As the solar industry continues to grow and extreme weather events put stress on electric grids, some local companies are looking to encourage the adoption of home battery systems. Among these are Santa Monica-based Swell Energy Inc. and Sawtelle-based Haven Energy, which are using “virtual power plant” programs to compensate customers for reducing demand on the power grid. Haven launched its program in October while Swell, which is an energy management and smart grid solutions provider, is using a new partnership with software provider Shifted Energy to bolster its existing VPP programs.
VPPs don’t involve a physical power plant or power generation facility. Instead, homeowners with solar panels can collect energy during off-peak times, store it in their home battery systems and sell it back to the grid when demand is high to earn extra income. VPPs can be critical in California where the grid is vulnerable to power outages, particularly during hot evenings when more individuals are at home and solar generation opportunities are over.
Haven’s VPP program is through the California Energy Commission’s Demand Side Grid Support Program, which offers incentives to customers who help lessen stress on the electric grid. Outside of its VPP program, Haven works as a one-stop shop to guide homeowners through the process of selecting, financing and installing home battery systems.
Vinnie Campo, Haven’s co-founder and chief executive, said no action is required from the customer once enrolled in the program. Haven aggregates the home batteries in its program and sends the energy to the grid in a single bundle, while reserving enough of the customer’s battery capacity to power their own home. Participants are guaranteed a minimum of $125 per battery per year in compensation.
“Home battery systems are driving massive interest in demand response programs and vice versa for homeowners dealing with frequent power outages, especially those living in areas of greater risk,” Campo said. “The prospect of being able to essentially get paid by a utility company and put an end to power outages is motivating and another reason to consider adding battery backup to their homes.”
Additional incentives for customers to install home battery systems include a rebate program from the state’s Public Utilities Commission for energy storage installation and a 30% federal tax credit for battery storage systems through the state’s Net Energy Metering system.
Swell Energy provides energy management services and financing for home battery and solar systems and currently works with utility providers like San Francisco-based Pacific Gas & Electric Co. and San Diego Gas & Electric. Swell Energy partnered this month with Hawaii-based Shifted Energy to combine Swell’s power plant management platform with Shifted Energy’s smart management technology for household energy loads, such as water heaters and eaters and electric vehicle chargers. Swell raised $120 million of series B funding in November of last year to support the deployment of more than 26,000 rooftop solar energy storage systems.
