Sunrun Inc. announced it has been exclusively selected by Puerto Rico's electric utility provider to help rebuild and transform the island's energy system through the development of a 17 megawatt virtual power plant (VPP), the first distributed large-scale storage program on the island. The VPP will help lower energy costs for all consumers, reduce pollution island-wide and help harden Puerto Rico's fragile grid with reliable, abundant solar energy by networking together more than 7,000 Sunrun solar-plus-battery systems installed on homes. Sunrun will spend the next year enrolling customers into the program and begin networked dispatches in 2024.

Customers will benefit from the cost savings of on-site energy generation and backup power and will also be compensated in exchange for strategically sharing their stored energy with Puerto Rico's power grid, creating a shared clean energy economy. Batteries enrolled in the VPP will continue maintaining adequate backup reserves to power through potential grid outages at participants' homes. All customers with batteries are also eligible to enroll and can opt out at any point during the 10-year program.

In 2019, two years after Hurricane Maria dismantled the island's electric grid, the Puerto Rico Energy Public Policy Act was passed by the Legislature to set the parameters for a forward-looking energy system that maximizes distributed generation. The Puerto Rico Energy Bureau (PREB) determined that VPPs were key to achieving the legislation's goals of building a resilient and robust energy system and meeting Puerto Rico's renewable portfolio standards. VPP technology enables utilities to call upon distributed resources for clean energy capacity instead of relying on dirty, expensive fossil fuel power plants.

VPPs give customers the opportunity to contribute to a cleaner energy future while delivering significant community benefits, including stabilizing the local electric grid, mitigating the risk of outages and reducing pollution through decreased reliance on peaker plants, which in turn saves all grid-connected customers money by cutting back on expensive fossil fuel consumption and centralized grid infrastructure investments. Sunrun is the nation's VPP leader and has over a dozen programs in various stages of development and operation, including the first wholesale market VPP in the country. This summer in California and New England, Sunrun's VPPs provided 1.1 and 1.8 gigawatt-hours of energy to local grids during extreme weather conditions, helping utility providers meet peak electricity demand and stave off power outages.

Coupled with increasing utility rates — some of the higher in the United States — and reliance on the old, poorly maintained fossil fuel power plants, Puerto Rico has seen a transformational shift away from an unreliable energy system, with tens of thousands of Puerto Ricans now with rooftop solar and batteries. Earlier this fall, Hurricane Fiona knocked out the island's power grid, leaving more than three million residents in the dark. Sunrun customers on the island were able to power through the extended outages.

Sunrun solar-plus-battery systems provided more than 350,000 hours of backup power to thousands of homes. Sunrun entered Puerto Rico in 2018 and has quickly become one of the island's large providers of residential solar energy and battery systems. Residents interested in participating can install a Sunrun home solar and battery storage system for as little as zero dollars down and at a consistent, low monthly rate. The Governing Board of the Puerto Rico Electric Power Authority approved the terms of the agreement on October 26, 2022, and the agreement is subject to regulatory sign-off by the Puerto Rico Energy Bureau and the Fiscal Oversight Management Board.