Could VPPs save rooftop solar?

Catalyst · 23 May 2024 · 41m

What this episode covers

Jigar Shah, director of the Department of Energy’s Loans Programs Office, argues that the U.S. rooftop solar market must pivot from selling 'dumb solar' to offering dispatchable capacity via Virtual Power Plants (VPPs) to survive regulatory shifts like California’s NEM 3.0. He explains that while battery attachment rates are surging, utilities lack transparent compensation mechanisms for system-level dispatchability, creating a mismatch between homeowner incentives and grid needs. Shah emphasizes that aggregating distributed energy resources—such as batteries, thermostats, and EV chargers—can significantly increase the utilization of existing distribution infrastructure, delaying costly upgrades and managing load growth from data centers and electrification.

Mentioned

Companies
Sunrun, Sonova, Energy Hub, Sun Edison, Carbon War Room, PG&E, Tesla, Rocky Mountain Power, Luma
Also
NEM 3.0, S-GIP

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