Global VPP market could hit $14.8b as falling battery costs fuel grid shift

This will be driven by AI, decentralisation, and solar-plus-storage adoption.

The global home solar virtual power plant (VPP) market is projected to reach $14.8b by 2033, with a compound annual growth rate of 23.8%, according to a Research Intelo report.

The decentralisation of energy systems enables utilities and grid operators to utilise VPPs, managing peak loads and balancing grid operations without the need for new fossil fuel plants.

Artificial intelligence and other technological innovations allow real-time monitoring, predictive maintenance, and smart demand response, making VPPs more efficient and reliable.

Falling costs of solar photovoltaic systems and home batteries are also driving growth, as they enable more households to adopt renewable energy systems and participate in VPP programmes.

Consumer demand further fuels growth, as households increasingly value environmental stewardship, energy independence, and lower electricity bills, motivating the adoption of solar-plus-storage solutions integrated into VPPs.

The outlook for the market remains promising, supported by the accelerating shift towards decentralised energy systems and smarter grid management, the report states.