The Ultimate Guide to VPPs – Supporting Your Community and Increase Savings.

Getting Started

The way we produce and use electricity is changing — and Massachusetts is leading the way. One of the most exciting opportunities is for homeowners with solar + battery storage to join a Virtual Power Plant (VPP). A VPP, sometimes called a Demand Response Program, turns thousands of homes into a network of backup energy resources that not only keep the grid stable but also generate cash payments for the individual VPP members based on how much energy they contribute.

What Is a Virtual Power Plant (VPP)?

A Virtual Power Plant isn’t a single facility. It’s a network of homeowners and businesses with solar panels, batteries — all connected through smart software. Together, these systems act like a virtual power station, storing energy when it’s plentiful and sharing it with the grid when it’s needed most. For the system owner, that means cash payments for sharing stored energy at times when the grid needs support most.

How does the VPP work?

During a peak demand event, the VPP operator sends a discharge signal to the enrolled battery devices. Demand events are only scheduled on summer afternoons from June-September, up to a max. of 60 events per year. Each event is two or three hours in length. All functions happen automatically with no need for user intervention, though it is possible to skip events. At the end of the year, system owners are paid cash for their contributions to the events.

Why VPPs Matter in Massachusetts

Massachusetts has ambitious clean energy goals, some of the nation’s highest electricity costs, and a grid that struggles during peak demand. VPPs are key to meeting those challenges because they:  

• Reduce strain on the grid during summer peaks and winter storms
• Help avoid expensive and polluting fossil fuel “peaker plants”
• Increase resilience by making the grid less vulnerable to outages

Who is eligible and how do you Join the VPP program?

The Massachusetts VPP program is called Connected Solutions, and it is currently open to customers of Eversource and National Grid. To join, you need to have a qualifying battery system and enroll in the program. Participants may qualify for 0% interest MassSave loans to purchase battery equipment. Annual incentive payments are approximately $700–$1,500+ per year. Larger batteries can output more energy and earn higher incentive payments.

What other battery incentives are available in MA?

The Clean Peak Standard is another incentive program that can be stacked with Connected Solutions — meaning you can earn from both at the same time. 

Unlike Connected Solutions, which actively calls on your battery during specific peak demand events, Clean Peak works in the background as a passive program. It measures how your battery “breathes” throughout the day when it’s operating in self-supply mode: 

• Daytime: Your battery charges up with solar power. 
• Late afternoon/early evening: Your battery discharges and supplies energy during the highest-demand hours on the grid. 
• Result: You earn Clean Peak Certificates, which convert into cash payments. 

The exact earnings depend on your battery size and how you operate it. 

Valley Solar is one of the only Massachusetts installers with specialized training in Clean Peak metering and enrollment. Our team has already enrolled hundreds of customers, ensuring they receive maximum benefits. Most installers in the state are unfamiliar with the program’s technical requirements and simply don’t offer it.  Valley Solar ensures your system is optimized so you receive the full benefits. 

The Bottom Line

Virtual Power Plants represent the future of energy: resilient, local, and dynamic. Let Valley Solar connect your home to that future today – with whole-home backup, meaningful incentive payments, and peace of mind for years to come. 

Get a Quote with Valley Solar today and learn how a complete home energy system with solar + storage can protect your home and pay you back.