Fact of the Week: DERs Target 32 Million by 2030
Virtual power plants are becoming a major force in the energy industry. In fact, Berg Insight estimates the installed base of residential DERs (distributed energy resources) connected to VPP (virtual power plant) platforms reached 13.9 million across Europe and North America at the end of 2025. These systems include smart thermostats, EV (electric vehicle) chargers, home batteries, heat pumps, and rooftop solar systems working together to support the electric grid.
But that is only part of the story. According to the report, the residential VPP market is expected to continue growing rapidly in the next several years. Berg Insight forecasts the number of connected residential DERs will climb to 32 million by 2030, representing a compound annual growth rate of 18.1%.
North America currently leads the market, with an estimated 10.6 million residential DERs connected to VPP platforms at the end of 2025. Smart thermostats account for the majority of these systems, while home batteries and EV chargers continue to gain momentum. Europe also saw strong adoption, reaching approximately 3.3 million connected residential DERs, driven largely by smart heating systems, EV charging, and battery storage technologies.
The rapid growth of virtual power plants highlights a larger shift happening across the energy sector. As electricity demand rises and more homeowners adopt renewable energy technologies, utilities and grid operators are increasingly turning to flexible, connected energy systems to improve reliability and reduce strain on the grid.
How quickly the market continues to expand will depend on several factors, including government policy, utility incentives, energy prices, and continued investment in clean energy infrastructure. Still, the momentum behind virtual power plants appears strong, and many experts believe they could play a major role in shaping the future of energy management in the years ahead. #factoftheweek