Catch up on stories from the past week (and beyond) at the Slashdot story archive

 



Forgot your password?
typodupeerror
Power United States

Virtual Power Plants: Where Home Batteries are Saving Americans from Blackouts (msn.com) 123

Puerto Rico expects 93 different power outages this summer, reports the Washington Post.

But they also note that "roughly 1 in 10 Puerto Rican homes now have a battery and solar array for backup power" which have also "become a crucial source of backup power for the entire island grid." A network of 69,000 home batteries can generate as much electricity as a small natural gas turbine during an emergency, temporarily covering about 2 percent of the island's energy needs when things go wrong... "It has very, very certainly prevented more widespread outages," said Daniel Haughton, [transmission and distribution planning director for Puerto Rico's grid operator]. "In the instances that we had to [cut power], it was for a much shorter duration: A four-hour outage became a one- or two-hour outage."

Puerto Rico's experience offers a glimpse into the future for the rest of the United States, where batteries are starting to play a big role in keeping the lights on. Authorities in Texas, California and New England have credited home batteries with preventing blackouts during summer energy crunches. As power grids across the country groan under the increasing strain of new data centers, factories and EVs, batteries offer a way for homeowners to protect themselves — and all of their neighbors — from the threat of outages. Batteries have been booming in the U.S. since 2022, when Congress created generous installation tax credits for homeowners and power companies.

Home batteries generally come as an option alongside rooftop solar panels, according to Christopher Rauscher, head of grid services and electrification for Sunrun, a company that installs both. More than 70 percent of the people who hire Sunrun to put up solar panels also get a battery. With the tax credits — and the money saved on rising electricity costs — solar panels and batteries make financial sense for most American homes, according to a study Stanford University scientists published Aug. 1. About 60 percent of homes would save money in the long run with solar panels and batteries...

Those batteries can have broader benefits, too. Utilities pay customers hundreds of dollars a year to sign their batteries up to form "virtual power plants," which send electricity to the grid whenever power plants can't keep up with demand. California's network of home batteries can now add 535 megawatts of electricity in an emergency — about half as much energy as a nuclear power plant... [H]omeowners can make thousands of dollars a year lowering their energy bills, selling solar power back to the grid or enrolling their batteries in a virtual power plant, depending on their power company's policies and state regulations. "Over time, you would get the full payback for your system and basically get your backup for free," said Ram Rajagopal, an associate professor of civil and environmental engineering who co-authored the Stanford study.

This discussion has been archived. No new comments can be posted.

Virtual Power Plants: Where Home Batteries are Saving Americans from Blackouts

Comments Filter:
  • by MpVpRb ( 1423381 ) on Saturday August 16, 2025 @12:47PM (#65594090)

    Problem is, investor owned utilities pay little to nothing for using the battery power and charge customers a lot for the power
    We need a fair payment system with the customer being in control of how and when their batteries are being used

    • You need an open standard for communication with the batteries and an electricity reserve market which allows the agglomerated storage to participate.

      That said, larger players will soon drop the value of battery storage on the reserve market through the floor through economy of scale.

      • larger players will soon drop the value of battery storage on the reserve market through the floor through economy of scale.

        Wouldn't that be a win for everyone?

    • We already have that. There is no requirement that end users tie their solar or batteries to the grid, and even with grid-tied systems, they can be disconnected.

      I have solar that is grid-tied. PG&E pays me for the electricity I feed back into the grid. I can turn that off by flipping a switch.

      Of course, they pay me less than they charge me for the power I pull, but that is reasonable. Grocery stores do the same: the farmers are paid less than what the grocery stores charge customers.

      • by dgatwood ( 11270 ) on Saturday August 16, 2025 @02:16PM (#65594318) Homepage Journal

        Of course, they pay me less than they charge me for the power I pull, but that is reasonable. Grocery stores do the same: the farmers are paid less than what the grocery stores charge customers.

        It is reasonable up to a point. PG&E takes it way beyond that point, though, IMO, paying between 2 and 8 cents per kWh, while charging 37 to 63 cents per kWh for power consumed.

        It is pretty clear that PG&E only pays you anything for excess solar because they were forced to do so by California Assembly Bill 920, and that if they could get away with it, the compensation would be zero.

        With regulated utilities like this, they should be required to pay homeowners a rate that is close to what the average amount of money they would spend to buy the power from other providers, which is quite a lot higher than what they actually pay.

        Actually, no, not even that. They should be required to treat it as a negative count towards the number of units of power for that time-of-use tier, e.g. each 1 kWh sent back counts as a credit for 0.95 kWh at the time it was sent to the grid. And if any TOU tier is negative, that entire negative tier cost should be credited towards your account, including the distribution portion, because (realistically speaking) that tiny amount of power that you generate is not being distributed beyond your neighborhood, unlike power generated by separate generating companies far away.

        It just isn't reasonable to bill rooftop solar and separate solar farms similarly. Rooftop solar power reduces strain on the grid when it is active, because the generation is distributed. It should therefore count strongly negatively towards the distribution portion of your power costs, not provide zero credit.

        • by AmiMoJo ( 196126 )

          People will buy more batteries so they can store and use the energy themselves.

          They are going to end up making it cost effective to simply leave the grid entirely, or set up a community micro grid to replace it.

          • They are going to end up making it cost effective to simply leave the grid entirely, or set up a community micro grid to replace it.

            They already have that one figured out. It's illegal in much of California. You are required to connect your house to the grid.

      • Just delivering some power to save on gas is not very valuable, having high availability reserve power available on demand is where the money is.

    • Problem is, investor owned utilities pay little to nothing for using the battery power and charge customers a lot for the power

      Not really, no. Last night PGE was paying a premium over the buy price for my battery surplus being sold back into the grid.

    • We need a fair payment system with the customer being in control of how and when their batteries are being used

      I don't know where you live, but here in California he have exactly that.

      • by dgatwood ( 11270 ) on Saturday August 16, 2025 @02:22PM (#65594328) Homepage Journal

        We need a fair payment system with the customer being in control of how and when their batteries are being used

        I don't know where you live, but here in California he have exactly that.

        Does it actually cover the wear and tear on the batteries? Have you calculated it? Because I did, and they're paying for only about 64 minutes per day [slashdot.org] at current battery costs, assuming the actual power distribution and replenishment comes out price-neutral for the homeowner. Meanwhile, their big test of the system ran for two hours. If that becomes normal, then it's anything but a fair payment system, unless they're paying a *huge* premium per kWh on top of that.

        It's PG&E, so you can generally assume that nothing they do is done in a way that actually benefits the consumer. :-)

        • Your calculations are naive. I have done them too, but I don't have time to go step by step to explain it to you. A key thing you're missing is that the Powerwall has a finite lifetime in years, and for some reason you assume 4k cycles results in a non-functioning battery. You further misquote the cost. In California, I'm seeing a net cost of $7,500 when installed with solar, which is how most people acquire these. You need a better understanding of the subject to properly analyze it. Disclaimer: I worked i
          • by dgatwood ( 11270 )

            Your calculations are naive. I have done them too, but I don't have time to go step by step to explain it to you. A key thing you're missing is that the Powerwall has a finite lifetime in years,

            Nope. Not for LiFePO4 batteries (PowerWall 3). They exhibit minimal degradation from long-term storage for an entire decade [sciencedirect.com].

            and for some reason you assume 4k cycles results in a non-functioning battery.

            The general consensus is that at the 80% mark, you should not continue using the cell, for several reasons:

            • The capacity loss often accelerates beyond that point.
            • Capacity loss can be indicative of dendrite growth [batterypoweronline.com], which can lead to catastrophic failures (read "fires").

            But sure, if you want to take that risk, go for it. Nobody is stopping you.

            You further misquote the cost. In California, I'm seeing a net cost of $7,500 when installed with solar, which is how most people acquire these. You need a better understanding of the subject to properly analyze it. Disclaimer: I worked in the electric utility industry and had to do these kinds of analyses for a living.

            Nope. The true cost of wear on a PowerWa

            • The battery is going to be cycled once a day no matter what, which works out to about 11 years for your 4k cycle estimate ... at which point simple aging would put a limit on the battery's longevity anyway whether you used it or not. Your naive calculations neglect this and treat all cycles as equal. Furthermore, you didn't have to estimate anything because Tesla warranties the batteries for 37.8MWh of throughput for applications like this. That amounts to 2,800 full cycles, which would indicate a badly des
              • by dgatwood ( 11270 )

                The battery is going to be cycled once a day no matter what

                That's not really a safe assumption. Yes, it can be cheaper to buy power at night and use it during the day, but it only makes sense to do that if the cost of the power at the peak is higher than the cost of power at the bottom plus the cost of wear on the system. At 28.52 cents per kWh of wear plus 38 cents per kWh, it only makes sense to do that if the cost of power is at least 66.52 cents per kWh. The maximum price for power from PG&E under a residential TOU plan is only 62 cents per kWh. Therefo

                • JFC, you could look this stuff up. The Tesla warranty on Powerwalls is unlimited use for ten years when used in typical domestic solar/arbitrage/backup applications and for 37.8MHw throughput when used with VPPs or the like. Throughput wear and tear is irrelevant in the former application, you could have saved some arithmetic.

                  Powerwall 3 includes the previously separate (and separately priced) solar charge inverter and backup gateway, which simplifies installation & complexity. They are not directly
                  • by dgatwood ( 11270 )

                    JFC, you could look this stuff up. The Tesla warranty on Powerwalls is unlimited use for ten years when used in typical domestic solar/arbitrage/backup applications and for 37.8MHw throughput when used with VPPs or the like. Throughput wear and tear is irrelevant in the former application, you could have saved some arithmetic.

                    Interesting. My understanding was that it did not cover arbitrage. However, you're misreading that warranty policy in a rather critical way:

                    "Any application not listed above, or any combination of applications that includes one not listed above".

                    That means as soon as you enable any use that falls outside the scope, including time shifting for use by the grid operator, your warranty becomes 37.8MWh. It doesn't matter if 99% of your use was covered by the first policy. As soon as you use start using it for VPP, you no longer have 10 years of unlimited wear and tear.

                    Powerwall 3 includes the previously separate (and separately priced) solar charge inverter and backup gateway, which simplifies installation & complexity. They are not directly comparable with Powerwall 2s ... which you would know if you understood the subject and did a little research.

                    Yes, it makes installation simpler, but if y

                    • However, you're misreading that warranty policy in a rather critical way:

                      Only if you refuse to read what I wrote. You went to a lot of trouble to triumphantly repeat what I said.

                      Yes, it makes installation simpler, but if you don't need the inverter, you're still paying for it.

                      Don't need the inverter? I guess you could run all your household appliances off DC--or try if you don't know how anything works. I'm on my third inverter in seven years, they get worked pretty hard and are considered wear items. (You could look this up ... [thepowerfacts.com])

                      An ideal system would *NOT* have all of that in a single unit. The battery would be one unit, the controller/inverter/brains would be one unit, and would be sized for the number of panels and the number of batteries.

                      It's sized for the battery, and that's the point. As for installers lashing together a bunch of shit onsite ... have you seen the work a lot of peopl

                    • by dgatwood ( 11270 )

                      However, you're misreading that warranty policy in a rather critical way:

                      Only if you refuse to read what I wrote. You went to a lot of trouble to triumphantly repeat what I said.

                      Gah. No, I misremembered what I had written, and you didn't quote what you were responding to, so I misinterpreted what you wrote.

                      Yes, it makes installation simpler, but if you don't need the inverter, you're still paying for it.

                      Don't need the inverter? I guess you could run all your household appliances off DC--or try if you don't know how anything works.

                      In context, I assumed my meaning was clear. I was talking about the situation where you already own the inverter, but are forced to replace it anyway because you're replacing the whole unit. But also, if you have multiple Powerwalls, you could use a single inverter that takes power from all three rather than multiple inverters.

                      I'm on my third inverter in seven years, they get worked pretty hard and are considered wear items. (You could look this up ... [thepowerfacts.com])

                      Are these Powerwall inverters you're talking about

  • Suckers game (Score:5, Insightful)

    by VampireByte ( 447578 ) on Saturday August 16, 2025 @12:51PM (#65594096) Homepage

    In an attempt to be isolated from outages, Individual households will spend large amounts of money installing solar and batteries, but the utilities will take over those household batteries whenever they want to supply power to stupid AI datacenters.

    • In an attempt to be isolated from outages, Individual households will spend large amounts of money installing solar and batteries, but the utilities will take over those household batteries whenever they want to supply power to stupid AI datacenters.

      Exactly! When PG&E pays for the batteries and installs them at their cost, then they can have access to them.

      • PG&E pays a large premium for that power, do you know nothing at all about the subject? See others on this thread who participate in these programs.
        • Excuse me! Excuse me! This person was OUTRAGED on the internet. How dare you attempt to add facts or reasoning into the situation! Its obvious that PG&E will force them into putting the battery on the wall and then use it any time they want at gunpoint! And even if it's not true, it _could_ be true because they imagined it, so that's just as good!

        • Re:Suckers game (Score:4, Informative)

          by VertosCay ( 7266594 ) on Saturday August 16, 2025 @08:53PM (#65594836)

          PG&E pays a large premium for that power, do you know nothing at all about the subject? See others on this thread who participate in these programs.

          "The Tesla and PG&E ELRP will compensate you $2.00 for every additional kWh that your Powerwall delivers during an event beyond typical behavior. As of 2024, there will be a minimum of seven events each year. Typically, customers can earn up to $20 per Powerwall per event. If the California grid has a significant number of emergencies, however, there could be as many as 60 hours of events. This can result in customers earning between $200 and $600 per Powerwall, depending on the number of emergency events during the summer. Other factors, including your Powerwall’s energy capacity and charge behavior, play a role into your total compensation."

          Hardly a large premium for a 5-10k instillation. At the stated rate it should only take ~50 years for ROI. Sign me up!

          • So maybe two thirds the net cost of the Powerwall is covered by VPPs, which makes the rest of your arbitraged power cost 1/4 of what it would have cost. I worked out a return of around 11% compounded annually without VPPs, assuming full utilization. That's amazing, I'll take that every time. If I got $5k from VPP use over the lifetime (10 years) of the Powerwall, that goes to an astounding 24.5%/year, according to my HP-12C.

            If only you knew how anything, like math, worked.
            • If only you were old enough to know how the real world works, you would realize the the world rarely concerns itself with your HP-12C of which you seem strangely proud. There is no way PG&E would continue a program where they are not making ever increasing profits. They're history with solar instillations proves that and like that example, home owners will be left feeling a bit screwed. I get that you are trying to justify (at least to yourself) your purchase, don't expect the rest of us to follow suit

              • Old enough? I'm retiring early, kiddo, but not all that early. My paleolithic HP-12C reference was a joke that was obviously wasted on the humorless.

                I don't own a battery, there's another stupid assumption.

                You still haven't figured out there/their/they're and you think you can figure out electric utility issues? I, on the other hand, worked in the electric utility industry and was paid a lot of money to analyze tariffs, load profiles, and a bunch of other stuff you manifestly don't understand.
                • "I, on the other hand, worked in the electric utility industry"

                  That says it all right there. I'm through talking to an industry shill.

                  • According to your previous arguments, I'm arguing forcefully against what you said was my own interest ... and now that makes me a "shill"?

                    Have you had any severe head injuries recently?
      • Fuck PG&E with 208V 3-phase. Camp Fire 2018 and weeks of "PSPS" blackouts in 2019-2020.
    • In an attempt to be isolated from outages,

      Are they not being isolated from outages? Besides, being part of the Virtual Power Plant (VPP) is voluntary, you can always quit.

      Individual households will spend large amounts of money installing solar and batteries,

      True and per TFS "About 60 percent of homes would save money in the long run with solar panels and batteries."

      the utilities will take over those household batteries whenever they want to supply power to stupid AI datacenters.

      No. The whole VPP scheme is a stopgap measure for energy generation. This means merely stabilizes the grid load while other power plants come online to meet the electrical demand. Also note that excessive utilization of the distributive capabilities will no doubt place a g

    • Only if the battery owner agrees to it. You don't have to set up your battery to be capable of feeding power back onto the grid. The primary benefit to the battery owner is that they can charge it on off-peak hours and then be safe in the event of a brownout or blackout during peak hours.

    • Re: (Score:3, Interesting)

      by Smidge204 ( 605297 )

      You DO realize that participation in virtual powerplant operation is opt-in, right? And that you typically get paid quite well for the power you provide (which didn't cost you anything to produce because sunlight is free).

      If you have access to a VPP program it's a pretty good way to accelerate the payback of the installation costs.
      =Smidge=

    • Yes that's fine, they can pay for it. 100% of VPP participation is in the hands of the person who owns the battery. Don't like the fee you are getting paid, don't participate.

  • "A network of 69,000 home batteries can generate as much electricity as a small natural gas turbine during an emergency..."

    No they can't, batteries cannot generate electricity at all.

    • Re: (Score:3, Informative)

      by davidwr ( 791652 )

      "A network of 69,000 home batteries can generate as much electricity as a small natural gas turbine during an emergency..."

      No they can't, batteries cannot generate electricity at all.

      You are technically correct, the best kind of correct.

      That said, I assume that the person meant to say "A network of 69,000 fully charged home batteries can provide to the grid as much electricity as a small natural gas turbine during a fairly short emergency."

      In other words, until the batteries run out, they can provide the same power (and, for a fixed period of time, the same energy) to the grid as a small natural gas turbine.

      • You're both wrong, per Merriam-Webster. See definition 2 below and consider how batteries work:

        generate /jn-rt/ [Slashdot can't cope with special characters in 2025, lol]
        transitive verb

        1: To bring into being; give rise to. "generate a discussion."
        2: To produce as a result of a chemical or physical process. "generate heat."
        3: To engender (offspring); procreate.
        4: To form (a geometric figure) by describing a curve or surface.
        5: To produce (a program) by instructing a computer to follow given parameters with a skeleton program.
        6: In generative grammar, to construct (a sentence, for example) through the successive application of linguistic operations, rules, and conditions.
        7: To beget; to procreate; to propagate; to produce (a being similar to the parent); to engender. "every animal generates its own species"

        Similar: beget procreate propagate engender To cause to be; to bring into life.

    • This predictable pedantry accompanies every single discussion of batteries on /.

      Batteries can serve as a source of energy to feed into the grid in times of need. In a practical sense, for the purposes of this discussion, they are an energy source.

    • No they can't, batteries cannot generate electricity at all.

      Of course they can, it's one of the only two things they do.

      Non-rechargeable batteries do one thing: generate electricity from chemical reactions.

      Rechargeable batteries do two things: generate electricity from chemical reactions and consume electricity to drive chemical reactions from a lower energy energy state to higher energy state.

      Are you maybe confusing batteries with capacitors? You might be correct in saying that capacitors cannot generate electricity since they simply allow electrons to move around

  • by laughingskeptic ( 1004414 ) on Saturday August 16, 2025 @01:53PM (#65594234)
    In Texas, a relatively small capacity equivalent to around 100 PowerWalls is sufficient after a lot of paperwork to become a wholesale power generation company. Then you can charge 30X normal rates for the power you contribute to the grid during Texas' routinely declared power emergencies. Get the whole neighborhood in on it under an LLC or non-profit charter and profit rather than being exploited. Or set it up as a MUD which can help make your neighborhood harder to annex if you are in a neighborhood under threat of annexation. And for neighborhoods that already have a MUD and a place to put a bunch of batteries, it makes much more sense to do this at neighborhood scale since the ROI is so much higher.
    • Considering the massive benefits of battery peakers, they could be a screaming bargain. 30X sounds higher than the price cap, though.

      the missing information is what is being paid to gas peakers running on spinning reserve during these spikes. It's been quite a while since I worked in the ERCOT market, so I'm out of touch. But I recall the horrors of unhedged positions and market rates well enough to know that even with price caps it could be brutal.
    • Sounds like a good project for an HMO.

  • In my experience, those that install home batteries install enough capacity to run their home, or a subset of its load, for a period of hours. Perhaps over night. The idea is that the panels stop generating and you have the battery to carry you overnight, maybe.

    But, in this case we're talking about outages, so your home will be on solar and battery only. Yet, you'll have enough to let the grid pull from your battery? How does that work? In a hour or two your batteries are dead and you're out of power like t

    • It depends on your agreement, but generally the utility will never fully discharge your battery or come anywhere close to it, and you will know in advance approximately when they will enable discharging (e.g. "for a period of up to one hour some time in the next two weeks").

      Also it should go without saying, but if there actually is a blackout condition the utility is not going to be drawing power from your home batteries...
      =Smidge=

  • I wonder where (a large % of) the solar panels come from, and why their prices are being driven down.

  • Texas power grid is the worst power gird inside the U.S. Puerto Rico has suffered from a lot of corruption taking $$ meant for power grids. Also hurricanes deal a blow yearly to them, it would be best to bury all their power lines....
    • Austin-ERCOT's was definitely shite 2021, let me tell you what. Refrigerator and indoor air temp eventually equalized at 54 F and I had the contents of my fridge on the balcony where it was 11 F. And no internet either, just mobile service.
  • It's interesting how virtually none of the comments are about Puerto Rico.
  • Load shedding is, in effect, a virtual battery too, especially from industrial and commercial users who can pause operations that use massive amounts of electricity. When it gets bad, that's when residential users' smart thermostats can pause HVAC use where possible (except not for sensitive groups or homes with sensitive pets).

The less time planning, the more time programming.

Working...