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Solar + storage

Solar + storage: how rooftops became California’s newest power plant

Solar panels make power when the sun shines; batteries let that power show up when the grid needs it. Together they built the biggest residential VPPs in the country.

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The short answer

  • Solar alone isn’t a VPP asset — it can’t be turned up on command at 6 p.m. Paired with a battery, it becomes the core of the largest VPPs in the country.
  • California proved it on Sept. 9, 2026: more than 140,000 batteries delivered over 580 MW during a heat wave, and Brattle estimates 700 MW of enrolled capacity saved $206 million (pv magazine USA).
  • Per-battery pay is modest — roughly $50 to $450 a year — but it stacks on top of solar bill savings, and some fleets average more (Lunar Energy).
  • Policy risk is high. California’s DSGS program depends on annual state funding, and new VPP bills await the governor’s signature.
580+ MWCalifornia batteries, Sept. 9, 2026
517 MWfrom Tesla’s fleet alone
$206MBrattle-estimated savings, 700 MW
20%reserve Sunrun keeps for backup

What a solar-paired battery earns in California

Published annual or seasonal payments per battery. Ranges reflect event count and battery size.

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$0$100$200$300$400$500Lunar Gridshare fleetaverage per battery$464PG&E emergency program (ELRP)per Powerwall · season$100–$450California DSGS via Teslaup to · per Powerwall$280Sunrun CalReadyper battery · year$50–$150Sunrun CalReady+per battery$150
Sources: Lunar Energy (fleet average); Tesla, PG&E ELRP ($2/kWh); Tesla, DSGS; Sunrun. Payments may depend on program funding.

How solar companies became power plant operators

Sunrun reports more than 56,000 customers enrolled in CalReady, paid $50–$150 per battery a year while Sunrun keeps a 20% reserve for outages (Sunrun). Lunar Energy’s Gridshare software manages about 130,000 Sunrun batteries and reports an average of $464 a year per battery (Lunar Energy). Enphase points to Massachusetts ConnectedSolutions customers averaging about $1,500 a year (Enphase).

Outside California, the Department of Energy highlights San Diego Community Power’s Solar Battery Savings program ($0.10 per kWh discharged on peak, with a budget used up in three months) and Puerto Rico’s LUMA program, which pays $1.25 per kWh through aggregators and has more than 7,000 participants (DOE Liftoff).

Go deeper on Battery Economics

Does a battery pay on time-of-use rates?

Solar plus storage savings before any VPP payment, by utility rate.

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Method and caveats

Figures are from program operators and trade press and are not independently audited. Lunar’s average reflects its fleet’s mix of programs. Checked October 1, 2026.

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