Manufacturers are pairing batteries with residential air conditioners and heat pumps to create virtual power plants (VPPs) that reduce strain on electricity grids during peak demand. By charging when power is plentiful and discharging during spikes, these systems allow homeowners to maintain indoor comfort without drawing from the grid when utilities are most stressed.
Space heating and cooling account for approximately 50 percent of all energy end uses worldwide. This massive load often forces utilities to activate more expensive and polluting power plants to prevent outages during extreme temperature swings. The shift toward battery-integrated cooling transforms traditionally energy-intensive appliances into grid assets through a process known as demand response.
In New York City, the startup Every Electric is deploying this technology using portable, 2-kilowatt-hour power banks that connect to plug-in air conditioning units. According to Andrew Wang, co-founder and CEO of Every Electric, the company manages whether electrons flow from the wall or the battery to keep the unit powered while reducing grid load.
How Every Electric Scales Virtual Power Plants in New York
Every Electric’s model focuses on accessibility for renters and city dwellers by utilizing portable hardware rather than permanent installations. The company distributes briefcase-sized batteries that act as a buffer between the wall outlet and the air conditioner. Through software aggregation, these individual units function as a decentralized virtual power plant.
The program is incentivized through a partnership with New York’s electric utility, Con Edison. Residents can obtain power banks at no cost or via a refundable deposit, and they receive a portion of the company’s earnings. Wang stated that the typical yearly rebate for a participating home is roughly equivalent to a July or August electricity bill.
Demand for the service has significantly outpaced initial supply. Wang reported that over 10,000 batteries have been requested by New York City residents, though only about 1,000 have been shipped. While the company originally planned to ship 2 megawatts of power banks this summer, Wang noted that they have already exceeded that figure. If all current requests are fulfilled, Every Electric could provide over 20 MW of flexibility to the grid, which is enough energy to power a few thousand homes.
The system also allows for hyperlocal demand response. Wang explained that Con Edison can identify specific neighborhoods requiring more energy, allowing Every Electric to instruct power banks in those precise areas to switch on and temporarily disconnect air conditioners from the grid. Depending on the efficiency of the cooling unit, the current batteries can sustain power for up to four hours.
Carrier’s Integrated Battery Heat Pump Pilot
While Every Electric targets the plug-in market, global HVAC provider Carrier is testing a different approach for homes with central air. Based in Palm Beach Gardens, Florida, Carrier launched a pilot program featuring residential heat pumps with batteries built directly into the units. These machines provide both heating and cooling and can switch between grid power and stored energy based on real-time demand.
The Carrier pilot began in 50 homes and has since expanded to a number of cities across the U.S. in partnership with several utility companies. Ron Domitrovic, a senior program manager at the nonprofit energy research institute EPRI, is collaborating with Carrier on the project. Domitrovic stated that the test units are deployed across a cross-section of both cold and warm climates to gauge their effectiveness.
This integrated approach differs from traditional demand response. According to Domitrovic, air conditioners have been used as demand response resources for decades, but typically involved “cycling” or turning off units during peak hours via smart thermostats. Battery integration removes the need for residents to sacrifice comfort or experience unwanted temperature shifts during a grid dispatch event.
Comparing Portable Buffers vs. Integrated HVAC Systems
The two primary strategies for battery-enabled cooling serve different demographics and infrastructure needs. Every Electric focuses on “legacy” hardware, meaning their batteries can work with units that are up to 20 years old. This provides a flexible solution for renters who cannot replace their HVAC systems.
In contrast, Carrier’s integrated heat pumps represent a hardware upgrade. Heat pumps generally use more power than small plug-in units and operate during warm months and winter, potentially offering a larger total impact on grid stability. However, the portable battery approach avoids the high cost of installing a new heat pump system.
There are physical and operational trade-offs to consider. Every Electric’s batteries weigh approximately 50 pounds, adding bulk to small spaces. Furthermore, because plug-in units are primarily used in the summer, their utility as a demand response tool is less than it is with heat pumps, whereas integrated heat pumps provide value during both winter peaks and summer heatwaves.
The Future of Decentralized Grid Management
The transition toward VPPs is part of a broader effort to decentralize energy storage. These networks often combine residential solar panels, battery storage, and grid-friendly EV chargers to create a flexible energy ecosystem. By shifting the timing of electricity use, these systems reduce the need for “peaker plants,” which are often the most carbon-intensive sources of power.
Every Electric is currently planning to expand its pilot programs beyond New York City. The company is targeting utilities in New Jersey and Massachusetts, as well as other regions in the Northeast where plug-in air conditioning units remain the dominant cooling method.
The next phase for these programs involves the collection and analysis of summer performance data to determine how much load can be reliably shifted during the year’s highest electricity demands. As utilities continue to face increased pressure from extreme weather, the ability to turn household appliances into grid assets will likely become a standard component of urban energy planning.
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