Budderfly Pitches a 150 MW City VPP and $500 Million, but Its One Municipal Contract Is $4.4 Million in Cadillac
- Project capital offered: $500 million
- Planned VPP size: 150 MW
- Target cities: 100
- Cadillac investment: $4.4 million
Budderfly will make $500 million in project capital available to small and medium-sized US cities, the Shelton, Connecticut company said on October 20, 2026. Its Modernizing American Cities program with Schneider Electric funds solar, battery storage and efficiency upgrades. The city pays no upfront cost.
According to pv magazine USA, Budderfly plans to combine the sites into a 150 MW virtual power plant. It aims to upgrade 100 cities at roughly $4 million to $5 million each. It forecasts energy savings of 60% to 80% per city. The company announced the program at a city managers conference in Long Beach, California.
Under the model, Budderfly finances, installs, owns, operates and maintains the equipment. Cities pay over time from the energy savings instead of from grants or capital budgets. Schneider Electric supplies the energy management and automation technology. That technology integrates and runs the systems.
One City Under Contract
The program builds on one disclosed contract. In Cadillac, Michigan, Budderfly is investing about $4.4 million across seven municipal facilities. They include city hall and the wastewater treatment plant. The work includes solar, battery storage, HVAC and lighting upgrades, EV charging and microgrid capability for outages.
The Cadillac City Council voted unanimously on July 20 to waive competitive bidding and approve the deal. The draft minutes describe a 15-year agreement. Under it, Budderfly “would assume the performance risk.” The project “is projected to lower the City’s overall energy costs by approximately 65%,” the minutes state.
The city also gets a share of demand-response revenue. It gets extra savings if the project exceeds “the projected 70% savings threshold.” The minutes give both the 65% and the 70% figures without explaining the gap. At the end of the term, the city owns the equipment outright.
Company representatives told the council that Cadillac would be the first municipal project for Budderfly. One council member said the offer seemed too good to be true. City Manager Marcus Peccia said it is sometimes necessary to take a “leap of faith.”
What the Announcement Does Not Say
Budderfly did not say whether the $500 million is newly committed financing or an allocation of existing capital. The press release does not mention the plan to combine the sites into a 150 MW VPP. No source names the utility, grid operator or market that would buy its capacity.
The capital figures also differ by source. pv magazine USA reports that Budderfly has invested more than $378 million in facility upgrades over 10 years. That work covers more than 9,000 commercial customer locations. In the Cadillac minutes, company representatives say Budderfly raised approximately $600 million through private markets for similar projects.
The Cadillac minutes do not give the monthly payments or the size of the city share of demand-response revenue. No battery or solar rating for Cadillac appears in the release, the news coverage or the minutes.
Why It Matters
City finance officers face rising power bills. The release cites US Energy Information Administration data. Average commercial electricity prices rose about 6% in the first seven months of 2026. Ohio, Virginia and Maryland saw increases of 20% or more.
A shared-savings contract moves the capital cost off the city budget. In return, the city shares the savings for 15 years. Before signing, a city should ask for the payment schedule and the baseline that defines “savings.” It should also ask who keeps the demand-response revenue. A virtual power plant earns money only where a utility or market pays for it. The plan to combine the sites into a 150 MW VPP needs a named buyer before the number means much.
Critical Perspective
Budderfly pitches a national program, but it has disclosed only one city contract. Cadillac is about $4.4 million across seven facilities, and the plan calls for 100 cities at $4 million to $5 million each. The company also gives two capital figures: more than $378 million invested over 10 years, and about $600 million raised privately. The Cadillac minutes cite a 65% projected saving and a 70% threshold, with no monthly payment. No source names a buyer for the 150 MW VPP or gives a solar or battery rating for Cadillac. Before a second city signs, will Budderfly publish the Cadillac payment schedule and the baseline that defines savings?
Sources
- Budderfly news release, October 20, 2026
- pv magazine USA, October 21, 2026
- Cadillac News, council approval of the Budderfly agreement
- City of Cadillac, City Council minutes, July 20, 2026 (draft)
