California launches a program to Utilize Solar-Charged Batteries to Meet Electricity demand

There are currently around 100,000 solar-charged batteries in place at businesses.

The California Energy Commission (CEC) has approved a new program that aims to utilize the power generated by thousands of distributed solar-charged batteries located in homes and businesses across the state. This innovative concept, known as a "virtual power plant," forms part of the CEC's Demand Side Grid Support program. By remotely dispatching fleets of customer-sited batteries when demand for electricity is at its highest, the grid is most stressed, and energy prices are rising, this initiative intends to respond to grid emergencies, prevent power outages, lower prices for ratepayers, and ultimately avoid grid emergencies altogether. There are currently around 100,000 solar-charged batteries in place at businesses. Residential properties statewide, with a collective power capacity of approximately 1 GW.

The program approved by the CEC represents an initial step towards an electric system of the future that could draw on millions of distributed batteries to support the grid, communities, and residents. The California Solar and Storage Association proposed the virtual power plant pathway as a means for the state to benefit from the numerous advantages of customer-sited energy storage. However, the challenge lies in encouraging more consumers to invest in these batteries and establishing programs and incentives that allow energy providers to access them during the limited hours each year when the grid is most stressed, as highlighted by the California Solar and Storage Association.