Residential energy storage startup Base Power and utility El Paso Electric Company (EPE) have announced a new residential distributed energy resource (DER) pilot programme in Texas, US.
The DER programme will use residential battery systems to help reduce strain on the electric grid during times of high electricity demand.
Base Power deploys a fleet of networked residential battery systems that act as a virtual power plant (VPP) in EPE’s Texas service region.
The batteries will be installed at qualifying residential customer homes and integrated into EPE’s system to provide reliable grid services during peak demand periods, while also maintaining backup power for customers during outages.
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The partnership was chosen via EPE’s Residential Distributed Energy Storage Pilot Programme (DESPP), aiming to deploy up to 10MW of residential energy storage before the 2026 summer peak. This initiative addresses local capacity constraints and enhances system resiliency.
Under the programme, EPE will oversee the battery fleet, handling dispatch, scheduling, and performance monitoring.
Base Power will take charge of system installation and maintenance, allowing EPE to efficiently deploy capacity without increasing operational complexity. The battery systems are designed to operate independently of any existing solar systems at the participating homes.
In October 2025, Base Power raised US$1 billion in Series C financing from venture capital fund Addition. Headquartered in Austin, Texas, the company claims to have deployed more than 100MWh of residential battery capacity in under two years.
Base is building its first energy storage and power electronics manufacturing plant at the site of the former Austin American-Statesman printing press in downtown Austin, Texas.
It also recently qualified for Texas’s Aggregated Distributed Energy Resource (ADER) programme, which allows distributed batteries to be combined and bid directly into the grid.
The company’s ‘Gen 1’ battery has an 11.4kW/25kWh capacity and has UL 1973, UL 1741, UL 9540, and UL 9540A certifications.
VPPs can potentially challenge traditional centralised electricity networks that rely on large power plants. Consequently, many companies have developed VPP programmes, often offering solar or battery systems for free or at reduced costs, to help maintain grid frequency and reliability.
Sunrun, NRG Energy, Haven Energy, Leap, and Enel North America have recently participated in advancing VPP programmes through separate initiatives.
In late 2025, the New Orleans, Louisiana City Council voted unanimously to approve a US$28 million VPP programme, reportedly the first DER programme in the city.
Sonnen and Solrite launch “battery only” VPP in Texas
In similar news, VPP provider Sonnen and Solrite Energy have launched a “battery only” VPP programme in Texas.
Each home features 60kWh of Sonnen energy storage and a flat US$0.12-per-kWh retail energy rate for US$20 per month.
According to Sonnen, 3,000 Texas customers have enrolled in theprogramme. With the new battery-only option, Solrite and sonnen aim to add up to 10,000 new customers by the end of 2026, adding 600MWh of energy to Texas’s grid.
Sonnen further claims that thousands of Texas solar customers are finding themselves with reduced compensation for excess electricity as retail providers increasingly limit or eliminate solar buy-back programmes.
Retail electricity contracts in Texas usually last between 12 and 36 months, and some plans include solar buy-back compensation. However, providers are not obligated to keep offering these programs after the contracts end, which results in a gradual decline in available buy-back options in the market.
The trend has resulted in solar customers still paying loans or power purchase agreement (PPA) fees despite receiving minimal or no compensation for the electricity they feed into the grid during peak hours.
Solrite and Sonnen’s battery storage programme targets both existing solar customers and households without rooftop systems. The offering provides 60kWh of battery storage for US$20 monthly with no upfront costs.
For solar customers, excess energy generated during the day is stored for evening use instead of being sold back to the grid at lower rates. Non-solar customers receive backup power and can buy electricity at 12 cents per kWh through retail partner Abundance Energy.
The battery systems are designed to deliver grid services that go beyond benefits for individual customers. On days with high renewable output, like sunny, windy spring days when generation surpasses demand, the distributed battery network can absorb the excess electricity by charging in a coordinated manner.
The system aims to help integrate more utility-scale renewable energy by providing flexible load management, potentially reducing reliance on peaking power plants during high-demand periods.
In May 2025, Sonnen partnered with Abundance Energy and Energywell Technology Licensing to develop a battery-enabled VPP in Texas.
The programme allowed Abundance Energy customers to use sonnenConnect residential battery installations to support grid stability and lower electricity costs.
The VPP was set to have a capacity of 60MWh with the customer base enrolled at the time of announcement.
The Energy Storage Summit USA will be held from 24-25 March 2026, in Dallas, TX. It features keynote speeches and panel discussions on topics like FEOC challenges, power demand forecasting, and managing the BESS supply chain. ESN Premium subscribers can get an exclusive discount on ticket prices. For complete information, visit the Energy Storage Summit USA website.
