energy isn't just a solution provided by giants like Sunru, Everbright, Lightreach and other TPO and EPC’s – it's a collective movement involving everyday homeowners who choose to live sustainably.

Benefits to Solar + Storage Systems

Owners of solar + storage systems enjoy multiple perks:

• Energy independence: Reduced reliance on the grid.

• Cost savings: Lower energy bills due to efficient energy management.

• Support during outages: Backup power for essential needs.

A Bright Future with Solar and Storage

Technological Advancements

Continuous innovation in the solar sector ensures that solutions keep getting better, efficient, and more user-friendly.

Cutting-Edge Storage

With high-capacity batteries becoming more affordable and advanced, the future holds great potential for even greater contributions from solar-powered homes.

Expanding Participation

Encouraging more homeowners to adopt solar + storage systems can massively amplify the positive impacts, driving us towards a cleaner and more reliable energy future.

Overcoming Challenges

Adapting to Climate Extremes

In times when climate change exacerbates weather extremes, robust solutions like CalReady are vital in mitigating potential disasters.

Proactive Measures

Deploying proactive measures over reactive responses ensures:

1. Grid stability

2. Controlled costs

3. Environmental protection

Ensuring Resilience

Investing in resilience today ensures:

• Reliable energy supply

• Environmental sustainability

• Economic stability

See What Program Is Best For Your Home

In conclusion, both opting into a VPP program and utilizing a NEM 3.0 solar + storage system offer homeowners effective paths to reducing their energy costs. By participating in a VPP, homeowners can significantly lower their expenses through financial compensation earned by sharing their stored solar energy during peak demand times, while also contributing to grid stability. On the other hand, homeowners under NEM 3.0 can manage their energy usage more efficiently by leveraging their solar and storage systems to power their homes, albeit without the added compensation from grid dispatch. Ultimately, both options provide increased control over energy consumption and costs, empowering homeowners to make more informed and strategic energy decisions.

FAQs

1. What is a Virtual Power Plant (VPP)?

A VPP is a network of decentralized power generating units, such as solar panels and batteries, that work together to provide energy to the grid.

2. What control do homeowners have over their energy usage with NEM 3.0 systems compared to VPP programs?

• Homeowners with NEM 3.0 systems have more control over their energy consumption and production, whereas VPP program participants rely on an aggregator to manage energy dispatch.

3. How do the compensation rates differ between NEM 3.0 and VPP programs?

• NEM 3.0 systems offer lower rates for excess energy sent back to the grid compared to NEM 2.0, while VPP programs provide compensation specifically for dispatching stored solar energy during peak times.

4. Why might some homeowners prefer managing their own energy systems over participating in a VPP program?

• Homeowners may prefer NEM 3.0 systems as they can independently manage their energy usage and not rely on a third-party aggregator, which gives them greater control and potentially fewer service interruptions.

5. What are the risks associated with participating in a VPP program like Sunrun's CalReady?

• VPP program participants risk potential maintenance and technical issues with the aggregator, which could impact the reliability of energy dispatch, whereas NEM 3.0 homeowners maintain more control over their systems.

6. Do NEM 3.0 systems offer additional revenue streams for energy dispatch during peak times like VPP programs?

• No, NEM 3.0 systems do not offer additional revenue streams for dispatching energy during peak times; this is a unique benefit provided by VPP programs.

7. How does Sunrun's CalReady VPP contribute to the grid?

• By dispatching stored solar energy during peak demand times, the CalReady VPP reduces strain on the grid and prevents blackouts.

8. Can homeowners benefit financially by participating in CalReady?

• Yes, homeowners receive compensation for sharing their stored solar energy and enjoy lower energy costs.

9. Why is solar + storage important for the future?

• Solar + storage provides clean, reliable energy, reduces dependence on fossil fuels, and offers resilience against outages and price spikes.

10. What makes CalReady unique?

• CalReady is the largest single-owner VPP in California, providing significant support to the grid through a large network of customer-owned systems.