Tesla Demand Response Terms of Service

 

1. Welcome

Welcome and thank you for your interest in Tesla’s Grid Services program.  Under this program, Tesla and its subsidiaries and affiliates (collectively, “Tesla”) can use your System—including your PV array, battery, and other components (your “System”), to provide demand response services to your utility or similar entities.  

These Terms of Service (“Terms”) govern Tesla’s use of your System to provide Grid Services, which are further defined below.

Please read these Terms carefully. They require the use of binding arbitration to resolve disputes, rather than jury trials or class actions. The term “you,” as used in these Terms, means the customer under the agreement through which you purchased the System, or are leasing the System or purchasing power (the “PV Agreement”).  Capitalized words not defined in these Terms have the meaning given to them in the PV Agreement.

THIS IS A LEGAL AGREEMENT. BY ACKNOWLEDGING BY ENTERING INTO THE PV AGREEMENT, YOU ARE ACCEPTING AND AGREEING TO THESE TERMS, UNLESS YOU OPT-OUT AS DESCRIBED BELOW. 

2. DESCRIPTION OF GRID SERVICES AND YOUR COMPENSATION

Tesla can use the System, including energy stored in the battery, to help maintain the reliability of the electrical grid, to reduce the strain placed on the electrical grid during periods of high electricity demand, and for similar purposes.  Collectively, these are “Grid Services.”  Grid Services can be provided to your utility and other entities with similar obligations to maintain grid stability.  Grid Services can be provided under the terms of existing and future programs.  

The components of your System that may be used in support of Grid Services include, but are not limited to, the PV array; the inverter; the battery; and any smart thermostat, pool pump, or electric water heater installed by Tesla or its agent.  Tesla may update these Terms from time to time with additional System components that used in support of Grid Services.  

Some Grid Services may result in the consumption of energy produced by your System or stored in the battery, including energy losses attributable to cycling the battery.  Tesla will reasonably compensate you for energy consumed in connection with Grid Services, to the extent that such energy is not consumed at your home or credited through a net metering program (the “Grid Services Reimbursement”).  Tesla will notify you in advance if it intends to make your System available for Grid Services, and the associated Grid Services Reimbursement. 

You will have the right to opt out at that time, or any other time, as described in Section 4. 

You agree that the Grid Services Reimbursement is solely a responsibility of Tesla, and you will not seek to recover it from any other entity.  In addition, if you are purchasing your System through a loan, you acknowledge that you are responsible to pay your loan in full, even if Tesla fails to make the Grid Services Reimbursement.

3. TERM OF ENROLLMENT

Unless you opt out as described below, you will remain enrolled in Tesla’s Grid Services program for the duration of your Power Purchase Agreement or Lease.  If you bought your System under a Solar Home Improvement Agreement (including through a Solar Loan), you will remain enrolled for the duration of the warranty on the battery.

4. RIGHT TO OPT OUT 

You have the right to opt out of Tesla’s Grid Services program. IF YOU DO NOT AGREE WITH ANY OF THESE TERMS, YOU MAY OPT OUT BY CALLING US AT 888-765-2489.

5. DATA USE AND SHARING 

The System generates operational and technical data, including but not limited to solar energy generation, battery state of charge, energy consumption, voltage, temperature, serial number and mac address (“System Data”).  So long as you remain enrolled in Tesla’s Grid Services program, you agree that Tesla may collect, use and store the System Data for the purpose of providing the Grid Services described in these terms and in accordance with our Privacy Policy. You further agree that Tesla may share System Data it collects with third parties, including utilities, for the purpose of providing Grid Services and that any System Data shared with third parties may be personally identifiable to you or the residence where you System is installed. 

6. INTERFACE WITH 3RD PARTY SERVICES 

Over time, Tesla may provide the opportunity for you to interface the System to one or more Third-Party Products and Services. You will decide whether and with which Third-Party Products and Services you want to interface. Your explicit consent and authorization is required for this interface, and is revocable by you at any time. Once your consent is given for a particular Third-Party Product and Service, you agree that Tesla may exchange information and control data regarding you and your products, including your personal information, in order to enable the interface you have authorized. Once this information is shared with the particular Third-Party Product and Service, its use will be governed by the third party's privacy policy and not by Tesla’s privacy documentation. You acknowledge and agree that Tesla makes no representation or warranty about the safety of any Third-Party Products or Services. Accordingly, Tesla is not responsible for your use of any Third Party Product or Service or any personal injury, death, property damage (including, without limitation, to your home), or other harm or losses arising from or relating to your use of any Third Party Products or Services. You should contact the third party with any questions about their Third Party Products and Services. 

7. ARIBITRATION

PLEASE READ THIS SECTION CAREFULLY. ARBITRATION REPLACES THE RIGHT TO GO TO COURT, INCLUDING THE RIGHT TO A JURY AND THE RIGHT TO PARTICIPATE IN A CLASS ACTION OR SIMILAR PROCEEDING. IN ARBITRATION, A DISPUTE IS RESOLVED BY AN ARBITRATOR INSTEAD OF A JUDGE OR JURY.  

Please carefully read this provision, which applies to any dispute between you and Tesla, Inc. and its affiliates (together “Tesla”).

If you have a concern or dispute, please send a written notice describing it and your desired resolution to energyresolutions@tesla.com.  

If not resolved within 60 days, you agree that any dispute arising out of or relating to any aspect of the relationship between you and Tesla will not be decided by a judge or jury but instead by a single arbitrator in an arbitration administered by the American Arbitration Association (AAA) under its Consumer Arbitration Rules. This includes claims arising before this Agreement, such as claims related to statements about our products.

We will pay all AAA fees for any arbitration, which will be held in the city or county of your residence. To learn more about the Rules and how to begin an arbitration, you may call any AAA office or go to www.adr.org.  

The arbitrator may only resolve disputes between you and Tesla and may not consolidate claims without the consent of all parties. The arbitrator cannot hear class or representative claims or requests for relief on behalf of others purchasing or leasing Tesla products. In other words, you and Tesla may bring claims against the other only in your or its individual capacity and not as a plaintiff or class member in any class or representative action. If a court or arbitrator decides that any part of this agreement to arbitrate cannot be enforced as to a particular claim for relief or remedy, then that claim or remedy (and only that claim or remedy) must be brought in court and any other claims must be arbitrated.

If you prefer, you may instead take an individual dispute to small claims court.

You may opt out of arbitration within 30 days after signing this Agreement by sending a letter to: Tesla, Inc.; P.O. Box 15430; Fremont, CA  94539-7970, stating your name, product, and intent to opt out of the arbitration provision. If you do not opt out, this agreement to arbitrate overrides any different arbitration agreement between us, including any arbitration agreement in a lease or finance contract.