Virtual power plants rely on distributed energy resources like batteries, EVs, and smart thermostats, but participation is skewed toward affluent homeowners who can pay upfront. As of 2026, only about 28% of U.S. homes have smart thermostats, and far fewer join demand-response programs. This access gap threatens grid flexibility goals, even as 34 states have programs to use DERs for affordability and at least a dozen are advancing VPP legislation.
Inclusive utility investment offers a fix: utilities pay for the equipment and recover costs through a fixed monthly charge that is less than the customer's estimated bill savings. Illinois' new Equitable Energy Upgrade Program is the first framework of its kind, enabling utilities to cover the financing gap for solar and storage. For example, a 7-kW solar and 13.5-kWh system costs $34,530 upfront, but after rebates the gap is $11,913—which the utility can fund, with recovery capped at 80% of savings.
When enrolled in a VPP, that same system can generate $770 per year from PJM capacity and energy markets, split between household and utility. This revenue accelerates cost recovery and lowers bills from day one, with ownership transferring to the homeowner once costs are paid. The source argues this creates a virtuous cycle: broader DER access enables larger VPPs, which in turn reduce infrastructure upgrades and keep rates down for everyone. Illinois may become the first state to prove the model at scale, though the piece is an opinion and notes that other states are watching closely.