Sunrun and PG&E Complete First Season of Innovative Residential Distributed Power Plant
- None.
- None.
Insights
The collaboration between Sunrun and PG&E represents a significant development in the energy sector, particularly for distributed energy resources (DERs). The ability to aggregate solar-plus-storage systems to function as a distributed power plant not only showcases the scalability of residential energy storage but also underscores the potential for DERs to enhance grid stability and reliability. This is especially pertinent in California, where energy demand often peaks due to climatic conditions such as heatwaves.
From an energy market perspective, the rapid deployment and effectiveness of the Peak Power Rewards program could serve as a blueprint for other utilities and states. The program's success in enrolling 8,500 customers and consistently providing an average of 27 megawatts during peak hours illustrates consumer willingness to participate in energy-sharing initiatives. Moreover, the program's design, offering upfront payments and smart thermostats to participants, provides a model for incentivizing customer engagement in grid support services.
As DERs continue to proliferate, utilities may increasingly rely on such partnerships to manage load and prevent outages, which could reduce the need for investment in traditional power plants and infrastructure. This shift could also influence energy market dynamics, with potential implications for energy pricing and the valuation of utility companies that successfully integrate DERs into their grid management strategies.
The partnership between Sunrun and PG&E is a noteworthy event for investors, highlighting Sunrun's capacity to monetize its fleet of home batteries and contribute to grid stability. The financial implications for Sunrun include not only revenue from the partnership but also the potential for increased market share as the company positions itself as a leader in the storage-first approach to clean energy.
For PG&E, the initiative could translate into operational cost savings by deferring or avoiding capital expenditures on new generation capacity. The program's success in providing consistent power during peak demand periods may also enhance PG&E's regulatory standing and customer satisfaction, potentially impacting its stock performance in a positive manner.
Investors should also consider the long-term implications of such partnerships on the traditional utility business model. As distributed power plants become more common, utilities that adapt and forge strategic partnerships could see improved resilience and financial stability, while those that fail to evolve may face increased competitive pressures and regulatory challenges.
The Sunrun and PG&E partnership is a landmark in the renewable energy landscape, signifying a shift towards a more decentralized and resilient energy system. The deployment of distributed power plants comprised of residential solar-plus-storage systems is an innovative approach that could revolutionize how energy is produced and consumed.
By leveraging software to manage the discharging of home batteries, Sunrun is at the forefront of smart grid technology, which is essential for integrating intermittent renewable energy sources. This technology enables the provision of on-demand power and supports grid stabilization without the participants' active involvement, a key advantage over traditional demand response programs.
The environmental impact of such programs is substantial, as they reduce reliance on fossil fuel-powered peaker plants, which are typically used during periods of high electricity demand. By displacing these plants, distributed power plants can significantly lower greenhouse gas emissions and contribute to California's aggressive clean energy goals.
First-of-its-kind partnership between
The Energy Efficiency Summer Reliability Program, also known as Peak Power Rewards, is a comprehensive and fully operationalized residential solar and storage distributed power plant. The program quickly achieved its maximum enrollment of 8,500 customers and provided a consistent average of 27 megawatts of power during evening peak hours for more than 90 consecutive days. With an instantaneous peak output of nearly 32 megawatts, the program frequently supplied the grid with up to 30 megawatts – sufficient power for more than 20,000 homes.
Sunrun managed the participating fleet of home batteries to provide power to PG&E in the same way that a centralized, traditional power plant would. However, Peak Power Rewards was operational within six months of contract signature, a timeframe not possible when building traditional power plants.
"The Peak Power Rewards program achieved a customer participation rate and power supply volume that's never been accomplished before," said Sunrun CEO Mary Powell. "PG&E was able to confidently rely on the renewing daily resource of Sunrun's fleet of home solar and storage systems. We are rapidly transitioning to a storage-first company and the results of this partnership highlight the unique capability that distributed power plants provide communities."
Sunrun's distributed power plant programs use software to seamlessly manage the discharging of thousands of home batteries onto the grid in coordination with utility needs, making it so customers don't need to take any action. Peak Power Rewards created a favorable situation for PG&E, Sunrun and their shared customers. Enrolled battery systems discharged energy back to the grid every day from 7 p.m. to 9 p.m. during the months of August through October, a critical window when energy needs are highest in
"Working together with partners like Sunrun is a win-win-win for our customers, the electric grid and
PG&E is the nation's utility leader in both rooftop solar and behind-the-meter storage, having connected nearly 820,000 customers with rooftop solar to the electric grid totaling approximately 8,039 megawatts of capacity and with nearly 75,000 PG&E customers having installed and connected storage systems to the grid in PG&E's service area, totaling more than 670 megawatts of capacity. These customers could on average rely on over 10 hours of backup power using their storage system, a critical resource for grid resiliency, particularly during storms, heatwaves, and emergency energy alerts.
"What is happening in
Sunrun is the nation's largest provider of distributed power plant programs with years of experience managing a fleet of tens of thousands of home batteries and assisting utilities with demand response planning. Unlike traditional power plants, Sunrun's distributed power plants can quickly be set up and operationalized without the need for costly new infrastructure, as was the case with the PG&E partnership. Sunrun and PG&E are currently exploring possibilities for future programs that will jointly benefit customers, electric grid resiliency, and Californians overall.
About Sunrun
Sunrun Inc. (Nasdaq: RUN) revolutionized the solar industry in 2007 by removing financial barriers and democratizing access to locally-generated, renewable energy. Today, Sunrun is the nation's leading provider of clean energy as a subscription service, offering residential solar and storage with no upfront costs. Sunrun's innovative products and solutions can connect homes to the cleanest energy on earth, providing them with energy security, predictability, and peace of mind. Sunrun also manages energy services that benefit communities, utilities, and the electric grid while enhancing customer value. Discover more at www.sunrun.com
About PG&E
Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE: PCG), is a combined natural gas and electric utility serving more than sixteen million people across 70,000 square miles in Northern and
View original content to download multimedia:https://www.prnewswire.com/news-releases/sunrun-and-pge-complete-first-season-of-innovative-residential-distributed-power-plant-302046740.html
SOURCE Pacific Gas and Electric Company
FAQ
What is the Energy Efficiency Summer Reliability Program also known as?
How many solar-plus-storage residential systems were involved in the partnership?
What was the peak output of the program?
What did enrolled customers receive for participating in the program?
How many customers are connected to the electric grid with rooftop solar in PG&E's service area?
What is Sunrun exploring with PG&E?
