Technological advancement on the electricity grid has focused on maximizing its use. This has led to the introduction of energy storage. Energy storage could be used to provide both peak and off-peak services to the grid. Recent work on the use of small units of energy storage like battery has proposed the vehicle to grid system. It is propose in this work to have energy storage device embedded inside the house of the energy consumer. In such a system, consumers with battery energy storage can be aggregated in to a community virtual power plant. In this paper, an optimized energy resource allocation algorithm is presented for a virtual power plant using genetic algorithm. The results show that it is critical to have a pricing scheme that help achieve goals for grid, virtual power plant, and consumers. © 2016 IEEE.