Sunrun and PG&E Complete First Season of Innovative Residential Distributed Power Plant

Rhea-AI Summary

Sunrun and Pacific Gas and Electric Company (PG&E) formed a first-of-its-kind partnership to provide consistent, reliable clean energy to California's power grid through home solar-plus-storage systems. The Energy Efficiency Summer Reliability Program, also known as Peak Power Rewards, involved nearly 8,500 solar-plus-storage residential systems peaking at 32 megawatts. Sunrun managed the fleet of home batteries to provide power to PG&E, achieving an average of 27 megawatts during peak hours for over 90 consecutive days. The program was operational within six months of contract signature, achieving a customer participation rate and power supply volume never before accomplished. Enrolled customers received an upfront payment of $750 and a free smart thermostat for participating. PG&E is the nation's utility leader in both rooftop solar and behind-the-meter storage, with nearly 820,000 customers connected to the electric grid with rooftop solar and nearly 75,000 customers having installed and connected storage systems to the grid in PG&E's service area. Sunrun is the nation's largest provider of distributed power plant programs and is exploring future programs with PG&E.

Energy Market Analyst

The collaboration between Sunrun and PG&E represents a significant development in the energy sector, particularly for distributed energy resources (DERs). The ability to aggregate solar-plus-storage systems to function as a distributed power plant not only showcases the scalability of residential energy storage but also underscores the potential for DERs to enhance grid stability and reliability. This is especially pertinent in California, where energy demand often peaks due to climatic conditions such as heatwaves.

From an energy market perspective, the rapid deployment and effectiveness of the Peak Power Rewards program could serve as a blueprint for other utilities and states. The program's success in enrolling 8,500 customers and consistently providing an average of 27 megawatts during peak hours illustrates consumer willingness to participate in energy-sharing initiatives. Moreover, the program's design, offering upfront payments and smart thermostats to participants, provides a model for incentivizing customer engagement in grid support services.

As DERs continue to proliferate, utilities may increasingly rely on such partnerships to manage load and prevent outages, which could reduce the need for investment in traditional power plants and infrastructure. This shift could also influence energy market dynamics, with potential implications for energy pricing and the valuation of utility companies that successfully integrate DERs into their grid management strategies.

Financial Analyst

The partnership between Sunrun and PG&E is a noteworthy event for investors, highlighting Sunrun's capacity to monetize its fleet of home batteries and contribute to grid stability. The financial implications for Sunrun include not only revenue from the partnership but also the potential for increased market share as the company positions itself as a leader in the storage-first approach to clean energy.

For PG&E, the initiative could translate into operational cost savings by deferring or avoiding capital expenditures on new generation capacity. The program's success in providing consistent power during peak demand periods may also enhance PG&E's regulatory standing and customer satisfaction, potentially impacting its stock performance in a positive manner.

Investors should also consider the long-term implications of such partnerships on the traditional utility business model. As distributed power plants become more common, utilities that adapt and forge strategic partnerships could see improved resilience and financial stability, while those that fail to evolve may face increased competitive pressures and regulatory challenges.

Renewable Energy Expert

The Sunrun and PG&E partnership is a landmark in the renewable energy landscape, signifying a shift towards a more decentralized and resilient energy system. The deployment of distributed power plants comprised of residential solar-plus-storage systems is an innovative approach that could revolutionize how energy is produced and consumed.

By leveraging software to manage the discharging of home batteries, Sunrun is at the forefront of smart grid technology, which is essential for integrating intermittent renewable energy sources. This technology enables the provision of on-demand power and supports grid stabilization without the participants' active involvement, a key advantage over traditional demand response programs.

The environmental impact of such programs is substantial, as they reduce reliance on fossil fuel-powered peaker plants, which are typically used during periods of high electricity demand. By displacing these plants, distributed power plants can significantly lower greenhouse gas emissions and contribute to California's aggressive clean energy goals.

First-of-its-kind partnership between California's largest utility and nation's leading provider of clean energy as a subscription service helped strengthen the state's energy grid with home solar-plus-storage systems 

OAKLAND, Calif., Jan. 29, 2024 /PRNewswire/ -- Peaking at nearly 32 megawatts from 8,500 solar-plus-storage residential systems, Sunrun and Pacific Gas and Electric Company (PG&E) customers provided consistent, reliable clean energy to California's power grid through the summer and fall of 2023 through an exclusive partnership between PG&E and Sunrun (Nasdaq: RUN), the nation's leading provider of clean energy as a subscription service.

The Energy Efficiency Summer Reliability Program, also known as Peak Power Rewards, is a comprehensive and fully operationalized residential solar and storage distributed power plant. The program quickly achieved its maximum enrollment of 8,500 customers and provided a consistent average of 27 megawatts of power during evening peak hours for more than 90 consecutive days. With an instantaneous peak output of nearly 32 megawatts, the program frequently supplied the grid with up to 30 megawatts – sufficient power for more than 20,000 homes.

Sunrun managed the participating fleet of home batteries to provide power to PG&E in the same way that a centralized, traditional power plant would. However, Peak Power Rewards was operational within six months of contract signature, a timeframe not possible when building traditional power plants.

"The Peak Power Rewards program achieved a customer participation rate and power supply volume that's never been accomplished before," said Sunrun CEO Mary Powell. "PG&E was able to confidently rely on the renewing daily resource of Sunrun's fleet of home solar and storage systems. We are rapidly transitioning to a storage-first company and the results of this partnership highlight the unique capability that distributed power plants provide communities."

Sunrun's distributed power plant programs use software to seamlessly manage the discharging of thousands of home batteries onto the grid in coordination with utility needs, making it so customers don't need to take any action. Peak Power Rewards created a favorable situation for PG&E, Sunrun and their shared customers. Enrolled battery systems discharged energy back to the grid every day from 7 p.m. to 9 p.m. during the months of August through October, a critical window when energy needs are highest in California. In exchange, customers received an upfront payment of $750 and a free smart thermostat for participating. Batteries enrolled in the program retain enough energy to meet personal, essential needs in the event of a local power outage in their area.

"Working together with partners like Sunrun is a win-win-win for our customers, the electric grid and California as a whole. Solar-plus-storage plays a significant role in California's clean energy future and we're proud of our customers who are leading the charge with their clean energy adoption. Every day, we're looking at new and better ways to deliver for our hometowns while ensuring safety, reliability and resiliency for our customers," said Patti Poppe, CEO of PG&E Corporation.

PG&E is the nation's utility leader in both rooftop solar and behind-the-meter storage, having connected nearly 820,000 customers with rooftop solar to the electric grid totaling approximately 8,039 megawatts of capacity and with nearly 75,000 PG&E customers having installed and connected storage systems to the grid in PG&E's service area, totaling more than 670 megawatts of capacity. These customers could on average rely on over 10 hours of backup power using their storage system, a critical resource for grid resiliency, particularly during storms, heatwaves, and emergency energy alerts.

"What is happening in California will soon need to be replicated across the country," Powell said. "Residential solar-plus-storage systems networked together as distributed power plants are answering the demand call by providing flexible, on-demand power stabilization while also guarding against increasing rates."

Sunrun is the nation's largest provider of distributed power plant programs with years of experience managing a fleet of tens of thousands of home batteries and assisting utilities with demand response planning. Unlike traditional power plants, Sunrun's distributed power plants can quickly be set up and operationalized without the need for costly new infrastructure, as was the case with the PG&E partnership. Sunrun and PG&E are currently exploring possibilities for future programs that will jointly benefit customers, electric grid resiliency, and Californians overall.

About Sunrun
Sunrun Inc. (Nasdaq: RUN) revolutionized the solar industry in 2007 by removing financial barriers and democratizing access to locally-generated, renewable energy. Today, Sunrun is the nation's leading provider of clean energy as a subscription service, offering residential solar and storage with no upfront costs. Sunrun's innovative products and solutions can connect homes to the cleanest energy on earth, providing them with energy security, predictability, and peace of mind. Sunrun also manages energy services that benefit communities, utilities, and the electric grid while enhancing customer value. Discover more at www.sunrun.com

About PG&E
Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE: PCG), is a combined natural gas and electric utility serving more than sixteen million people across 70,000 square miles in Northern and Central California. For more information, visit pge.com and pge.com/news  

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/sunrun-and-pge-complete-first-season-of-innovative-residential-distributed-power-plant-302046740.html

SOURCE Pacific Gas and Electric Company

FAQ

What is the Energy Efficiency Summer Reliability Program also known as?

The Energy Efficiency Summer Reliability Program is also known as Peak Power Rewards.

How many solar-plus-storage residential systems were involved in the partnership?

Nearly 8,500 solar-plus-storage residential systems were involved.

What was the peak output of the program?

The program peaked at nearly 32 megawatts.

What did enrolled customers receive for participating in the program?

Enrolled customers received an upfront payment of $750 and a free smart thermostat for participating.

How many customers are connected to the electric grid with rooftop solar in PG&E's service area?

Nearly 820,000 customers are connected to the electric grid with rooftop solar in PG&E's service area.

What is Sunrun exploring with PG&E?

Sunrun and PG&E are exploring possibilities for future programs that will jointly benefit customers, electric grid resiliency, and Californians overall.