How permitting reform could boost VPPs

A group of senators has introduced a bill, running more than 400 pages, mostly focused on speeding up permits for big energy projects like power plants and transmission lines. But part of it also deals with something closer to home: virtual power plants, or VPPs. These are networks of home devices — things like batteries, smart thermostats, or rooftop solar — that get linked together and used to help balance the electric grid, sometimes earning their owners money or credits in return.

The bill would require grid operators to let these networks of home devices sell power and grid services in wholesale electricity markets within 18 months of becoming law. A federal order back in 2020 tried to do something similar, but adoption has been slow, with some grid regions pushing their compliance dates to 2028 or beyond. The new bill would also stop utilities from requiring extra physical meters on home devices just to participate, which should lower costs, and would let devices get paid for sending power back to the grid.

The bill will not come up for a vote until after the November midterms, so nothing changes yet. Even supporters caution that turning these rules into real programs will take time, since utilities and grid operators still have to work out technical details like how to measure performance and how much credit home devices get for the power they provide. If it does move forward, homeowners with solar, batteries, or smart home equipment could eventually have more options to get paid for letting the grid use them.