How to sign up for a virtual power plant—and decide whether you should
MIT Technology Review’s How To series helps you get things done. Your thermostat may not look like a power plant. Neither does your electric vehicle, home battery, or HVAC system. But utility and energy companies increasingly want to treat them like one. A virtual power plant, or VPP, is a collection of household devices (such…
The How To guide explains how to enroll in virtual power plant (VPP) programs and assess their potential benefits. These programs control household devices like smart thermostats, EV chargers, home batteries, and solar panels to reduce electricity demand during peak hours. In return, utilities offer discounts on energy bills and potential signing bonuses.
To join a VPP, first check if your utility supports your devices, which can be found on their website or through device manufacturers. Enrollment often involves simple steps like app clicks or filling out a utility form. However, eligibility criteria can vary greatly, requiring approved Wi-Fi thermostats, specific automakers, charger types, battery brands, or inverter compatibility.
Before signing up, consider your flexibility to allow remote device adjustments. Some households may not have the flexibility to accommodate utility changes, particularly those with night shifts, caregiving responsibilities, or strict energy-saving habits. Additionally, review opt-out rules and fine print, as utilities may sometimes overestimate electricity usage and pay participants for unused energy, potentially increasing bills for nonparticipants.
Despite these challenges, VPP programs can offer significant savings and grid benefits, especially as more households with smart devices join. California, Texas, New England, and other regions with high flexible device counts and supportive policies are leading the way.
Written by urgent.news from MIT Technology Review's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
