Tesla Virtual Power Plant With PG&E

Become a part of the largest distributed battery in the world and help keep California’s energy clean and reliable. Offered by Pacific Gas and Electric Company (PG&E), the Emergency Load Reduction Program (ELRP) was created to allow you to support the grid while also earning compensation and maintaining your energy security. Learn more about program benefits, eligibility, compensation and more.

• Overview
• Benefits
• Eligibility
• Membership
• Compensation
• Demand Side Grid Management
• Frequently Asked Questions

Overview of the Program

By becoming a part of the Tesla Virtual Power Plant (VPP) with PG&E, your Powerwall will be dispatched when the grid needs emergency support. Through the Emergency Load Reduction Program (ELRP), you will receive $2.00 for every additional kWh your Powerwall delivers during an event.  As a member, you can adjust your Backup Reserve to set your contribution, while maintaining backup energy for outages.

Back to Top

Benefits

This community driven program is designed to:

• Stabilize California's grid with clean and reliable energy
• Unite the Tesla community to form the largest distributed battery in the world
• Increase your Powerwall value with program-based incentives
• Maintain your energy security with program participation best suited for you
   

Back to Top

Eligibility

Powerwall owners with or without solar are eligible to participate in PG&E's ELRP if they:

• Receive electric services from PG&E or are Community Choice Aggregation (CCA) customers located within the PG&E service territory
• Have a residential service account
• Are not enrolled in a non-utility demand response program or another virtual power plant
• Have a valid Rule 21 interconnection agreement

You will have the opportunity to sign up in the Tesla app, pending approval from PG&E, who will review your information to determine eligibility. If you are determined to be eligible, you will be enrolled automatically.

Back to Top

Membership

Once you are enrolled in the program, Tesla and PG&E will call upon the virtual power plant when the grid operator, California Independent System Operator (CAISO) declares an alert, warning or emergency in response to challenging grid conditions. Tesla and PG&E may also call events at other times to meet the program minimum of 20 hours of events. These additional events may include responses to CAISO Flex Alerts.

What to Expect

Before the Event

When an event is scheduled, you will receive a push notification informing you of event times. You can expect your Powerwall system to prioritize charging and prepare for an event after one is scheduled. An event may be scheduled a day ahead, but circumstances may require much less notice.

During the Event

When the event begins, you will receive a push notification reminding you of the event end time as your Powerwall begins to discharge to support the grid. Your Powerwall will discharge either until the event ends, or until it reaches your selected Backup Reserve level. Powerwall will export a safe amount of power, which may be similar to onsite solar export. This may not be the full power capacity of your Powerwall.

After the Event

At completion of the event, Powerwall will resume normal operation.

Controlling Your Participation

Powerwall gives you three options for controlling your participation in Tesla VPP events.

Set your Backup Reserve

Powerwall will not dispatch to an energy level below your Backup Reserve. Setting your Backup Reserve is the best way to control how much energy you elect for participation and how much you maintain in case of an outage.

Opt-out of a Single Event

When an event is scheduled or active, Powerwall gives you the option to opt-out of the event through the Tesla app. When you opt-out, Powerwall will stop reacting to the event and resume normal operation.

Suspend Participation

You have a Tesla VPP participation toggle in the ‘Settings’ menu of the Tesla app. If you turn this off, your Powerwall system will not react to events when they are scheduled, and you will not be notified of the events. You are still enrolled in the program, however, and can resume your participation at any time by toggling your participation back on.

Back to Top

Compensation

For the additional kWh that your Powerwall delivers, you will receive a payment for the incentive through the Emergency Load Reduction Program (ELRP).

Incentives

The Tesla and PG&E ELRP will compensate you $2.00 for every additional kWh that your Powerwall delivers during an event beyond typical behavior. As of 2024, there will be a minimum of seven events each year. Typically, customers can earn up to $20 per Powerwall per event. If the California grid has a significant number of emergencies, however, there could be as many as 60 hours of events. This can result in customers earning between $200 and $600 per Powerwall, depending on the number of emergency events during the summer. Other factors, including your Powerwall’s energy capacity and charge behavior, play a role into your total compensation.

Payment

At the end of the season, which is October 31, Tesla will calculate your total payment, in the form of credits, based on your Powerwall’s overall contribution. You can then request a digital payout of your earned credits in the Tesla app. Once you have requested a payout, you can anticipate the deposit within five to seven days.

2022 Performance

California experienced an unprecedented heat wave starting Labor Day weekend in 2022 that caused record levels of electricity demand and grid stress. Thanks to participating Powerwall owners, the Tesla Virtual Power Plant proved to be a growing and consistent resource for California during this time.

Below is a summary of fleet-level values based on the peak recorded discharge. On average, customers received about $20 per event in 2022. Your compensation will be calculated based on your Powerwall’s individual contribution.

Participating customers who want to support the grid more can consider lowering their Backup Reserve to only the energy they need for an outage.

Back to Top

Demand Side Grid Management

The DSGS VPP compensates customers based on the average contribution of a Powerwall site per month, resulting in a more reliable payout. On average, DSGS VPP customers can earn $350 per Powerwall during the summer. Program payments are determined based on monthly average performance multiplied by a monthly capacity payment. Learn more about how the DSGS VPP works.

Back to Top