Google-Funded Virtual Power Plant Launches in California with Tesla and Sunrun

Google and Pacific Gas & Electric (PG&E) have partnered with Tesla, Sunrun, and other companies to launch a new virtual power plant (VPP) program in California. The VPP, called SHARE, will use home battery energy storage systems (BESS), smart devices, and battery-enabled heat pumps to reduce energy consumption during peak hours.

The program will be fully funded by Google and is expected to begin supporting the grid as early as this fall, with initial findings expected in late 2026 or early 2027. SHARE aims to demonstrate how targeted investments can improve reliability, expand capacity, support new energy users, and make better use of home energy resources.

The VPP will enroll approximately 21,000 existing flexible energy devices into the program, allowing participating households to manage their energy costs and earn rewards for using smart features during peak hours. Carrier Global is providing its battery-enabled heat pump solution as part of the initiative.

Sunrun customers who participate in the program can receive up to $10,000 off the cost of a Carrier system, while PG&E claims that the VPP can deploy 12MW during periods of peak electricity demand.