Nearly 100 home batteries in Ann Arbor, Mich., will be linked together in a pilot project. The project will test whether coordinated home batteries can help the electric grid handle rising power demand more cheaply than building new capacity.

DTE Energy and battery manufacturer Sonnen say the launch is Michigan's first virtual power plant pilot using residential batteries.

Here's what to know

The two-year project, announced Oct. 29, has received Michigan Public Service Commission approval, according to a DTE Energy and Sonnen news release published by The Manila Times. Thrive Collaborative's carbon-neutral Veridian at County Farm development will host the test.

DTE will evaluate the system, looking for lower system costs, better reliability, and the ability to meet peak demand. Sonnen will coordinate the participating batteries for grid support instead of having each system operate independently.

The pilot doesn't promise immediate reductions in electricity bills. Its findings will help clarify whether coordinated home batteries could benefit customers over time.

For homeowners interested in exploring similar solutions, EnergySage offers information about home battery storage options, including competitive installation estimates. EnergySage has teamed up with electrification brand Qmerit to help homeowners get the best price on home battery storage solutions.

More background

Veridian sits on a 14-acre site beside County Farm Park and includes 170 mixed-income homes, according to the press release. The development is built to be fossil-fuel-free, with a Sonnen battery system in every home.

Outside of battery storage, the community features rooftop solar, geothermal energy, advanced electric heat pumps, all-electric appliances, and electric vehicle-ready charging. The homes are designed as energy systems that balance their own needs and withstand disruptions.

Storage also helps households save money on energy. DTE's pilot will evaluate this benefit at the grid level.

What's being done?

The Michigan Public Service Commission recommends better use of grid assets and increasing participation from distributed energy resources, including home batteries. The project follows that direction.

DTE's electric utility supplies electricity to 2.3 million Southeast Michigan customers, while Sonnen and Thrive Collaborative have spent years working to establish the development as an example of a community-scale residential virtual power plant, according to the release.

DTE Energy President and Chief Executive Officer Joi Harris emphasized the project's focus on affordability and reliability.

"That's why we're exploring innovative ways to make better use of energy resources," Harris explained, per The Manila Times. "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."

For readers looking for another strong battery backup option, Pila's plug-and-play batteries are priced at a fraction of what a whole-home backup system would cost.

Where can I learn more?

Michigan's pilot is one of several efforts to coordinate household batteries and other devices to support the grid.

• In California, PG&E is tapping 21,000 home devices to ease peak demand through a virtual power plant.

• In Vermont, 5,500 leased home batteries became the state's biggest power source.

• Sunrun and Tesla tapped California home batteries during a heat wave, delivering a record 580 megawatts.

• California Powerwall owners supplied 601 megawatts to the grid, rivaling a utility power plant.

• In the UK, battery owners say virtual power plants added £150-plus in export income.

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