DTE Energy and sonnen Launch Michigan's First Residential Battery Virtual Power Plant Pilot to Explore New Ways to Lower Energy Costs

The two-year pilot is a first step toward how connected home batteries can reduce grid costs, improve reliability and support long-term affordability for Michiganders.

ANN ARBOR, Mich. , Oct. 29, 2026 /PRNewswire/ -- DTE Energy and sonnen today announced the launch of Michigan's first residential battery virtual power plant (VPP) pilot at Veridian at County Farm, an innovative carbon-neutral community developed by Thrive Collaborative. The pilot is a first step toward showing how connected home batteries can be used to reduce energy costs, improve reliability and create a more flexible electric grid while delivering greater value for customers.

Approved by the Michigan Public Service Commission (MPSC), the two-year pilot will virtually connect nearly 100 homes through sonnen battery systems and VPP technology. By coordinating individual residential batteries as an additional grid resource, DTE will evaluate how this approach could ultimately help meet growing energy demand while supporting reliability and affordability goals for customers. This approach aligns with recent MPSC recommendations encouraging greater use of distributed energy resources and existing assets to help lower energy costs for Michigan families.

"Across Michigan, families are feeling the pressure of higher costs for groceries, housing, childcare and other everyday necessities, and we know affordability matters more than ever," said Joi Harris, president and chief executive officer of DTE Energy. "That's why we're exploring innovative ways to make better use of energy resources. This pilot is an opportunity to test an approach that could ultimately provide a lower-cost way to meet growing energy needs and strengthen reliability. It's exactly the kind of forward-thinking approach that has the potential to help keep energy affordable for customers over the long term."

Through the pilot, DTE will evaluate how residential VPPs could ultimately help lower costs, support high demand periods and create new opportunities to deliver customer value. Insights from the pilot will help determine how residential virtual power plants could support a more affordable and clean energy future in Michigan. "Veridian was designed from the outset around a fundamentally different approach to energy," said Matt Grocoff, founder of Thrive Collaborative. "This pilot marks a historic moment for Michigan as DTE's first VPP pilot project, and a defining moment for Veridian. We're incredibly proud that this community can serve as the place where this vision can move from concept to reality, and grateful to everyone involved for helping bring it to life."

Veridian is located on 14 acres adjacent to County Farm Park, features 170 mixed-income homes and is built to be fossil fuel-free, with each home designed to operate as a resilient, self-balancing energy ecosystem. Every home is equipped with sonnen battery systems, and the community brings together geothermal energy, advanced electric heat pumps, EV-ready charging, all-electric appliances and rooftop solar arrays to create an integrated, all-electric model for sustainable living.

The pilot represents the next chapter in Veridian's energy playbook. For several years, sonnen and Thrive Collaborative have been working toward a vision of making Veridian a model for community-based residential VPPs in Michigan. "The Veridian VPP pilot will be a true demonstration of the decentralized, digitalized and decarbonized energy system of the future," said Blake Richetta, chairman and chief executive officer of sonnen Inc. "By coordinating intelligent batteries across an entire community, we are turning individual home batteries into a pooled, grid-interactive resource that responds to grid needs in real time. We're proud to partner with DTE, a world-class utility and a pleasure to work with. Their innovative spirit and firm resolve are making Michigan's first grid-interactive VPP community a reality, and that is a major achievement."

VPPs can help utilities meet energy needs by coordinating resources such as batteries and other smart technologies. As electricity demand increases, this approach has the potential to improve reliability, reduce system costs and create long-term affordability benefits for customers. This concept aligns with recent recommendations from the MPSC to maximize existing grid resources and expand opportunities for distributed energy participation as a way to lower energy costs for Michigan families.

sonnen's VPP architecture continues to gain recognition for its role in advancing the capabilities of residential energy storage. The VPP at Veridian was nominated for the Michigan Energy Innovation Council's (EIBC) Project of the Year award, as part of its 14th Annual Michigan Energy Innovators Gala. sonnen was also recently named a 2026 POWER Awards finalist for its Wattsmart Battery Program with Rocky Mountain Power.

About DTE Energy
DTE Energy (NYSE:DTE) is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Its operating units include an electric company serving 2.3 million customers in Southeast Michigan and a natural gas company serving 1.4 million customers across Michigan. The DTE portfolio also includes energy businesses focused on custom energy solutions, renewable energy generation, and energy marketing and trading. DTE has continued to accelerate its carbon reduction goals to meet aggressive targets and is committed to serving with its energy through volunteerism, education and employment initiatives, philanthropy, emission reductions and economic progress. Information about DTE is available at dteenergy.com, empoweringmichigan.com, x.com/DTE_Energy and facebook.com/dteenergy. 

About sonnen:
sonnen Inc is a leading manufacturer of smart energy storage systems for residential applications, and a pioneer of the residential battery based virtual power plant. The sonnen VPP is nationally recognized as a blueprint for the decentralized, digitalized, decarbonized energy system of the future. sonnen has received many internationally recognized awards celebrating our technological achievement. Learn more at: www.sonnenusa.com.

About Thrive Collaborative:
THRIVE Collaborative is an Ann Arbor, MI based real estate development, design, building and consulting firm dedicated to creating the life enhancing communities and cities needed for the 22nd Century. THRIVE's mission is to accelerate the shift towards beautiful, healthy, and environmentally responsive design and lead the transformation to a truly sustainable human-built environment that is socially just, nature rich and ecologically restorative.

SOURCE DTE Energy