Sunrun, Renew Home, and Tesla announced a partnership to provide over 16 gigawatts of distributed energy capacity from h

Sunrun Inc., Renew Home, and Tesla announced on June 24, 2026, an agreement to deliver more than 16 gigawatts of flexible energy capacity to hyperscalers and utilities. The agreement establishes a framework for three of the largest players in home energy to aggregate millions of existing demand side and energy exporting devices in states across the country into local, turnkey solutions that require no additional hardware, software, interconnection, water, or land usage for offtaking parties.

The capacity-as-a-solution framework is deployable in months rather than years. It creates headroom on the existing grid by freeing up transmission capacity, easing congestion on distribution infrastructure, and extending the duration and depth of available capacity. The solution also helps American households lower energy bills, earn rewards, and power through outages.

The three companies would form the largest distributed power plant in the country, capable of injecting net new electrons onto the grid from home batteries paired with solar generation while simultaneously shifting household load during peak demand hours. The combined 16-gigawatt resource draws dispatchable capacity from hundreds of thousands of home battery systems operated by Sunrun and Tesla, alongside flexible peak capacity from more than 8 million smart thermostats and devices managed by Renew Home.

Sunrun CEO Mary Powell stated, "The grid of the 1800s cannot power the innovation of 2026. Americans deserve innovation that does not create unnecessary energy costs. When data centers are asked to throttle down operations during the most expensive and stressful hours of the day, we can activate our distributed power plants to help provide them the power they need while also protecting American families from footing the bill for costly new infrastructure."

In Virginia, which is the heart of Data Center Alley, the companies already have more than 300 megawatts of capacity readily available for immediate deployment. By 2030, that figure is expected to grow to at least 500 megawatts, rivaling some of the largest generation facilities in the state. The companies are capable of building multiple gigawatts of additional capacity across the country. Hyperscalers interested in securing these local energy resources are encouraged to engage immediately, as available capacity will be allocated on a first-come, first-served basis.

The companies have also committed to provide capacity to PJM's proposed Reliability Backstop Process. If accepted, PJM would immediately unlock over a gigawatt of capacity today, with more deployable in the years ahead for peak shaving, locational grid relief, and fast-responding ancillary services.

Ben Brown, Chief Executive Officer at Renew Home, said, "Renew Home convened this strategic coalition because we believe hyperscalers are motivated to drive down costs through this transition and that this group of residential-focused energy companies can help them accomplish that goal."

As electricity demand increases and tech leaders align with the Presidential Ratepayer Protection Pledge, the need for a technology-neutral energy strategy to support cost-effective economic growth is critical. Hyperscalers are racing to bring artificial intelligence compute online while interconnection queues lengthen and energy costs increase. The grid is sized for peak hours that occur only a fraction of the year, leaving expensive infrastructure underutilized most of the time, a cost ultimately borne by every ratepayer.

New analysis from The Brattle Group finds that better utilization of the existing power grid could reduce United States electricity bills by 110 billion to 170 billion dollars over the next decade and accelerate data center interconnection by several years. Sunrun, Renew Home, and Tesla designed this framework to capture that dual benefit: hyperscalers come online faster, and costs go down for everyone.

Colby Hastings, Senior Director of Residential Energy at Tesla, said, "The stakes are clear. America's grid faces mounting pressure from data centers, electrification, and manufacturing growth that no single infrastructure solution can solve fast enough. Sunrun, Renew Home, and Tesla believe that a huge piece of the answer is already in place — in the batteries, thermostats, and electric vehicles inside millions of American homes, waiting to be put to work."

Residential customers, data centers, and utilities can all benefit from the improved scale, speed, and cost effectiveness this framework activates. For more information about working with Sunrun, Renew Home, and Tesla for flexible capacity and household savings, interested parties can visit www.vppcapacity.com.