Updated September 2026.
A microgrid is a small power network that can disconnect from the main grid and keep running on its own when the main grid goes down. Hospitals, military bases and university campuses have run them for years. What is new is building them into ordinary housing developments. One of the first in the US, in Menifee, California, is worth a close look, because it shows both what works and what can go wrong.
The Menifee project
Homebuilder KB Home built 219 all-electric homes in two neighborhoods, Durango and Oak Shade, in Menifee in Riverside County. The homes are standard family houses, not tiny homes. Each one has:
- rooftop solar
- a 13 kWh home battery
All of them are linked to shared 2-megawatt community batteries. The equipment and control software came from SunPower, with Schneider Electric, the utility Southern California Edison and university researchers as partners. The US Department of Energy backed it as part of a research program into “connected communities”.
The idea is that in an outage the neighborhood separates from the grid, and its solar and batteries keep the lights on. On a normal day the batteries can soak up surplus solar and help the local grid through the evening peak.
What went wrong
SunPower filed for bankruptcy in August 2024. Homeowners in Menifee managed their systems through the company’s app and software, and support for those stopped that September. The solar panels and batteries kept working, but residents were left unsure who would maintain the software that ties the microgrid together. Another company, Complete Solaria, bought parts of SunPower’s business (including its new-homes division) and later took on the SunPower name. The lesson for anyone buying into a system like this: the hardware may last 25 years, but the company running the software might not.
Are community microgrids worth it?
The case for them:
- Backup power: this matters in places that face wildfire power shut-offs or storms.
- Lower bills: residents use more of their own solar power.
- Help for the wider grid: a neighborhood that can shift or reduce its demand at peak times eases strain on everyone else.
The questions to ask:
- Who owns and maintains the shared batteries?
- What happens if the operating company fails?
- How long will the backup actually last in a multi-day outage?
- What are the rules under your utility’s net-billing rate?
Related reading: Smart Grids and Renewable Energy and Solar Powered Homes.
