Energy Support

Tesla Virtual Power Plant With DSGS

    As of March, 2026, Tesla is not accepting new enrollments for the Demand Side Grid Support (DSGS) VPP program. Eligible customers can now enroll in the Emergency Load Reduction Program (ELRP) instead.

    As of March, 2026, Tesla is not accepting new enrollments for the Demand Side Grid Support (DSGS) VPP program. Eligible customers can now enroll in the Emergency Load Reduction Program (ELRP) instead.

    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, SDG&E or LADWP 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.

    Emergency Load Reduction Program

    The Emergency Load Reduction Program (ELRP) is a program offered by PG&E, SCE and SDG&E where you can earn $2.00 for every additional kWh your Powerwall delivers during an event. Typically, customers can earn up to $16 per Powerwall per event, resulting in earning between $100 and $450 per Powerwall per year, depending on the number of emergency events during the summer. Additional ELRP details vary by utility:

    Frequently Asked Questions Show All Hide All
    Program Participation Agreements