Virtual Power Plants Launch in ERCOT: Battery VPPs and EV Reuse Reshape Texas Grid
Two groundbreaking virtual power plant (VPP) programs launched in the Texas ERCOT market within 24 hours this week. SOLRITE Energy debuted a battery-only VPP using sonnen home storage systems, while B2U Storage Solutions brought its first 24 MWh repurposed EV battery project online near San Antonio. These launches arrive as Texas grid-scale battery storage hits 14 GW — nearly double the capacity from a year ago — and ERCOT projects 9.6% load growth in 2026, the highest of any US grid operator. For commercial energy buyers, VPPs represent a new frontier in demand-side participation and cost management.
Two VPPs in 24 Hours: What Launched
On February 24, 2026, SOLRITE Energy launched the first battery-only virtual power plant program in the Texas ERCOT market. The program uses sonnen energy storage systems installed in homes — crucially, it targets both homes without rooftop solar and those with existing arrays seeking better buyback rates. This is a meaningful departure from solar-dependent VPP models.
Simultaneously, B2U Storage Solutions brought its first project online near San Antonio: a 24 megawatt-hour facility that repurposes used electric vehicle batteries to store and dispatch electricity back into the ERCOT grid. The concept — giving a "second life" to EV batteries that no longer meet automotive performance standards — addresses both grid flexibility and battery waste streams.
The 14 GW Battery Milestone
Texas entered 2026 with approximately 14 gigawatts of grid-scale battery capacity — nearly double what was installed at the beginning of 2025. The 6 GW added in 2025 alone represents the largest annual battery buildout in ERCOT history, driven by strong revenue poteential during summer peaks and the state's streamlined permitting process.
Combined with Texas's position as the nation's largest wind power producer and rapidly expanding solar fleet (projected to grow 92% between 2024 and 2026), battery storage is becoming the critical balancing resource that allows intermittent renewables to serve as reliable baseload. The VPP launches add distributed resources to this mix, creating a layered grid architecture.
⚡ Expert Insight — KilowattLogic Research
"These VPP launches signal that ERCOT's energy-only market is evolving from pure wholesale arbitrage to sophisticated demand-side orchestration. For commercial buildings with behind-the-meter battery systems — which are increasingly common for peak demand management — VPP enrollment creates an additional revenue stream: your battery earns money during grid stress events instead of just sitting idle. The economics get compelling when you stack demand charge savings + VPP dispatch payments + 4CP avoidance."
Why VPPs Matter for Commercial Buyers
Commercial facilities with battery systems can enroll in VPP programs to earn dispatch payments during peak events, on top of existing demand charge savings.
More distributed storage on the grid reduces the frequency and magnitude of price spikes. ERCOT wholesale prices hit $32.94/MWh average (+22% YoY), but VPPs help flatten peaks.
Companies with large EV fleets can explore second-life battery programs similar to B2U's model — a circular economy approach that extracts additional value from retired vehicle batteries.
VPP-coordinated batteries can be dispatched specifically to reduce coincident peak demand, directly lowering 4CP transmission charges for commercial accounts.
Bottom Line
Texas is becoming the proving ground for distributed energy at scale. 14 GW of battery storage, 9.6% load growth, and now VPP programs that monetize home and commercial batteries — it's the most dynamic energy market in the country. For commercial buyers, the actionable insight: evaluate behind-the-meter storage not just for demand charge management, but as a VPP-enrolled revenue asset that pays you during grid stress.
Sources: SOLRITE Energy launch announcement (Feb 24, 2026), B2U Storage Solutions, Forbes Energy, Texas Public Radio, PV Magazine USA, Utility Dive, EIA ERCOT demand forecast, CompareEnergy. Battery storage data verified against EIA and ERCOT filings.