The five ways programs pay
VPP programs pay for one of two things: being available when the grid needs help (capacity), or the energy you actually deliver during an event. Here's how that shows up in real programs. Amounts change every season, so treat these as examples and check the program for current terms.
1. Pay per kW of performance
Massachusetts' ConnectedSolutions pays $275 per kW of a battery's average contribution during summer events. A 5 kW battery could earn up to $1,375 a year. Events run up to 3 hours, between 3 and 8 pm, on up to 60 non-holiday days from June 1 to September 30 [1].
2. An upfront rebate
Vermont's Green Mountain Power pays an upfront rebate when you buy your own battery and let GMP use it to cut peak demand: $850 per kW for a 3-hour discharge or $950 per kW for a 4-hour discharge, up to $10,500 [2].
3. Pay per kWh delivered in an event
California's Emergency Load Reduction Program (ELRP) pays for the extra energy a battery delivers during grid emergencies. Participants are paid through their battery manufacturer [3]. California's state DSGS program also pays monthly capacity rates through aggregators during its May to October season [4].
4. A share of the company's earnings
When a company owns the battery, the company earns most of the grid revenue and may pass some along. Sunrun offered up to $150 per battery for its 2025 CalReady season [5], and says its customers earned more than $17 million collectively in 2025 from its programs [6].
5. Bill credits on an electricity plan
In Texas, some retail electricity plans include battery participation. Tesla says its Texas plan credits Powerwall owners for VPP participation [7]. Credit rates vary and aren't always published.
Smart thermostat rewards
Thermostat programs pay less but cost nothing extra if you already have a smart thermostat. ecobee says customers could earn up to $125 in rewards, with the amount set by the local utility program [8].
Questions to ask before you sign up
- Is the payment per kW, per kWh, a rebate or a credit, and is it guaranteed for a set number of years?
- How many events per season, how long, and at what times?
- Can you opt out of an event, and does that cost you anything?
- Who owns the equipment, and what happens if you sell your home?
Questions people ask
How much can I earn from a home battery VPP?
It depends heavily on the program. Massachusetts' ConnectedSolutions pays $275 per kW of average event performance, so a 5 kW battery could earn up to $1,375 a year. Other programs pay per kWh delivered or a one-time rebate.
Do I get paid if a company owns my battery?
Usually the company keeps most of the grid revenue because it paid for the equipment. Some companies share part of it, for example through seasonal rewards.
Sources
- Mass Save, ConnectedSolutions for batteries
- Green Mountain Power, Bring Your Own Device
- SDG&E, Emergency Load Reduction Program
- Tesla Support, VPP powered by DSGS
- Sunrun press release, May 1, 2025
- Sunrun, distributed power plant press release
- Tesla, Virtual Power Plant support
- ecobee, Community Energy Savings