Solar, Solar Energy, Solar Panels, Solar Power, YSG Solar
September 10, 2020

Virtual Power Plants (VPPs) allow aggregated pools of distributed energy resources (DERs) such as solar, energy storage, HVAC controls, and other resources to be operated in parallel. The end result is energy generation and load management controls that can help balance the distribution system.

This model of the mixed-asset VPP allows the system to take advantage of the strengths of each of its different components. The implementation of solar energy alongside behind-the-meter battery storage systems is capable of providing a wide range of benefits:

  • Batteries offer capacity to the grid during peak demand periods

  • They reduce customers’ on-time varying rates

  • They reduce costs during peak price periods

  • Onsite power offers resilience when the grid goes down

Battery storage systems are becoming an increasingly popular component of the energy market thanks to a growing awareness of these benefits, along with declining cost of lithium-ion batteries. This growth of the battery sector is a big factor in moving towards mixed-asset aggregation for VPPs.

The monetization of solar and storage assets under a VPP model allows residential customers to earn compound incentives through a combination of lower utility bills each month and direct payments for their grid support. 

In addition to these market incentives for residential consumers, the encouragement of regulators will be necessary in the further development of solar and storage technologies. Deployment of these technologies must be supported by regulatory bodies in order to thrive and boost the growth of renewable energy across the United States. 


Further innovation along with the implementation of other smart technologies will also be a part of the move to establish VPPs in the future. Technology like EV chargers and water heaters could be part of mixed-asset VPPs moving forward, allowing us to maximize the benefits of the model.

Learn more about how YSG Solar is helping VPP developers and others construct and operate virtual power plants on Long Island, New York. Send us an email, or call at 212.389.9215 to get started with a solar project of your own, or just learn a little more about Long Island solar.

YSG Solar is a project development vehicle responsible for commoditizing energy infrastructure projects. We work with long-term owners and operators to provide clean energy assets with stable, predictable cash flows. YSG's market focus is distributed generation and utility-scale projects located within North America.