PG&E and Google Launch Virtual Power Plant Pilot in Bay Area

The project creates a coordinated network of residential batteries, smart thermostats, and advanced heat pumps that function as a distributed power plant. By shifting energy usage during peak periods, the utility hopes to improve reliability and reduce the need for traditional infrastructure upgrades. PG&E is collaborating with partners including Tesla, Sunrun, and Renew Home to enroll approximately 21,000 existing devices, with the system expected to begin grid support in fall 2026.

Carrier is serving as the primary hardware partner, deploying battery-enabled heat pumps that automatically store and manage energy. Rewiring America will coordinate the installation process and homeowner enrollment. The program, which runs through 2027, is structured to demonstrate how localized residential technology can solve broader transmission constraints. If successful, the model could scale to include commercial and industrial sectors, providing a blueprint for utilities to optimize grid capacity through consumer-side technology.