Sunrun, Tesla and Renew Home agree to deliver up to 16.8 GW of flexible power via virtual power plants

Type: Partnership · Technology: Storage · Country: United States · Capacity: 16.8 GW · Announced: 2026-06-25

Sunrun, Tesla and Renew Home announced a partnership to aggregate home battery systems and smart thermostats into virtual power plants capable of delivering up to 16.8 GW of flexible capacity to hyperscalers and utilities. The program would draw dispatchable power from roughly 7.8 GW of residential batteries and about 9 GW of demand‑response capacity from more than 8 million smart thermostats, potentially scaling to 12 million devices across 9 million homes in the United States, including Alaska, Hawaii and Puerto Rico. The capacity is split into 6.2 GW in the West, 4.6 GW in the Central region and 6 GW in the East, with California alone accounting for 4.66 GW of the total. The deal targets grid‑stress from data‑center growth, electrification and manufacturing, offering faster, land‑free capacity and direct payments to participating residential customers. The companies claim they paid over $67 million to households in 2025 for participation, underscoring the financial incentive built into the VPP framework.

Counterparties

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