Michigan-based solar developer DTE Energy has formed a partnership with commercial battery firm sonnen, launching the Mitten State’s first residential battery virtual power plant (VPP).

Located in Ann Arbor’s Veridian at County Farm housing development, the pilot is a proof of concept for battery-based residential VPPs going forward, the companies say. Veridian at County Farm is a carbon-neutral community, with the VPP further helping reduce residential energy costs, create grid flexibility and resiliency, and raise the usage of renewable energy in southern Michigan.

The pilot will run for two years, virtually connecting a group of nearly 100 homes through sonnen’s battery system and VPP technologies. According to the Michigan Public Service Commission, the pilot program will allow DTE to evaluate this approach in solving the growing issue of spiking electrical demand.

“Across Michigan, families are feeling the pressure of higher costs for groceries, housing, childcare and other everyday necessities, and we know affordability matters more than ever,” says DTE Energy president and CEO Joi Harris. “That’s why we’re exploring innovative ways to make better use of energy resources. This pilot is an opportunity to test an approach that could ultimately provide a lower-cost way to meet growing energy needs and strengthen reliability.

“It’s exactly the kind of forward-thinking approach that has the potential to help keep energy affordable for customers over the long term.”

DTE Energy representatives say the pilot will give crucial information and statistical feedback, especially during periods of high demand. The company will make use of those insights, determining if this concept could scale up to become a major part of Michigan’s energy future.

Meeting growing demands

Veridian currently features 170 homes, and is designed to be completely free of fossil fuels, officials from housing developer Thrive Collaborative say. Each unit works as its own resilient, self-balancing energy ecosystem, bringing together geothermal energy, electric heat pumps, EV charging, electric appliances, and rooftop solar arrays.

The new battery VPP is “the next chapter in Veridian’s energy playbook,” according to DTE representatives. Now, the community will serve as a model for development-based residential VPPs throughout the state.

“Veridian was designed from the outset around a fundamentally different approach to energy,” says Matt Grocoff, founder of Thrive Collaborative. “This pilot marks a historic moment for Michigan as DTE’s first VPP pilot project, and a defining moment for Veridian. We’re incredibly proud that this community can serve as the place where this vision can move from concept to reality, and grateful to everyone involved for helping bring it to life.”

The VPP aims to aid Michiganian utility firms in meeting their energy needs, especially at such a crucial time for the grid. This particular approach has the potential to not only improve reliability, but create short- and long-term affordability benefits for customers involved.

“The Veridian VPP pilot will be a true demonstration of the decentralized, digitalized and decarbonized energy system of the future,” said Blake Richetta, Chairman and CEO of sonnen Inc. “By coordinating intelligent batteries across an entire community, we are turning individual home batteries into a pooled, grid-interactive resource that responds to grid needs in real time.

“(DTE’s) innovative spirit and firm resolve are making Michigan’s first grid interactive VPP community a reality, and that is a major achievement.”

— Solar Builder magazine