Energy might well be the next big frontier in the smart home – and broader technology – space. Devices need power in order to remain smart, but as consumers continue to add more and more devices to their homes and networks, and as the truly connected home creates more of a demand for energy, it’s a space that needs to be looked at and innovated.
A major step down that path appears to be right in front of us thanks to a new partnership between energy storage company sonnen, retail electric provider Abundance Energy, and energy management brand Energywell. The three companies announced today a new venture that will result in a behind-the-meter, battery-enabled Virtual Power Plant (VPP).
“Our VPP solutions enable customers to actively participate in the energy market while maintaining resilience in their homes,” Blake Richetta, Chairman and CEO of sonnen, said in a statement. “With Abundance Energy, and Energywell, we’re setting a new standard for residential energy management.”
The collaboration, available to Abundance Energy customers in Texas, will leverage an integration between Energywell’s Proton platform and sonnen’s advanced VPP battery control technology. Putting sonnen’s VPP tech behind a meter, and making it battery-powered, allows for the battery to be continuously managed in response to market price signals, customer usage, and solar generation. Energywell’s Proton platform will layer in a system that can provide advanced forecasting and optimization tools.
Networked together, you have the VPP, which can dynamically balance energy supply and demand in order to optimize value for both the customer and the overall energy grid.
According to the trio of brands, the initiative aligns with growing demand for resilient, customer-driven energy solutions in Texas. The current customer base represents roughly 60 MWh. By comparison, data from the U.S. Energy Information Administration shows that the average American household consumes around 10,500 kWh annually, or roughly 30 kWh daily. Therefore, 1 MWh could power around 300 homes for a day.
The scale of this VPP is expected to continue growing and could be on track to surpass Tesla as the largest VPP in Texas by the end of 2026.
EDIT: sonnen provided an update to include additional information on one other partner attached to the program. The program is made available to customers with zero upfront costs thanks to SOLRITE, the financing partner for this VPP program. SOLRITE effectively owns all of the batteries and is installing them in customers’ homes.
“At SOLRITE, we believe financial innovation is key to unlocking the full potential of distributed energy,” Regan George, CEO of SOLRITE Energy, added to the statement. “By eliminating upfront costs for solar and battery installations, we enable more homeowners to participate in this VPP program, delivering clean, reliable power to customers and adding value to the grid.”
