Virtual Power Plants & Smart Energy in Texas

What is a virtual power plant?

A virtual power plant (VPP) is a network of home batteries and other devices that a company controls together to support the grid at peak times, usually in exchange for credits or lower rates. Your battery may discharge a bit during grid stress, while a reserve is typically kept for your own backup. Texas is a national leader in residential VPPs.

Sources: Modo Energy — ERCOT’s ADER pilot: how home batteries operate in the…

Also asked as: virtual power plant texas · vpp battery program

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What is ERCOT’s ADER pilot?

ADER (Aggregated Distributed Energy Resource) is ERCOT’s pilot that lets groups of home batteries bid into the Texas wholesale market as one resource. It grew from 8 MW of discharge capacity in June 2025 to 171 MW in September 2026, and ERCOT raised the cap to 500 MW in March 2026. Companies such as Base Power and Tesla participate.

Sources: Modo Energy — ERCOT’s ADER pilot: how home batteries operate in the…

Also asked as: ader pilot ercot · aggregated distributed energy resource

Can my battery earn money in Texas?

Possibly — some Texas retail providers and programs pay credits or offer special rates for letting them use your battery during grid peaks. Payments depend on the program, your provider and your battery brand. Ask how much reserve is kept for your backup, how often the battery is dispatched, and how credits appear on your bill.

Sources: Modo Energy — ERCOT’s ADER pilot: how home batteries operate in the…

Also asked as: get paid for battery texas · tesla electric texas

Will a VPP drain my battery before an outage?

Well-run programs keep a backup reserve you can set and often stop dispatching when severe weather is forecast. Read the program’s reserve rules and whether you can opt out of events. If backup is your top priority, set a high reserve.

Also asked as: vpp backup reserve