Sunrun Inc. announced it has completed its first successful season running a residential Virtual Power Plant in a wholesale capacity market, a first-of-its-kind in the country. In 2019, Sunrun won its cost-competitive bid into the Independent System Operator - New England, the region's grid operator and one of the largest wholesale electricity markets in the United States. The landmark contract was the first successful bid committing capacity value from home solar and battery storage systems to the grid. Sunrun won against polluting, centralized power plants, signifying a transformational shift toward a more modern, decentralized electricity system powered by locally-generated solar energy. In the summer months of June through August, Sunrun's New England VPP shared more than 1.8 gigawatt-hours of energy back to the grid. Thousands of Sunrun home solar systems across New England exported excess clean solar energy during the peak demand window of 1-5 p.m., effectively reducing overall energy demand and relieving stress on the region's energy grid. The VPP also helped minimize the use of expensive, polluting peaker plants while reducing energy costs across the region and ensuring a reliable source of power. This milestone comes at a critical economic period for Americans who face skyrocketing energy costs, record inflation
and severe heat waves that are prompting grid operators across the country to issue energy conservation warnings. Home solar and batteries, especially when networked together to form VPPs, can significantly support the grid and reduce peak demand. In an August report, ISO-NE detailed how home solar helped keep wholesale system demand below the average forecast throughout a heat wave in July, despite the region's heat index hitting 100 degrees or more. In addition, VPPs provide greater demand flexibility, which is critical as New England shifts to a winter-peaking system and customers further electrify their transportation and heating. Through their partnership, ISO-NE and Sunrun are demonstrating that local solar and batteries can deliver value to wholesale markets across the country and reduce grid costs for all.