California legislators considering bills to bolster virtual power plants

California lawmakers are moving two bills that could matter to homeowners with solar panels or home batteries. A state Assembly committee approved Senate Bills 905 and 913, which now head to the full Assembly and, if passed, to Governor Newsom's desk.

SB 905 would have the state figure out which parts of the electric grid can handle more load by drawing on home batteries and solar systems, rather than spending money to physically upgrade equipment. SB 913 deals with payment: right now, California doesn't pay homeowners when their stored battery power is sent back to the grid during high-demand periods. This bill would set up a rate of compensation for that. Supporters say it would also make the state's virtual power plant program permanent, meaning it wouldn't have to be renewed through the state budget each year.

Virtual power plants work by linking together many home batteries and other devices so utilities can draw on them during peak demand, instead of building more grid infrastructure. California's existing version of this, the Demand Side Grid Support program, was recently extended through the end of 2026 and is being considered for another extension through 2027. Backers of the program say it has already drawn participation from more than 1 gigawatt worth of home batteries. If you have a battery system installed, these bills could eventually affect whether and how much you get paid for sending stored power back to the grid.