The Missing Link to VPP Success? Customer Knowledge.

A new report points to a common mix-up that could matter if you are thinking about joining a utility program built around "virtual power plants," or VPPs. These programs let utilities tap into home batteries, heat pump water heaters, and other devices to help balance the power grid, often in exchange for bill credits or incentives. But many homeowners who sign up, or think they qualify, may not actually own the equipment the programs need.

The research, from Franklin Energy, surveyed 350 homeowners and found a big gap between what people think they own and what they actually have. About 25% said they had a heat pump water heater, a type that uses less energy than a standard electric one, but industry data suggests only about 2% of homes actually do. Similarly, 14% said they had a battery storage system, while real ownership is under 1%. Part of the confusion comes from mixing up regular electric water heaters with heat pump models, or confusing everyday battery chargers with a home battery storage system. On top of that, even owning the right device is not enough — to join most VPP or demand-response programs, the equipment usually needs to be Wi-Fi-connected and specifically approved for the program.

If you already own or are considering one of these devices, it is worth checking the specific features, like internet connectivity, that determine whether it can actually be enrolled in a utility program, rather than assuming any water heater or battery qualifies. Some utilities are also starting to tie rebates directly to program enrollment, which can make eligibility clearer at the time of purchase.