Sunrun, Renew Home, and Tesla Team Up to Deliver More Than 16 Gigawatts of Fast, Flexible Power for Data Centers and Large Loads
Sunrun, Renew Home, and Tesla will jointly provide over 16 gigawatts of flexible energy capacity to data centers and utilities by aggregating existing home batteries and smart devices, aiming to reduce grid congestion and energy costs while supporting rapid deployment.
Sunrun, Renew Home, and Tesla announced a partnership to deliver more than 16 gigawatts of flexible energy capacity to hyperscalers and utilities by leveraging existing home energy systems. The framework aggregates millions of demand-side and energy-exporting devices, including home batteries and smart thermostats, without requiring additional hardware or infrastructure for offtakers. Deployable within months, the solution aims to ease grid congestion, free up transmission capacity, and extend available capacity during peak demand while helping households lower energy bills and maintain power during outages.
The collaboration forms the largest distributed power plant in the U.S., capable of injecting new electrons into the grid from home batteries paired with solar generation while shifting household load during peak hours. In Virginia’s Data Center Alley, over 300 megawatts of capacity is already available, with expectations to reach at least 500 megawatts by 2030. Hyperscalers can secure this capacity on a first-come, first-served basis, with additional deployments planned nationwide to address rising electricity demand and interconnection challenges.
The companies have also committed to provide capacity to PJM’s proposed Reliability Backstop Process, which could immediately unlock over a gigawatt of capacity for peak shaving, grid relief, and ancillary services. This initiative aligns with the Presidential Ratepayer Protection Pledge, as new analysis suggests better grid utilization could reduce U.S. electricity bills by $110 billion to $170 billion over the next decade while accelerating data center interconnection timelines.
Residential customers, data centers, and utilities stand to benefit from improved scale, speed, and cost-effectiveness through this framework. The aggregated capacity draws from hundreds of thousands of home battery systems operated by Sunrun and Tesla, alongside flexible peak capacity from over 8 million smart thermostats managed by Renew Home, offering a technology-neutral solution to support economic growth and grid reliability.