Residential solar and storage installers do much more than just install equipment. They step into a customer’s living room and talk about comfort, money and safety. That’s why communication about grid services and virtual power plants (VPPs) has never been more critical. These aren’t abstract “grid assets” – they’re batteries in someone’s garage, attached to a roof they paid for, in a house where they want control over what happens.
Many homeowners are worried about extreme weather, watching electricity prices climb and looking for ways to take control of outages and bills. There are more VPPs, rebates, incentive programs and financing options than ever, but most homeowners only hear about them from one place: the solar installer. That’s a recipe for more questions about batteries and VPPs and an opportunity for contractors who explain them clearly.
The incentive pool customers wade in
One reason communication matters so much is that the incentive environment is, frankly, a mess. There are now multiple layers of support, including federal tax credits, state rebates, city or county programs, utility incentives, as well as separate budgets for efficiency, demand response, innovation and resiliency. Add grid services programs and a variety of financing products, often run by entirely different entities, and the picture becomes even more confusing.
Even people in the industry struggle. When I wanted to install a heat pump at my home in Denver, I ended up stacking a federal incentive, a Colorado rebate, a Denver rebate and an Xcel Energy rebate. I relied almost entirely on my installer to understand what I qualified for. Tools like Rewiring America try to simplify the landscape, but homeowners still need someone to translate that into action.
That “someone” is usually the installer.
Where communication breaks down
In most sales flows, it’s not the installer explaining the VPP, it’s the salesperson. That salesperson might work with multiple installers or be part of a third-party sales org. The homeowner may see ads from a manufacturer, call an installer, meet with a salesperson, and then have another company do the installation months later. From their perspective, it’s a blur.
Even when VPP programs are sold, communication often stops after the signature. Some programs offer significant upfront incentives, which is exciting to the homeowner. Then a few months go by before they receive emails about “events” and “dispatches.” By then, many may have forgotten they joined a VPP program.
Homeowners need clear, consistent communication from the sales pitch through installation and into ongoing operations. Utilities, program managers, aggregators and manufacturers all share responsibility for supporting installers with better materials, proposal tools and education.
A simple, kitchen-table way to explain VPPs
A basic VPP explanation is that it’s a grid service program that pays the customer for access to their battery a few times a year while still keeping backup power available for the home.
Two common questions from homeowners include: 1) Am I getting paid?, and 2) Am I still in control?
Installers should address both questions directly. Many programs allow homeowners to opt out of individual events. Some allow different participation levels; they may share 80, 60 or 40% of the battery, with corresponding changes in earnings.
It may help to compare it to a thermostat demand-response program: The utility might adjust an AC a few degrees a handful of times each summer. The resident still owns the thermostat. They can still override it. However, if they don’t, it’s better for everyone and they’ll earn more.
One caveat: In many third-party solar and storage ownership models, the system owner – not the homeowner – has the rights to grid-services revenue. Homeowners may not realize how much control they’ve ceded until something happens and they call the OEM, thinking it’s a technical issue. Setting expectations up front about who owns what and who decides how the battery participates can prevent frustration later.
What homeowners care about
In SolarEdge surveys and program experience, three motivations repeatedly come up when homeowners join VPPs:
- Financial value: Upfront incentives help lower the cost of the battery, and participation payments add ongoing value.
- Environmental impact: Many homeowners appreciate knowing their battery helps avoid firing up fossil-fuel plants during peak periods.
- Community benefit: Messages like “you’re helping keep the lights on for your neighbors” resonate, especially in places that have experienced blackouts or weather-related outages.
On the flip side, a recurring fear is often: “Is the utility taking my power?” Language matters. Emphasize that the utility is paying for a service, and that events are infrequent and often predictable. If possible, provide examples of past events to help homeowners understand what to expect.
Be a guide, not just a seller
Contractors who excel at communicating VPP value don’t treat it as an upsell. They make it part of the system story:
- Here’s how the system works.
- Here’s how we keep you comfortable and in control.
- Here’s how you can earn money and support the grid.
- Here’s who to contact if you have any questions.
In a world of confusing incentives and growing grid stress, homeowners want someone they trust to make sense of it all. If the solar installer can be that guide, they’re not just installing hardware, they’re building long-term customer relationships and tapping into new revenue streams.
If customers are already investing in solar and a battery, a VPP is how to get more value out of it while staying in control. Contractors who communicate that clearly will win the next wave of residential storage business.
Tammy Sinensky is senior manager of grid services product – North America for SolarEdge. She has a master’s degree in Mechanical Engineering with a focus in Renewable Energy Systems and Energy Systems Modeling as well as an Environmental Studies Graduate Certificate in Energy Analysis and Policy.
