Virtual Power Plant (VPP)
A network of distributed energy resources (solar, batteries, EVs, smart appliances) coordinated by a central platform to provide grid services collectively, functioning like a power plant.
Why It Matters
VPP programs pay battery owners $200-$750/year for allowing their batteries to be dispatched during grid emergencies. You keep backup protection; the utility gets flexible capacity.
Related Topics
Related Terms
Demand Response
A program where utilities pay customers to reduce electricity usage during peak demand events, often by cycling AC units, adjusting thermostats, or discharging batteries to the grid.
Battery Storage
A system that stores excess solar energy for use when the sun isn't shining, providing backup power during outages.
Grid-Tied System
A solar energy system connected to the utility grid, allowing you to draw power when needed and export excess generation.