MANY MINDEDHouseholds can join grid-stabilizing energy networks through home devices
Households in the US can join virtual power plants (VPPs) to contribute to grid stability using existing home devices like smart thermostats, electric vehicles, and home batteries. As of 2025, an estimated 4 million households with smart thermostats were enrolled in VPP programs. These programs, which operate in over 500 locations across the US as of 2023, allow utilities to control device usage during peak demand periods in exchange for discounts on energy bills. Participants typically receive signing bonuses of $50 to $150 for smart thermostats and annual payments of $25 to $50, with home battery and EV programs potentially delivering hundreds to thousands of dollars in annual savings.
The mechanism relies on participants’ willingness to allow temporary adjustments—such as shifting thermostat settings or EV charging schedules—to support grid resilience. While VPPs are concentrated in regions like California, Texas, New England, and the mid-Atlantic, eligibility varies by device type: smart thermostats require approved Wi-Fi models, EVs depend on automaker and utility compatibility, and home batteries need specific brand and communication capabilities. Crucially, most consumer VPPs do not actively send energy to the grid, and participants can opt out of temporary adjustments with minimal restrictions.
This model moves energy affordability by reducing bills for households that can participate, while strengthening grid resilience in regions with stressed infrastructure. However, technical kinks, billing errors, and participation barriers like night shifts or caregiving responsibilities mean not all households can engage. Program maturity varies significantly by region and device type, and data collection on usage patterns remains a concern for privacy and accuracy. The next phase will test whether VPPs scale reliably without compromising household flexibility or utility billing integrity.
Source: MIT Tech Review