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The installed base of residential DERs connected to VPP platforms reached 14 million in Europe and North America in 2025
(MENAFN- Berg Insight) Gothenburg, Sweden – May 20, 2026: Berg Insight, the world’s leading IoT market research provider, today released a new market report covering the residential virtual power plant software market. The number of residential distributed energy resources (DERs) connected to virtual power plant (VPP) software platforms in Europe and North America reached 13.9 million at the end of 2025. The total flexible capacity of these assets amounted to 22.9 GW. VPPs aggregate residential DERs such as smart thermostats, EV chargers, home batteries, heat pumps, rooftop solar PV systems and other flexible loads into a single controllable resource.
The share of electricity generated from intermittent renewable sources such as wind and solar power is steadily increasing, while electricity demand is rising rapidly due to the expansion of data centres, the growing adoption of electric vehicles and the electrification of heating and cooling systems. These developments are placing significant strain on electricity grid infrastructure, much of which was designed for a more centralised and predictable energy system. VPPs are emerging as an important tool for balancing electricity supply and demand, improving grid resilience and reducing the need for investments in conventional generation and grid capacity.
In Europe, there were an estimated 3.3 million residential DERs connected to VPP software platforms at the end of 2025. Smart heating is estimated to be the largest DER category in terms of connected units, followed by EV charging and home battery storage systems. The total flexible capacity of these DERs reached 9.0 GW at the end of 2025. In North America, there were an estimated 10.6 million residential DERs connected to VPP software platforms at the end of 2025. Smart thermostats accounted for the vast majority of connected assets, while home battery storage systems and EV chargers represented smaller shares. The total flexible capacity in North America reached 13.9 GW.
A number of companies are active in the residential VPP market. Berg Insight’s new report focuses on European and North American companies that develop software solutions for aggregating residential DERs, providing various grid support services and enabling participation in wholesale energy markets. The report also covers companies that develop software and hardware solutions that enable other companies to provide these services. Leading VPP specialists include Renew Home, EnergyHub, Uplight, Voltus, Voltalis, Kraken, Axle Energy and Flexa. DER OEMs and installers such as Tesla, Sonnen, Lunar Energy and 1KOMMA5° are also active in the market, together with energy retailers and utilities including Tibber, Frank Energie and David Energy. Companies developing tools and platforms that enable other companies to provide VPP services include Beebop.ai, Ensek, Eniris, Kiwigrid, Enode, Virtual Peaker and GridX.
“The rapid growth of distributed energy resources is changing the structure of the electricity system”, says Martin Apelgren, Principal Analyst at Berg Insight. Individually, residential DERs have limited impact on grid operations. When aggregated through VPP platforms, they can however become a significant flexible resource comparable in scale to conventional power plants. “As electricity demand continues to rise and renewable power generation becomes more variable, residential VPPs will play an increasingly important role in supporting grid stability, reducing peak demand and unlocking new value streams for households and energy market participants”, concludes Mr. Apelgren.
Download report brochure: The Residential Virtual Power Plant Software Market
About Berg Insight
Berg Insight is a dedicated M2M/IoT market research firm based in Sweden. We have been specialising in all major M2M/IoT verticals such as fleet management, car telematics, smart metering, smart homes, mHealth and industrial M2M since 2004. Our vision is to be the most valuable source of intelligence for our customers. Berg Insight offers numerous market reports, detailed market forecast databases and advisory services. We provide custom research tailored to your requirements including focussed research papers, business case analysis, go-to-market strategies and bespoke market forecasting. We have provided analytical services to 1500 clients in 74 countries on six continents to date. Our customers range from many of the world’s largest mobile operators, IT companies and telecom vendors, to venture capitalists, technology start-ups and specialist consultants.
The share of electricity generated from intermittent renewable sources such as wind and solar power is steadily increasing, while electricity demand is rising rapidly due to the expansion of data centres, the growing adoption of electric vehicles and the electrification of heating and cooling systems. These developments are placing significant strain on electricity grid infrastructure, much of which was designed for a more centralised and predictable energy system. VPPs are emerging as an important tool for balancing electricity supply and demand, improving grid resilience and reducing the need for investments in conventional generation and grid capacity.
In Europe, there were an estimated 3.3 million residential DERs connected to VPP software platforms at the end of 2025. Smart heating is estimated to be the largest DER category in terms of connected units, followed by EV charging and home battery storage systems. The total flexible capacity of these DERs reached 9.0 GW at the end of 2025. In North America, there were an estimated 10.6 million residential DERs connected to VPP software platforms at the end of 2025. Smart thermostats accounted for the vast majority of connected assets, while home battery storage systems and EV chargers represented smaller shares. The total flexible capacity in North America reached 13.9 GW.
A number of companies are active in the residential VPP market. Berg Insight’s new report focuses on European and North American companies that develop software solutions for aggregating residential DERs, providing various grid support services and enabling participation in wholesale energy markets. The report also covers companies that develop software and hardware solutions that enable other companies to provide these services. Leading VPP specialists include Renew Home, EnergyHub, Uplight, Voltus, Voltalis, Kraken, Axle Energy and Flexa. DER OEMs and installers such as Tesla, Sonnen, Lunar Energy and 1KOMMA5° are also active in the market, together with energy retailers and utilities including Tibber, Frank Energie and David Energy. Companies developing tools and platforms that enable other companies to provide VPP services include Beebop.ai, Ensek, Eniris, Kiwigrid, Enode, Virtual Peaker and GridX.
“The rapid growth of distributed energy resources is changing the structure of the electricity system”, says Martin Apelgren, Principal Analyst at Berg Insight. Individually, residential DERs have limited impact on grid operations. When aggregated through VPP platforms, they can however become a significant flexible resource comparable in scale to conventional power plants. “As electricity demand continues to rise and renewable power generation becomes more variable, residential VPPs will play an increasingly important role in supporting grid stability, reducing peak demand and unlocking new value streams for households and energy market participants”, concludes Mr. Apelgren.
Download report brochure: The Residential Virtual Power Plant Software Market
About Berg Insight
Berg Insight is a dedicated M2M/IoT market research firm based in Sweden. We have been specialising in all major M2M/IoT verticals such as fleet management, car telematics, smart metering, smart homes, mHealth and industrial M2M since 2004. Our vision is to be the most valuable source of intelligence for our customers. Berg Insight offers numerous market reports, detailed market forecast databases and advisory services. We provide custom research tailored to your requirements including focussed research papers, business case analysis, go-to-market strategies and bespoke market forecasting. We have provided analytical services to 1500 clients in 74 countries on six continents to date. Our customers range from many of the world’s largest mobile operators, IT companies and telecom vendors, to venture capitalists, technology start-ups and specialist consultants.
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