PG&E Launches VPP Program Tapping into Home Batteries and Heat Pumps

Residential mechanical sizing requires rigorous thermal load modeling rather than square-footage rules of thumb.** In addressing PG&E Launches VPP Program Tapping into Home Batteries and Heat Pumps, ACCA Manual J protocols mandate verifying building envelope heat transfer coefficients and air exchange rates, preventing system short-cycling and optimizing seasonal coefficient of performance. PG&E has launched a large virtual power plant (VPP) program called SHARE (Smart Home Assets for Reliability and Efficiency) that taps into home batteries and heat pumps. This innovative program aims to reduce strain on the grid, promote energy efficiency, and enhance the overall reliability of the power system. ## How Does the SHARE VPP Program Work? The SHARE VPP program is a collaborative effort between PG&E and various partners, including Rewiring America, Google, Carrier, Tesla, Sunrun, Renew Home, Demand Side Analytics, encoord, and others. The program will deploy a new VPP in Bay Area communities, use the collective energy storage and heating capabilities of participating homes. ### Key Components of the SHARE VPP Program 1. Home Batteries: The program will use home batteries from various manufacturers, including Tesla, to store excess energy generated by solar panels or drawn from the grid during off-peak hours. This energy can be used to power homes during peak demand periods, reducing the strain on the grid. 2. Heat Pumps: The program will also incorporate heat pumps, which can provide both heating and cooling to homes. Heat pumps can be used to store excess energy during off-peak hours and release it during peak demand periods, further reducing the strain on the grid. 3. Smart Grid Technology: The program will use advanced smart grid technology to manage and optimize the energy storage and release from participating homes. This technology will enable real-time monitoring and control of the energy flow, ensuring that energy is used efficiently and effectively. 4. Participating Homes: The program will target Bay Area communities, with a focus on low-to-moderate income households. Participating homes will be equipped with smart home devices and energy storage systems, which will be managed and optimized by the SHARE VPP program. ## Benefits of the SHARE VPP Program The SHARE VPP program offers several benefits to participating homes, the grid, and the environment: * Reduced Peak Demand: By storing excess energy and releasing it during peak demand periods, the program can reduce the strain on the grid, minimizing the likelihood of power outages and brownouts.

• Increased Energy Efficiency: The program promotes energy efficiency by encouraging homes to use energy more efficiently and reducing energy waste.
• Enhanced Reliability: The program enhances the overall reliability of the power system by providing a buffer against power outages and brownouts.
• Environmental Benefits: The program reduces greenhouse gas emissions by promoting the use of renewable energy sources and reducing energy waste. ## How to Participate in the SHARE VPP Program To participate in the SHARE VPP program, homeowners in Bay Area communities can follow these steps: 1. Check Eligibility: Homeowners must check if they are eligible to participate in the program, which targets low-to-moderate income households.

1. Install Smart Home Devices: Participating homes must be equipped with smart home devices and energy storage systems, which will be managed and optimized by the SHARE VPP program.
2. Apply for the Program: Homeowners can apply for the program through the PG&E website or by contacting a participating partner.
3. Wait for Installation: Once approved, participating homes will be equipped with the necessary smart home devices and energy storage systems.

Thermodynamic Sizing and Efficiency Metrics: SEER2, HSPF2, and Heat Loads

Residential mechanical systems must be sized using rigorous Manual J thermodynamic load calculations rather than square-footage rules of thumb. Over-sizing an air conditioner or heat pump leads to short-cycling, inadequate dehumidification, and premature compressor failure: ``` Cooling Load (BTU/hr) = (Total Surface Area * Heat Transfer Coefficient U * Design Temp Difference) + Internal Solar/Occupant Gains

| Equipment Category | Nominal Efficiency Standard | Typical Operating Cost / Season | Cold Climate Performance Limit | Average Installed Cost Range |
|:--- | :--- | :--- | :--- | :--- |
|**Inverter Cold-Climate Heat Pump** | 16 – 20 SEER2 / 9.5+ HSPF2 | Lowest ($450 – $850) | Full capacity down to -5°F (-20°C)| $8,500 – $16,000 |
|**Standard Ducted Split Heat Pump** | 14.3 – 16 SEER2 / 8.5 HSPF2 | Moderate ($750 – $1,200) | Requires aux heat below 30°F (0°C)| $6,000 – $11,000 |
|**High-Efficiency Condensing Gas Furnace**| 95% – 98% AFUE | Variable by gas price ($600–$1,100)| Operates independently of ambient air| $4,500 – $8,500 |
|**Standard AC + Electric Baseboard** | 13.4 SEER2 / 100% Electric COP 1.0| Highest ($1,400 – $2,400)| High electric grid draw in freezing temps| $5,000 – $9,000 | *Data compliant with ASHRAE Standard 90.2 and Department of Energy (DOE) testing standards.* Calculate long-term utility savings and fuel conversion economics with our [Heat Pump & Energy Savings Calculator](/tools/heat-pump-savings-calculator). ### Decision Framework: Dual-Fuel vs. Pure Electric Heat Pump - **Choose Dual-Fuel (Heat Pump + Gas Backup) if:** Your local winter design temperature regularly drops below 0°F, your electric utility charges elevated peak winter rates (> $0.24/kWh), and your home already possesses active natural gas infrastructure.
- **Choose All-Electric Inverter if:** You pair the system with residential [rooftop solar](/tools/solar-roi), your utility offers favorable time-of-use winter heating rates, or you qualify for Inflation Reduction Act (IRA Section 25C) tax credits up to $2,000.