Google, Tesla, Pacific Gas and Electric (PG&E;), and Sunrun are launching a new virtual power plant (VPP) in California. Announced 3 September, the initiative also includes Rewiring America, Carrier Global, Renew Home, Demand Side Analytics, encoord, and others. PG&E;'s Smart Home Assets for Reliability and Efficiency (SHARE) programme will combine home battery energy storage systems, smart devices, and battery-enabled heat pumps to reduce energy use during periods of high demand in Santa Clara and Alameda counties. The programme is fully funded by Google.
PG&E; is working with Tesla, Sunrun, and Renew Home to enroll approximately 21,000 existing flexible energy devices. Carrier is the launch partner for deployments, supplying its battery-enabled heat pump solution. Through SHARE, customers can receive US$5,000 off the Carrier system, while 25 households will receive US$10,000 off. A spokesperson said the programme can deploy 12MW during peak electricity demand and that participating Sunrun customers benefit from US$200 per battery enrolled. The resource is expected to begin supporting the grid as early as this fall and run through 2027.
The proof-of-concept is designed to create additional capacity, support reliability, and help put downward pressure on rates while participating households save money through smarter energy management. PG&E; said the model combines enrollment of existing home energy devices with regional deployment of privately funded new electrification technologies. Initial findings are expected late this year or early 2027. The announcement follows similar collaborations: Sunrun, Tesla, and Renew Home agreed in June to deliver more than 16GW of flexible energy capacity to PJM hyperscalers and utilities.
What remains unknown is how the programme will perform against its reliability and cost goals, and whether the 12MW deployment figure will be sustained beyond the proof-of-concept phase. The dossier does not specify total programme cost, enrollment timelines for each device category, or how Google's funding will be allocated among partners. Two California VPP bills, SB 905 and SB 913, have passed the legislature but are still awaiting Governor Gavin Newsom's signature, leaving the regulatory environment for customer-sited battery exports partly unresolved.