Virtual Power Plants: Get Paid to Power the Grid

Once on hourly pricing, three financial benefits stack on top of each other:

1. Upfront Battery Rebate — $300 per kWh

(ComEd Distributed Generation Rebate)

When you purchase and install a qualifying home battery storage system and switch to hourly pricing, you’re eligible for a $300 per kWh rebate on the nameplate capacity of the battery.

Example: A 13.5 kWh Tesla Powerwall = $4,050 back in your pocket at purchase.

2. Ongoing Annual VPP Compensation

(ComEd VPP Program)

Once enrolled, you earn an annual payment for committing your battery’s power capacity to the VPP program. This is a capacity-based payment — meaning you’re compensated for making your battery available to ComEd, not per individual dispatch event.

How dispatch events work: ComEd calls on the VPP during peak demand periods — typically a 3:00–6:00 PM window, Monday through Friday, primarily during the summer months (roughly May through October). Expect anywhere from 30 to 60 dispatch events per year, each lasting up to a couple of hours. Your battery handles everything automatically; you won’t notice anything in your home during these events.

How the payment is calculated: The CRGA Act sets a minimum floor of $10 per kW of average dispatch power per year. This is based on the average kilowatts your battery contributes across all dispatch events — not multiplied directly against your battery’s kWh storage size.

Real-world example using a single Tesla Powerwall 3:

For two Powerwall 3s:

Important context: The $10/kW figure is the statutory minimum floor set by the CRGA Act. ComEd’s new tariff, due to be filed by June 1, 2026, may set a higher rate. The monthly figures above are conservative estimates based on current law.

The VPP payment on its own is modest — but it’s one piece of a much larger financial picture. When combined with the upfront rebate and ongoing bill savings from hourly pricing, the total annual value to the customer is significantly higher (see the summary table below).

3. Peak-Hour Energy Export Credits — The Big Opportunity for Solar Owners

(Rate BESH Net Metering — especially valuable if you already have solar)

This is where the financial picture changes significantly — and it’s the reason adding a battery is such a smart move for homeowners who already have solar panels.

On ComEd’s standard net metering, excess solar power exported to the grid is credited at a low fixed rate — roughly the utility’s avoided cost, which is well below what you pay per kWh. You’re essentially selling power back at wholesale prices whether it’s noon or 5 PM.

On Rate BESH (hourly pricing), it works differently. Exports are credited at the real-time market price at the exact hour they occur. During peak summer afternoons — right when VPP dispatch events happen — those prices can be dramatically higher:

Here’s the problem without a battery: Solar panels generate the most power midday when prices are average — and your home has already exported that power long before the 3–6 PM price spike hits.

Here’s the opportunity with a battery: Instead of exporting surplus solar power at midday rates, your battery stores it and releases it during the high-value late afternoon peak window. You’re effectively selling the same solar energy at 3–6× the price — and getting the VPP capacity payment on top of it.

ComEd’s own data shows that solar customers on hourly pricing save an average of 30% on energy supply costs compared to the standard fixed rate — and that’s before factoring in strategic battery dispatch during peak hours.

If you already have solar and don’t yet have a battery, adding one now positions you to:

• Capture peak-hour export value that your system is currently missing
• Qualify for the $300/kWh upfront battery rebate
• Enroll in the VPP program for the annual capacity payment
• All while switching to BESH at no cost

4. Ongoing Bill Savings from Hourly Pricing

(Rate BESH Benefit — battery-only customers)

Even without solar, a battery on hourly pricing can lower your monthly bill by charging automatically during cheap overnight hours (sometimes as low as 1–2¢/kWh or even negative) and covering your home’s peak-hour usage — so you’re buying less power at the expensive times.

The combination of all benefits can significantly improve the payback period on your battery investment.