Virtual power plants in California

Demand Side Grid Support (DSGS) Program

A state program that pays customers for reducing load or supplying backup power when the grid is stressed between May and October. Homeowners join through an aggregator such as their battery maker, which dispatches the battery during events.

Run by

California Energy Commission

Where

PG&E, SCE, SDG&E, LADWP, CCA customers in these areas (per Tesla's enrollment page)

Devices

home batteries (through aggregators/battery makers), backup generation and load reduction

Who can join

Customers of PG&E, SCE, SDG&E or LADWP (or a CCA in those areas) with a residential account who aren't in a conflicting demand response program, enrolled through a participating provider.

What it pays

Through Tesla's DSGS VPP, 2026 monthly capacity rates: May $7.00/kW, June $7.25/kW, July $13.10/kW, August $14.04/kW, September $14.97/kW, October $8.19/kW; Tesla says that comes to about $280 a year per Powerwall at most. Events run 4-9 PM, May-October, up to 2 hours each.

Last checked 2026-10-02

Emergency Load Reduction Program (ELRP) - battery VPP aggregation

When the grid operator declares an emergency, enrolled batteries discharge between 4 and 9 PM from May through October. Customers enroll through their battery maker, which handles payment.

Run by

PG&E, SCE and SDG&E (CPUC program)

Where

PG&E, SCE, SDG&E, CCA customers in these territories

Devices

home batteries from participating manufacturers

Who can join

Residential customers with an approved battery from a participating manufacturer, a valid interconnection agreement and a smart/interval meter, not in a conflicting demand response program.

What it pays

Per Tesla's PG&E and SCE ELRP pages: $2.00 for every extra kWh delivered during an event above typical behavior, which Tesla estimates at $100-$450 per Powerwall per year. SDG&E says participants are paid by their battery manufacturer.

Note: Tesla's SCE enrollment agreement runs through Dec 31, 2027.

Last checked 2026-10-02

Self-Generation Incentive Program (SGIP) - Residential Solar and Storage Equity

A rebate that helps pay for a home battery (and solar) up front. It isn't a VPP itself, but it lowers the cost of a battery that can later join one.

Run by

CPUC (administered by utilities/program administrators)

Where

PG&E, SCE, SDG&E, LADWP, other publicly owned utilities via designated administrators

Devices

home batteries, solar paired with storage

Who can join

Low-income residential customers statewide.

What it pays

Residential Solar and Storage Equity budget: $1,100/kWh for storage and $3,100/kW for solar; $280 million authorized; available for reservation starting June 2, 2025.

Note: The CPUC page didn't confirm how much funding was left for 2026; check with your installer.

Last checked 2026-10-02

Sunrun CalReady

Sunrun dispatches stored solar energy from customers' batteries every evening from 4 to 9 PM, May through October, as part of the state's DSGS program. Customers keep at least 20% of the battery reserved for backup.

Run by

Sunrun

Devices

Sunrun solar + battery systems

Who can join

Sunrun solar-plus-storage customers in California.

What it pays

Terms are set in the company's agreement. Check the company's current offer.

Note: Source covers the 2025 season (over 56,000 customers and about 75,000 batteries); a 2026 announcement wasn't checked.

Last checked 2026-10-02

SCE Smart Energy Program

During energy events SCE can raise enrolled thermostats by up to four degrees to cut AC use, and customers earn bill credits.

Run by

Southern California Edison

Where

SCE

Devices

smart thermostats (Nest, ecobee, Honeywell Home, Amazon, Sensi and others)

Who can join

SCE residential customers with a qualifying smart thermostat, enrolled through an authorized service provider.

What it pays

$75 one-time bill credit for enrolling, plus up to $50 in credits for participating June 1-September 30 (up to $125 total).

Last checked 2026-10-02

PG&E Seasonal Aggregation of Versatile Energy (SAVE)

A PG&E demonstration that dispatches home batteries and smart panels on specific neighborhood circuits to relieve local summer peaks, for up to 100 hours a season.

Run by

PG&E

Where

PG&E (focused on South Bay Area and Central Valley circuits)

Devices

home batteries (Sunrun, Tesla Powerwall), SPAN smart electric panels

Who can join

Up to 1,500 residential battery customers and 400 smart-panel customers on targeted circuits.

Note: Source describes the June-October 2025 season; 2026 status not confirmed. Customer payments weren't disclosed.

Last checked 2026-10-02

PG&E SHARE (Smart Home Assets for Reliability and Efficiency)

A Google-funded PG&E pilot that coordinates about 21,000 existing devices (about 12 MW) in the San Jose area, with partners including Tesla, Sunrun and Renew Home. Google pays for customer incentives.

Run by

PG&E (funded by Google)

Where

PG&E (San Jose area)

Devices

home batteries, smart thermostats, HVAC systems

Who can join

Customers in the San Jose area; detailed criteria not yet published.

Note: Enrollment expected to begin fall 2026, running through 2027 (reported Sep 8, 2026).

Last checked 2026-10-02