A power company in Vermont is looking at preventing outages in an unconventional way: by giving out home batteries. As utility companies mull installing extra power lines and constructing new plants, Green Mountain Power plans to supply most of its residential customers with large battery packs, not unlike Tesla’s Powerwall. The idea is that these packs would store excess energy, ultimately circumventing outages when severe weather rolls around.
As extreme weather events become more common, utility companies are looking for ways to deliver steady power to homes, businesses, and public resources. Though outages are merely inconvenient for some, they put everything from revenue to medical equipment at risk when they last more than an hour or so. Like many other states, Vermont has found itself at odds with severe storms and flooding over the past year. Although diversifying power sources and setting up new lines is one way to mitigate outages, doing so is time-consuming and expensive.
Enter Green Mountain’s home battery solution. According to a New York Times report, the utility company plans to spend $280 million to strengthen its power grid and purchase batteries from various manufacturers. This is just an initial spend, and it has to be approved by Vermont’s Public Utility Commission before Green Mountain can start snatching up batteries. Once that authorization is granted, Green Mountain will officially launch its home battery program, which is expected to cost $1.5 billion over the next seven years.
If that sounds a bit pricey, it pales in comparison with the cost of plant construction and power line additions. Green Mountain told the NYT that equipping residences with battery packs is cheaper than the alternative—and it’s familiar with the process. In 2015, it started leasing Tesla Powerwall units to customers for a $5,500 lump sum, or $55 per month over ten years. Those who participate in the program must agree to allow Green Mountain to access their stored power during peak hours, reducing the company’s reliance on fuel-burning plants and driving down costs for all customers.
Customers can continue leasing batteries until Green Mountain delivers the ones associated with its new (albeit tentative) program. The company’s most vulnerable customers will receive batteries first, while customers in more stable areas will sit at the end of the list. At a minimum, the program will ensure customers can always use their lights, kitchen appliances, medical equipment, and other essential electronics.
With only 270,000 residences and businesses on its roster, Green Mountain’s influence might sound inconsequential. But for a state as small and sparsely populated as Vermont, Green Mountain’s customer base is significant. Spearheading a home battery installation campaign could quickly start a trend within Vermont and even other parts of New England—if the program succeeds.
