Get paid by the grid
for the energy you store.
A virtual power plant connects your battery to the grid. When demand peaks, you earn a payment for every kilowatt-hour dispatched.
Operating VPP capacity in North America has passed 37.5 gigawatts as of mid-2026. The residential segment is the fastest-growing part of that capacity — home batteries are now considered a core grid resource by regulators in California, New England, and Arizona.Source: Clean Energy States Alliance, via Trend Bulletin, July 2026.
Without VPP: 12-18 years payback. With VPP enrollment: 3-5 years.
VPP is not an add-on. It's what makes a home battery make financial sense.
Important — not all batteries qualify for VPP programs
VPP programs require grid-tied battery systems with utility-grade remote dispatch capability. Portable power stations (EcoFlow, BLUETTI, Anker SOLIX portable units) cannot participate in VPP programs — they are not connected to your utility's grid management system.
Confirmed VPP-eligible batteries as of August 2026:
- Tesla Powerwall 2 and 3
- Enphase IQ Battery 5P and 10T
- Franklin WH aPower / aPower2
- Sonnen ecoLinx and SonnenCore+
- Generac PWRcell
- SolarEdge Home Battery
- LG RESU (select programs)
- GM Energy PowerBank (Connecticut only)
Program eligibility varies by state and utility. Verify with your installer before purchasing.
Tesla reported paying Powerwall owners $9.9 million through its VPP programs in a single year — confirming the earnings model works at scale.
Source: Electrek via Trend Bulletin, July 2026.
Sunrun, Tesla, and Renew Home announce the largest residential VPP program in US history
On June 25, 2026, Sunrun, Tesla, and Renew Home announced plans for a 16.8 gigawatt virtual power plant program - the largest residential VPP initiative ever proposed in the United States. The three companies paid more than $67 million to residential VPP participants in 2025 alone. If you own a home battery, this is what it could work for.
Your battery. Your energy.
Your earnings.
HEAR (the federal Heat and Energy Affordability Rebate — a rebate program, not a tax credit) does not cover battery storage systems. However, many battery installations require an electrical panel upgrade — and HEAR does cover panel upgrades up to $4,000 for income-qualifying households.
If you're installing a battery and your home needs a panel upgrade, you may be able to use HEAR for the panel portion of the project even though the battery itself doesn't qualify. The Section 25C tax credit that previously covered panel upgrades expired December 31, 2025, so there is no federal tax credit for panel upgrades in 2026.
Ask your installer: “Does this battery installation require a panel upgrade? If so, can we structure the project to use HEAR for the panel component?”
Source: energyrebatecalculator.com, February 2026; DOE HEAR program guidance.
Xcel Energy pays
Colorado battery owners.
Colorado law requires Xcel Energy to operate a virtual power plant program and pay customers who let the utility dispatch their stored battery energy during peak demand.
Xcel Energy's Renewable Battery Connect program pays Colorado battery owners an upfront incentive of $250 per kilowatt of battery capacity, plus $100/year for five years for allowing the utility to dispatch stored energy during peak demand events.
The program is separate from the solar savings Sol Country calculates - VPP payments stack on top of net metering credits and federal tax incentives.
A prior enrollment window closed February 20, 2026 after Xcel's 2025 budget was exhausted. Existing enrollees continue to be paid. Check xcelenergy.com for current availability before installing. Sol Country helps you understand the program - it does not enroll you. Enrollment happens directly with Xcel Energy.
$300 to $4,000 per year.
Here's what the data shows.
$300-4,000/year depending on your state, utility, battery size, and the number of dispatch events called. ConnectedSolutions (New England) pays $225/kW in summer plus $50/kW in winter — a 10kWh battery earns approximately $275-1,000/year. California programs pay approximately $2/kWh per dispatch event. Arizona's APS VPP pays $600-800/year for a 13.5 kWh battery, before time-of-use arbitrage.
Without VPP: 12-18 years payback. With VPP enrollment: 3-5 years. Here are the documented earnings ranges from active 2026 programs:
During the early July 2026 PJM heatwave, which pushed grid demand to near-record levels across the mid-Atlantic and Midwest, residential VPP batteries were dispatched to reduce load on the grid — exactly the scenario these programs are designed for. Homeowners enrolled in VPP programs earned payments for their battery's contribution during this event.
40% of new US residential solar installations include battery storage — rising to 60%+ in California and other high-electricity-rate markets. Source: Solar Permit Solutions, April 2026, citing residential solar installation data.
Earnings vary by battery size, number of dispatch events, and program terms. These figures represent documented 2026 program rates, not guarantees. Sol Country is not affiliated with any VPP program and does not process enrollment.
Calculate your battery upgrade payback →What's happening in your
state right now.
Massachusetts
Massachusetts set a target of 3.5 GW from new load-management strategies including VPPs in Q1 2026 - one of the most aggressive state VPP targets in the US. That makes battery + ConnectedSolutions enrollment particularly well-timed: the utility incentive to grow VPP capacity is as strong as it's ever been. Source: SEPA/NCCETC Q1 2026 VPP Update.
Minnesota
$430 million distributed battery program approved Q1 2026 - one of the largest state-level battery storage investments in US history.
Texas
Multiple new residential VPP programs launched in 2026 including Base Power / El Paso Electric (up to 10MW of residential storage) and Sonnen / Solrite ($20/month battery, 3,000 households enrolled).
Illinois
Investor-owned utilities required to file scheduled dispatch VPP tariff. Illinois Commerce Commission establishing the program - watch for launch in late 2026.
New York
New legislation proposed to give residential battery owners 'fair market' access to VPP compensation comparable to commercial solar. Assembly bill pending.
Vermont
Green Mountain Power operates one of the most established residential VPP programs in the country - battery lease or bring-your-own-device options available.
California — four programs, one largely closed
California has four VPP programs in 2026. Enrollment availability varies significantly:
Sunrun CalReady: Active May 1 - October 31, 2026. Available to Sunrun solar-and-storage customers. 75,000 batteries across 56,000 homes — the largest residential VPP program in the US (Trend Bulletin, July 2026). Participants earn seasonal rewards plus a bill credit. Battery maintains 20% backup reserve.
SGIP-VPP: Active for qualifying SGIP-funded battery installations. Verify eligibility with your installer.
ELRP (Emergency Load Reduction): Verify current enrollment status with your utility.
DSGS (Demand Side Grid Support): Largely closed to new residential enrollment in 2026 due to budget constraints. Many sites still show this as available — it is not for most new applicants.
Per-event earnings in active California programs: approximately $2/kWh delivered during events. SMUD (Sacramento) adds approximately $440/year per Powerwall plus a one-time enrollment incentive. Total California earnings: $300-575 per summer depending on dispatch events.
SGIP in 2026 — two very different programs. General SGIP (non-income-qualified): largely closed for new applicants in 2026. Do not count on general SGIP funding.
SGIP Equity Resiliency tier — still active: for income-qualified households in high fire-risk areas or areas with frequent outages, $1,100/kWh for storage plus $3,100/kW for solar — potentially $14,850+ for a standard battery. This tier serves exactly the California homeowners who need batteries most: those in wildfire-prone areas who experience Public Safety Power Shutoffs. A waitlist exists but the program is accepting applications. Verify current availability at sgipinfo.com. Ask your installer specifically about the Equity Resiliency tier if you are in a high fire-risk area.
Source: exspenditure.com California solar incentives guide, April 2026; energyrebatecalculator.com battery rebates, February 2026; California Energy Commission program data.
See California's full energy savings picture including SB 868 status →Arizona (APS) — $600-800/year active
Arizona Public Service (APS) runs one of the most financially attractive residential VPP programs in the country. Qualifying battery owners earn through combined capacity payments, per-event participation credits, and TOU arbitrage. Eligible batteries include Powerwall and Enphase IQ Battery.
Earnings: $600-800/year for a 13.5 kWh battery from combined VPP capacity payment and per-event credits. TOU arbitrage adds further savings: charging at $0.1235/kWh off-peak and discharging at $0.3439/kWh peak is a $0.22/kWh spread. VPP earnings and TOU arbitrage are additive — the same battery does both jobs.
Source: AZ Energy Hub, April 2026, citing APS published program documents.
New Jersey — grid services pilots
New Jersey has grid services pilots underway in 2026, with broader residential VPP rollout expected. If you're considering a battery in New Jersey, ask your installer about current pilot program availability.
August 2026: New Jersey BPU released a new Garden State Energy Storage Program proposal on August 19 — expanding home battery storage incentives statewide. Verify current program status at nj.gov/bpu.
New Jersey's balcony solar bill (Garden State Plug-In Solar Act) has passed both chambers and awaits the Governor's signature. When signed, NJ balcony solar + a battery + VPP enrollment could be a particularly strong combination given NJ's high PJM territory capacity costs.
New Jersey balcony solar status →Watch for: Illinois (ComEd) — proposed 2026
ComEd proposed a new Bring Your Own Device Load Reduction program in February 2026, expanding VPP eligibility to residential customers with smart thermostats and thermal storage devices. This is a proposal, not yet an active program. Illinois is also an advancing balcony solar state — watch for both to develop together.
Source: Smart Electric Power Alliance Q1 2026 VPP Policy Update, May 2026.
Smart panels and VPP
A smart panel makes your battery a better VPP asset — automated dispatch, no manual intervention needed.
How smart panels improve VPP earnings →Your EV may count too
A handful of EVs can discharge back to the grid or your home. V2G programs are still limited to a few utility territories in 2026.
Does your EV support V2G? →VPP programs
available now.
| Program | States | Payment type | Typical annual earnings | Battery requirements | Status |
|---|---|---|---|---|---|
ConnectedSolutions | CT, MA, RI, NH, VT, ME, NJ, PA | Capacity payment | $275-1,000 | Most residential batteries | Active — verify at provider site |
Xcel Renewable Battery Connect | CO | Capacity + performance | Verify current rates | Most residential batteries | Active — verify current enrollment |
Sunrun CalReady Sunrun also operates 'Sunrun Shift' in some markets beyond California — verify current state availability at sunrun.com | CA | Seasonal rewards + bill credit | $300-575/summer | Sunrun solar+storage customers only | Active (May 1 - Oct 31, 2026) — verify at sunrun.com |
APS VPP | AZ | Capacity + per-event | $600-800/year (13.5 kWh) + TOU arbitrage | Powerwall, Enphase IQ | Active — verify at provider site |
SMUD My Energy Optimizer | CA (Sacramento only) | Capacity + enrollment bonus | ~$440/year + one-time bonus | Powerwall and others | Active — verify at provider site |
Green Mountain Power | VT | Lease or BYOD | Varies | GMP service territory | Active — verify at provider site |
Sonnen / Solrite | TX | Flat retail rate + battery provided | $0.12/kWh + included battery at $20/mo | Sonnen EcoLinx | Active — verify current enrollment |
El Paso Electric / Base Power Residential Battery VPP El Paso Electric partnered with Base Power to deploy up to 10MW of residential battery storage before the summer 2026 peak. Batteries operate independently of existing solar and provide grid services during peak demand while maintaining backup power. Base Power handles installation and maintenance. Separate from the Sonnen / Solrite program, which operates statewide. | TX (El Paso territory) | Utility-coordinated battery deployment | Battery installed and maintained by Base Power | Base Power battery (installed at qualifying homes) | Active (launched early 2026) — verify at basepwr.com |
Minnesota Distributed Battery Program Minnesota approved a $430 million distributed battery program in Q1 2026, one of the largest state-level battery programs in the US. Program details and enrollment are still being finalized. Contact your Minnesota utility for current enrollment status. Source: SEPA/NCCETC Q1 2026 VPP Policy Update. | MN | State-approved utility program | $430 million allocated | To be determined at enrollment | Approved — enrollment details pending |
Illinois Storage for All Part of Illinois's Clean and Reliable Grid Affordability Act (signed 2026). Provides incentives for income-qualified households to install battery storage colocated with solar projects. Program is part of Illinois's 3 GW battery storage procurement target for 2030. Contact ComEd or Ameren Illinois for current enrollment details. Source: Center for American Progress, April 2026; Illinois Power Agency. | IL | State-mandated incentive program | Incentive amounts being finalized | Battery storage colocated with solar | Active — program details being finalized |
Swell Energy VPP | Multiple states (verify current coverage at swellenergy.com) | Performance-based per dispatch event | $100-500+/year | Works with multiple battery brands (not limited to Powerwall) | ACTIVE — verify current enrollment status at swellenergy.com |
DSGS (Demand Side Grid Support) | CA | Per-event | ~$350-575/summer historically | Most residential batteries | Largely closed to new enrollment 2026 |
VPP programs expand frequently. This table is updated monthly. Last verified: August 2026.
If your utility is not listed, ask your battery installer — programs are launching faster than most homeowners realize.
Sol Country tracks demand response and VPP programs in all 50 states, and is not an enrollment service — enrollment always happens directly with your utility or program provider. No battery yet? Demand response programs like OhmConnect pay in TX, CA and NY without one.
NOTE ON 2026 BATTERY PRICING: Battery prices in 2026 are affected by tariffs on Chinese-manufactured components. Sol Country's price estimates reflect mid-2026 quotes — prices are changing more frequently than in prior years. Get current quotes from at least 3 certified installers before committing. Tesla Powerwall 3 and Enphase IQ Battery are manufactured domestically and are less affected by import tariffs than some other battery brands.
What homeowners
ask most.
Will the utility drain my battery during an outage?
No. VPP programs only dispatch during grid-stable conditions. Your battery's backup function - protecting your home during a grid outage - is always prioritized over VPP dispatch. Modern batteries including Powerwall, Enphase IQ, and Franklin WH detect grid loss instantly and stop VPP discharge automatically. You will not lose backup protection by enrolling in a VPP program.
Do VPP earnings affect my federal tax credit?
No. VPP earnings are treated as separate income and do not reduce or clawback the federal investment tax credit on your battery system.
Am I required to enroll in VPP to get state rebates?
It depends on the specific rebate program. Some state and utility upfront rebates require VPP enrollment as a condition. Always read the rebate terms before assuming enrollment is optional. Ask your installer to confirm before signing any rebate paperwork.
Be first when Sol Country's
VPP network launches in your state.
Sol Country is building a consumer VPP network - a smarter way to enroll, monitor, and get paid for your stored energy. Join the waitlist and we'll notify you when it's available in your utility territory.
Sol Grid waitlist members will also get first access to peer-to-peer energy trading when it becomes available in their state.
Peer-to-peer energy trading -
the next frontier.
Virtual power plants let you sell energy back to the utility. The next step is selling directly to your neighbors - cutting out the utility entirely and setting your own price.
Peer-to-peer energy trading is already operating in Brooklyn, NY and several European markets. The technology works. The barrier is US utility regulation - which is moving, state by state, in the same direction as balcony solar legislation.
Own your energy.
Get paid for it too.
Sol Country notifies you the moment a VPP program opens in your utility territory.