Key Highlights:
- On Tuesday, SPAN, a company known for smart electric panels, introduced a new product called SPAN Edge. This device is designed to help utilities manage the distribution grid more effectively and support home electrification.
- According to SPAN, the Edge device can be installed easily at a utility meter in under 15 minutes, providing reliable and flexible load management benefits that can form part of a virtual power plant.
- Arch Rao, the founder and CEO of SPAN, emphasized that the device could be included in a utility’s rate base, helping to control a building’s electricity load and possibly preventing the need for expensive distribution system upgrades.
Analysis:
With the launch of SPAN Edge, the company is transitioning from purely focusing on home electrification to becoming a key partner for utilities.
This product comes with energy management software that enables homeowners to add electric appliances like EV chargers and heat pumps without needing to increase their utility service. Rao noted that in California, these service upgrades often cost around $6,000 per home.
SPAN Edge features a “dynamic service rating” that allows utilities to set a virtual cap on a home’s total electricity usage. This flexibility is beneficial during peak times for energy demand, enabling better load balancing across the system.
The company claims that neighborhoods equipped with SPAN Edge can significantly improve the use of their electric distribution networks.
Additionally, SPAN is involved in a pilot virtual power plant program with Pacific Gas & Electric (PG&E) using residential energy resources to alleviate local grid stress. PG&E plans to activate this VPP for up to 100 hours during the summer months.
During peak energy events, SPAN will utilize its dynamic service rating to manage household energy demand while ensuring that overall use stays within safe limits for PG&E’s distribution infrastructure. Customers will have control over how their devices are managed.
According to Rao, a significant market exists for SPAN’s products, with around 48 million homes in the U.S. needing panel upgrades in order to accommodate electric vehicles and other resources like heat pumps and solar panels.
Rao stated, “We believe that utilities can unlock this electrification and load growth.” He mentioned that SPAN is working with more utilities to integrate this technology as if it were a standard meter upgrade.
Key regions for SPAN’s expansion include California, Colorado, the Northeast, the Southeast, and Texas.
SPAN Edge has the potential to lower utility costs while increasing revenue, which could help to keep electricity rates stable.
Before founding SPAN in 2018, Rao led product and engineering initiatives at Tesla’s energy division. The company has garnered approximately $285 million in venture capital funding, and its smart panel products are now installed across all U.S. states and Puerto Rico.
On Tuesday, SPAN announced a partnership with Landis+Gyr to enhance the commercial reach of SPAN Edge.