Energy Support

Tesla Virtual Power Plant With DSGS

Join the Tesla Virtual Power Plant (VPP)—support California’s energy grid, earn money and maintain energy security. Explore the benefits, eligibility, compensation, and more about the VPP powered by the California Energy Commission’s (CEC) Demand Side Grid Support (DSGS) program.

Overview of the Program

Enroll your Powerwall in the Tesla Virtual Power Plant with the CEC’s DSGS framework to support California's energy grid during critical times and earn up to $350 a year per Powerwall. Opt in and your Powerwall will be dispatched to supply energy on summer evenings. You'll receive monthly performance-based payments, paid annually, while being able to set your Event Backup Reserve to ensure you always have backup energy during outages.

Benefits

  • Optimize Your Powerwall’s Value: Earn up to $350 annually per Powerwall while participating in the VPP.
  • Stabilize the Grid: Help keep California's energy clean and reliable.
  • Community Strength: Join a vast network of Tesla users, forming the world’s largest distributed battery system.
  • Energy Security: Participate in a way that fits your energy needs and preferences.

Eligibility

Tesla Powerwall owners with or without solar can participate if they:

  • Receive electric services from PG&E, SCE or SDG&E or are Community Choice Aggregation (CCA) customers within these areas
  • Have a residential service account
  • Are not enrolled in a conflicting demand response program

Note: To be eligible for the maximum potential earnings you must provide your utility account number during enrollment.

Enrollment

Eligible users can sign up directly in the Tesla app. Enrollment is processed during the last week of each month, with participation beginning the following month. The Program Administrator will verify your eligibility. If you’re found to be ineligible, you will be removed from the program, but will still have an opportunity to resolve any issues and re-enroll.

Note: To be eligible for the maximum potential earnings you must provide your utility account number during enrollment.

Participation

Once you are enrolled in the program, Tesla will call upon the virtual power plant when wholesale electricity prices exceed $200/MWh. When these events occur, your Powerwall will dispatch energy back to the grid. You can expect events to occur between May and October, from 4 PM to 9 PM. Events will be no longer than two hours. There will be at least one event per month with no more than 35 events each summer.

Note: During events, your Powerwall is automatically dispatched and requires no additional action.

  • Pre-Event: When an event is scheduled, you will receive a notification in the Tesla app and your Powerwall will prioritize charging in preparation.
  • During the Event: Powerwall automatically discharges to support the grid, maintaining levels above your Event Backup Reserve.
  • Post-Event: Once the event is over, Powerwall returns to normal operations.

Controlling Your Participation

You can control your level of participation in the program using the following options in the Tesla app:

  • Setting Event Backup Reserve: Your Event Backup Reserve determines how much energy your Powerwall will keep to power your home.
  • Opting-out of a Single Event: You can opt-out of a scheduled or ongoing event, which will cause your Powerwall to stop reacting to the event and resume normal operation.
  • Suspending Participation: When you suspend your participation, your Powerwall will not react to current or future events until you resume participation.


Note: Because this VPP is performance-based, a lowered level of participation may result in reduced compensation. 

Compensation

Compensation is calculated monthly and is based on your Powerwall’s performance during scheduled events from May to October. You can expect to receive your total payment, which can be up to $350 per Powerwall, after the end of each season.

Monthly capacity payments are listed below for the 2024 program season:

Month Capacity Payment
May $7/kW
June $7.25/kW
July $13.10/kW
August $14.04/kW
September $14.97/kW
October $8.19/kW

Your total payment will be calculated as the sum of your average hourly performance in each month (weighted based on the wholesale market price at the time of the event) multiplied by the capacity payment for that month. If your system was installed prior to July 2023, you will have a baseline of 1 kWh per Powerwall per event hour, which will be offset against your actual delivery within each hour to calculate your net performance. If your system was installed after June 2023, you will have no baseline affecting your performance.

Note: If your system was installed after June 2023, you must provide your utility account number during the enrollment process to be eligible for no event baseline.

For example:

If you delivered exactly 5 kW per hour for every event throughout the season and you’re eligible for no event baseline your total payment would be $350.

Payment

After the season, once performance has been processed by the Program Administrators, request your digital payout through the Tesla app and expect your earnings to be deposited within five to seven business days.

Frequently Asked Questions Show All Hide All

DSGS Program Participation Agreement

The State of California, in Assembly Bill 205 (Ting, Chapter 61, Statutes of 2022), created a virtual power plant “(VPP”) program called the Demand Side Grid Support Program (“DSGS” or “Program”), administered by the California Energy Commission (“CEC”). This Program compensates eligible customers for upfront capacity commitments and per-unit reductions in net energy load during extreme events. Tesla, Inc. (“Tesla”) supports this Program, which is open to customers with one or more eligible Tesla Powerwall(s) (each, a “Device”) that Tesla will control during demand response events (each, an “Event”). Your participation is subject to your agreement to be bound by these terms and conditions with Tesla (“Terms”).

By clicking “Accept Enrollment” you (“You” or “Participant”) acknowledge that You have read these Terms and agree to be legally bound by them.

  1. Eligibility and Enrollment
    Upon completing the necessary information and agreeing to the Terms, Tesla will submit Your application to the CEC. The CEC in its sole discretion shall accept or reject Your participation in the Program. Rejection will result in Your removal from further participation in the program. Eligibility criteria includes, at a minimum, that you: 
    a. Are at least 18 years of age
    b. Have permission to operate from your host utility 
    c. Are not participating in a CAISO Proxy Demand Resource (PDR) or Reliability Demand Response Resource (RDRR)
    d. Have authority to control the Device as set out in Section 2 
     
  2. Acknowledgement
    You acknowledge and agree that:
    1. You meet the eligibility requirements of the DSGS Guidelines and are not enrolled or participating in a conflicting program to the best of Your knowledge.
    2. You will allow the CEC access to all documentation to verify compliance with the program and program performance.
    3. You have not received and will not apply for SGIP incentives (note: this is only applicable if Your permission to operate date is after July 1, 2023).
    4. Your information submitted to the Program is accurate and complete.
     
  3. Authority
    You should not participate in the Program unless You have the authority to control the Device(s) and are the customer of record for the utility account associated with the address at which the Device is installed (“Customer of Record”). By accepting these Terms, You confirm that You have the authority to control the Device and are the Customer of Record, and that Tesla and the CEC can rely on those confirmations in connection with the Program.
     
  4. Grant of Control Over Your Device
    By accepting these Terms, You grant Tesla remote access to control the enrolled Device to automatically charge and/or discharge the Device, during an Event. Tesla may charge or discharge Your Device at any time and to any level but will make efforts to respect Your preferences as configured in the Tesla App, like VPP Backup Reserve During Events and Event opt-out, as applicable.
     
  5. Term
    This Agreement will commence upon the date that You accept these terms and conditions and will continue for 1 year (the “Term”). Thereafter, the Term shall automatically be extended for additional renewal terms of one (1) year each, each anniversary thereof, until either You or Tesla terminates this Agreement as allowed under these Terms.
     
  6. Program Events
    Events will be called subject to the “Program Rules,” which you will be required to review and accept in accordance with this Agreement and a copy of which may be found here: < "