How Virtual Power Plants (VPPs) can change your energy bills
What happened
- A Virtual Power Plant (VPP) is a collection of household devices (like smart thermostats, EV chargers, and home batteries) that a utility company can control.
- Utilities use VPPs to command these devices to draw less electricity during peak hours, helping manage demand.
- In exchange for participation, utilities offer participants discounts on energy bills or signing bonuses.
- VPP programs have grown significantly; as of 2023, there were over 500 VPP programs in the US alone.
- An estimated 4 million households with smart thermostats were enrolled in a VPP program last year.
Why it matters for me
VPPs can lead to significant savings. While throttling power in one home is small, when scaled up across hundreds of thousands or millions of homes, the impact is profound, similar to firing up a power plant. Home battery and EV programs could offer annual savings of hundreds or thousands of dollars.
What to remember
- Check if your utility company offers a program and ensure your devices are supported.
- Understand that data collected (like smart thermostat usage) can reveal personal routines, so review the opt-out rules carefully regarding privacy.
- Decide based on your flexibility: assess how much control you have over your energy use and what compensation you receive.
Source: Original article
Source: www.technologyreview.com