Sunrun, a leader in residential solar energy and battery storage, and Orange and Rockland Utilities (O&R), a subsidiary of Consolidated Edison, have activated New York’s largest residential virtual power plant (VPP). This initiative involves over 300 solar-plus-storage systems installed in homes across O&R’s service area, designed to support the state’s electric grid during periods of high demand.
The VPP was approved by the New York State Public Service Commission as a demonstration project to help the state transition toward clean energy while improving grid resilience. It works by coordinating the solar energy stored from residential batteries, which Sunrun manages, and dispatching it during peak demand events. These home batteries supply stored solar power back to the grid, reducing stress on the centralized power infrastructure.
The systems are part of a year-round program that also provides backup power for participating households, ensuring energy security for homeowners even when the grid is under stress. Homeowners benefit from utility bill credits for the excess energy supplied to the grid while retaining 20% or more of their stored solar energy for backup in case of outages.
Founded in 2007, Sunrun has established itself as the largest provider of residential solar energy and battery storage systems in the U.S., managing over 116,000 installed storage systems nationwide. The company is a major force in the clean energy industry, responsible for nearly 50% of new residential battery installations in the country.
In this partnership with O&R, Sunrun handles the synchronization of the battery systems to maximize energy delivery to the grid during peak periods. Sunrun CEO Mary Powell emphasized the project's importance, stating, “This is an important step toward fortifying New York’s energy grid, using innovation to create a more affordable and reliable way to deliver power.”
Orange & Rockland Utilities, Inc., is a regulated utility serving approximately 300,000 electricity customers in southeastern New York and northern New Jersey. A subsidiary of Consolidated Edison, one of the largest investor-owned energy companies in the U.S., O&R strongly focuses on improving energy reliability and supporting New York’s ambitious clean energy goals.
The partnership with Sunrun on this VPP aligns with O&R’s ongoing efforts to modernize its energy infrastructure and reduce reliance on traditional power generation. By integrating residential solar-plus-storage systems into the grid, O&R is creating more flexible energy solutions that can be deployed when the grid needs them most.
Andre Wellington, O&R’s Director of Distributed Resource Integration, highlighted the significance of the collaboration, “The creation of this virtual power plant unlocks incredible benefits to the electric grid, providing our customers with the clean and reliable energy they expect and deserve.”
The 10-year program offers a substantial incentive for enrolled homeowners who receive free or heavily discounted home battery systems in exchange for participating in the VPP. Participants not only help improve the resilience of the electric grid but also enjoy financial benefits. By storing and using their solar power, they reduce electricity bills while earning credits for any excess energy supplied to the grid.
One participant, Joseph Ortiz of Rockland County, noted, “We signed up knowing that Sunrun’s solar and battery system would protect our home from outages while supporting the grid for the community. Without lifting a finger, we’re helping supply clean energy back to the grid.”
Virtual power plants, like the one launched by Sunrun and O&R, are critical to modernizing the energy system. Rather than relying solely on centralized power stations, VPPs use distributed energy resources like residential solar and batteries to provide power when needed most. This flexibility helps prevent blackouts and reduces the need for fossil-fuel-powered peaking plants, traditionally used during high-demand periods.
Sunrun operates over a dozen VPPs across the U.S., including the nation’s largest single-owner VPP. The company’s expertise in managing decentralized power systems positions it at the forefront of the energy transition.
