Glossary

Virtual Power Plant

A network of distributed energy devices, such as home batteries or thermostats, coordinated by a utility or operator to help manage grid demand.

A virtual power plant is not one physical power plant. It is a coordinated group of smaller devices that can reduce load, shift load, or supply stored energy when the grid needs help. Those devices can include home batteries, smart thermostats, water heaters, EV chargers, and other controllable equipment.

Duke Energy describes its battery control programs as sending signals to enrolled batteries to temporarily adjust operating settings and provide stored electricity back to the grid. Participants receive bill credits when they meet program requirements. See Duke’s Power Manager Battery Control and EnergyWise Home Battery Control pages for the official program language.

For a homeowner, the important question is not the label “VPP.” It is whether the program changes backup reserve settings, how often events can occur, whether opt-outs are allowed, and what bill credit applies to the specific battery and utility account.

See the Duke Energy PowerPair guide for how battery control can relate to solar-plus-battery incentives.

Common questions

Is a home battery part of a virtual power plant?
It can be if the owner enrolls in a utility program that can coordinate the battery during grid events. Enrollment rules and credits depend on the program.
Does a virtual power plant mean the utility owns my battery?
No. In a typical residential program, the homeowner owns the battery but agrees to let the utility temporarily adjust operation under program rules.
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