Michigan energy experts and consumer advocates are voicing support for bipartisan legislation advancing this week that would help reduce energy costs and strengthen reliability by harnessing energy resources people already have in their homes, schools, and communities.
The bills, Senate Bills 731 and 732, would enable the use of Community Power (also known as Virtual Power Plants or VPP) in Michigan. In simple terms, Community Power (VPP) allows existing customer-owned resources to work together during periods of high demand, helping balance the electric grid without requiring new power plants or costly infrastructure.
By coordinating resources such as rooftop solar, smart thermostats, electric vehicles, and home batteries, the grid can respond more quickly and efficiently when demand rises. Customers who choose to participate are also compensated for helping during those peak periods, giving families and businesses a chance to earn money from energy resources they already own while keeping costs down and reliability strong for everyone.
“Michigan already has energy resources sitting in garages, basements, and parking lots across the state,” said Patty O’Keefe, Regional Director for Vote Solar. “Virtual Power Plants are about using what is already there to keep the lights on and avoid unnecessary costs for everyone.”
Advocates emphasized that participation is entirely voluntary and designed to be flexible, allowing a wide range of households and communities to take part without requiring major new investments. The bills are written to be technology-neutral, reflecting Michigan’s current mix of energy resources and ensuring the approach remains adaptable over time.
Energy experts also pointed to the reliability benefits, particularly in areas that experience frequent outages. By easing strain on the grid during periods of high demand, Community Power (VPP) can help improve grid performance and reduce the risk of disruptions.
“This approach helps avoid building expensive infrastructure that may only be needed a few days each year,” said John Freeman, Executive Director of the Great Lakes Renewable Energy Association. “That is good for reliability, and it is good for ratepayers.”
Additionally, the legislation directs regulators to establish consumer protections and oversight to ensure Community Power (VPP) participation delivers real value to customers and to the grid. Coalition members noted that the Michigan Public Service Commission has previously identified this approach as a potential tool to address reliability challenges, including in parts of the Upper Peninsula.
Advocates stressed that Community Power (VPP) is not a standalone solution, but an important part of a broader effort to modernize Michigan’s energy system, meet rising electricity demands, and protect households from unnecessary costs by prioritizing faster, more efficient solutions.
“Enabling legislation for virtual power plants is smart policy that turns innovation into savings,” said Ashley Rudzinski, Climate & Environment Program Director for Groundwork Center. “By unlocking thousands of small, flexible energy resources that can work together, we lower costs, strengthen grid resilience, and deliver dependable power when it matters most.”
“Health practitioners know that when the power goes out, our Emergency Departments get busy,” stated Elizabeth Del Buono, MD, Founder of Michigan Clinicians for Climate Action. “As such, we are thrilled to support innovative Virtual Power Plant policies that utilize existing customer-owned resources to make energy more affordable and reliable while optimizing the use of healthy non-carbon forms of energy.”
“Virtual power plants are a powerful tool to accelerate energy affordability, resiliency and unlock new investment,” said Kelly Trombley, senior director, state policy, at Ceres. “By leveraging the untapped potential of businesses with large facilities that already generate onsite renewable power, Michigan can maximize energy resources, quickly add grid capacity, and reduce reliance on volatile fuel costs. Robust virtual power plant policies will ensure the state captures these economic and energy benefits.”
“Virtual Power Plants unleash community-based power by turning everyday devices into grid resources. They allow utilities to meet load growth in months—not years—while avoiding the cost, delay, and emissions of new generation,” said Mike Specian, PhD, at American Council for an Energy-Efficient Economy (ACEEE).
“Virtual Power Plants can also unlock the flexible energy potential of batteries in electric vehicles, enabling owners to use their vehicles for backup power at home and for grid support,” said Charles Griffith, Director of the Climate and Energy Program at the Ecology Center. “This adds value to the growing number of electric vehicles, which sit idle 95% of the time, while building resiliency in our electricity system and ensuring more affordable, reliable energy access for all Michigan families.”
“With this forward-thinking legislation, Michigan will become a leading state in embracing community-based power to keep energy affordable,” said Shannon Anderson, Distributed Power Plant Policy Director at Solar United Neighbors Action. “Virtual Power Plants are a market-based, cost-competitive option to keep the lights on and power bills low.”
The following organizations also signed onto this statement:
ACEEE (American Council for an Energy-Efficiency Economy)
Ceres
Ecology Center
Evergreen Action
Great Lakes Renewable Energy Association (GLREA)
Groundwork Center for Resilient Communities
Michigan Climate Action Network
NRDC (Natural Resources Defense Council)
Michigan Clinicians for Climate Action
Solar United Neighbors Action
Union of Concerned Scientists
Vote Solar