Tesla Virtual Power Plant in Puerto Rico
Participate in the Battery Emergency Demand Response Program and be part of the solution to support the Puerto Rico grid while also earning compensation and maintaining your energy security. Learn more about program benefits, eligibility, compensation and more.
Overview of the Program
Tesla Virtual Power Plant (VPP) connects distributed batteries installed in residential homes, enhancing Puerto Rico's grid reliability and resiliency. By joining the Battery Emergency Demand Response Program, your Powerwall will be dispatched to provide emergency support when the grid needs it most. Participation allows you to earn $1 for every kWh your Powerwall supplies during such events. You can adjust your VPP Backup Reserve to determine the level of your contribution while ensuring an adequate backup energy supply for outages.
- Stabilize Puerto Rico’s Grid: The extra capacity your Powerwall provides could help avoid or reduce blackouts in a severe emergency.
- Unite as a Tesla Community: Team up with other Powerwall owners in Puerto Rico to build a more resilient and reliable grid.
- Maintain Your Energy Security: Powerwall will never discharge below your VPP Backup Reserve, allowing you to maintain backup energy for outages.
- Earn Compensation: You will receive $1 for every kWh your Powerwall provides during an event. You don’t have to change your energy usage behavior to participate.
Tesla Powerwall owners are eligible to participate in the Battery Emergency Demand Response Program if they:
- Have a residential customer’s service account that is currently registered in LUMA’s Net Energy Metering program
- Have a customer’s service account that is not simultaneously enrolled with another Aggregator
You will have the opportunity to sign up in the Tesla app and the program will review your information to determine eligibility. If you apply and are determined to be eligible, you will be enrolled automatically.
Once you are enrolled in the program, your utility and Tesla will call upon the VPP when the grid operator’s forecast or actual system conditions show that there may not be adequate capacity to support the grid. Your utility and Tesla may also call events at other times to meet the program minimum of 50 events per program year.
What to Expect
Before the Event
When an event is scheduled, you may receive a push notification informing you of the event times. You can expect your Powerwall system to prioritize charging and preparing for an event after the event is scheduled. An event may be scheduled a day ahead, but circumstances may require much less notice.
During the Event
When the event begins, your Powerwall will begin discharging to support the grid. Your Powerwall will discharge until the event ends, until it reaches your adjusted VPP Backup Reserve level, or you opt out of the event.
After the Event
At completion of the event, Powerwall will resume normal operation.
Powerwall gives you three options for controlling your participation in VPP events.
Set your Backup Reserve
When you join the VPP, your backup reserve during events (VPP Backup Reserve) will be set at 20% to support your earnings. This is a new setting that’s different than the traditional Backup Reserve setting. You can adjust your VPP Backup Reserve to control how much energy you elect for participation during events separately from how much you maintain in case of an outage at any time. Setting a lower backup reserve for VPP events allows you to share more energy from your Powerwall with the grid and earn more money.
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.
You have a 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.
The program will compensate you $1 for every kWh that your Powerwall delivers during an event.
Your compensation depends on:
- Participating energy capacity of your system: This depends on the number of Powerwalls and your VPP Backup Reserve. Lower your VPP Backup Reserve to earn more.
- How fully charged your Powerwall is for the event: There may not be enough solar energy or time to fully charge the Powerwall before an event.
- Whether the Powerwall can export all available energy during the event: Powerwall may not have time to safely discharge all participating energy during the event. Powerwall may need to limit exports to safe levels.
The following examples demonstrate how compensation can vary for different Powerwall owners.
A one-Powerwall system with an event Backup Reserve of 20% that is fully charged at the start of an event has 13.5 kWh * (100%-20%) = 10.8 kWh to contribute during that event.
At $1 per kWh, this could be worth $10.80 for this event.
A two-Powerwall system with a Backup Reserve of 40% that is fully charged at the start of an event has 2*13.5 kWh * (100%-40%) = 16.2 kWh to contribute during that event.
At $1 per kWh, this could be worth $16.20 for this event.
Four times per year, Tesla will calculate your kWh contribution and share this and your Powerwall data with your utility. Once Tesla receives the compensation from the utility, Tesla will pass it along to you. It may take several months after events start for the first payments to be sent to you.
LUMA & Tesla Virtual Power Plant Customer Participation Agreement
The Battery Emergency Demand Response Program (“BEDRP” or the “Program”) is a Virtual Power Plant (VPP) administered by PREPA/LUMA (your “Utility”) to help reduce stress on the Puerto Rico electrical grid. Tesla participates in the BEDRP as an “Aggregator”. As a participating Aggregator, Tesla will be your exclusive point of contact in relation to the Program and interface with your Utility and other entities on your behalf unless otherwise required.
This Program 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 (the “Terms”). By clicking “Accept Enrollment” you (“You” or “Participant”) acknowledge that you have read and understand these Terms and those of the Program and agree to be legally bound by them.
- Eligibility and Enrollment
Upon completing the necessary information and agreeing to the Terms, Tesla will submit Your application to Your Utility. Your Utility, in its sole discretion, shall accept or reject Your application for participation in the Program. Eligibility criteria includes, at a minimum, that you:
a. Have reliable internet access
b. Are at least 21 years of age
c. Are not simultaneously enrolled with another aggregator in the Program
d. Have authority to control the Device as set out in Section 2
By clicking "Accept Enrollment," you acknowledge and agree:
a. That this VPP Program Participation Agreement (the “Agreement”) is only between you and Tesla – specifically, your Utility is not a party to this Agreement
b. You have read and understand the schedule and terms of your compensation for participating in the Program (as set forth in Section 7)
c. You understand that you will not receive any compensation or payments from your Utility
d. That if You have any questions about payments or services, You should contact Tesla
e. That this Program is not a part of your electric service contract with Your Utility
f. That any Program compensation you may receive will not appear in Your Utility bill
g. Your Utility will not have any obligations to You in connection with any services, actions or omissions of Tesla relating to the Program
h. You are not currently enrolled with another aggregator in the Program and will not simultaneously enroll with another aggregator or demand response program during the term of this Agreement
To be eligible to participate in the Program, You must: (i) have the exclusive authority to control the Device; and (ii) be the customer of record for the utility account associated with the address at which the Device is installed (“Eligible Customer”). By accepting these Terms, You confirm that You are an Eligible Customer, and that Tesla and Your Utility can rely on those confirmations in connection with the Program.
- Grant Of Control Over Your Device
By accepting these Terms, You agree to enroll the Device(s) (each, an “Enrolled Device”) and to grant Tesla remote access to control the Enrolled Device and to automatically charge and/or discharge the Enrolled Device, at Your Utility’s direction, during an Event. You will have the ability to set a minimum level of charge as a backup reserve (“Backup Reserve”). Tesla will not draw Your Enrolled Device’s state of charge below Your designated Backup Reserve and will not discharge Your Enrolled Device when the state of charge is below the Backup Reserve. You will also have the ability to opt out of an individual events or suspend participation in Events. Except for honoring Your Backup Reserve and Event participation opt-outs, Tesla may charge or discharge Your Enrolled Device at any time and to any level.
This Agreement will commence upon the date that You accept these terms and conditions and will continue for 1 year or until the end of the Program, whichever occurs sooner (the “Term”). Thereafter, the Term shall automatically be extended for additional renewal terms of one (1) year each, each anniversary thereof, until either the Program ends or You or Tesla terminates this Agreement as allowed under these Terms.
- Utility Events
Events will be called by Your Utility subject to the “Program Rules” that you will be required to review and accept in accordance with this Agreement and a copy of which may be found on LUMA's website. Tesla will control the Device to respond during Events and will make reasonable efforts to maximize performance within Your Backup Reserve, Event preferences, and other settings, however, no specific level of performance is guaranteed.
The Program provides compensation based on the kWh energy that Tesla discharges from Your Device in response to Events (“Compensation”). The calculation of the Compensation is defined by Your Utility in the Program Rules. You agree that Tesla is the entity responsible for collecting Program funds from Your Utility, and in turn, Tesla will directly pay You $1/kWh from the Compensation earned by Your participation in the Program through Your Device on an annual basis or more frequently as determined by Tesla. The Compensation payments referenced herein, if any, are the only compensation that You will receive from Tesla and Your Utility for participating in the Program. You are responsible for all other costs of participating in the Program, including, but not limited to, Your cost of electricity to charge Your Device(s) as well as for the general use of Your Device(s).
- Your Device Data and Other Information
You agree to participate in and to complete surveys intended to enhance the Program.
- No Warranty; Disclaimer
Tesla expressly disclaims all warranties of any kind relating to this Program, whether express, implied or statutory including but not limited to any implied warranties for conditions, merchantability, fitness for a particular purpose, title, non-infringement or misappropriation of intellectual property rights.
- Limitation of Liability
In no event will Tesla be liable for any direct, indirect, incidental, special or consequential damages arising in connection with the Program, including but not limited to, Your Device’s reduced charge during a power outage causing a loss of power or any other loss of power. If You are dissatisfied with the Program, any of these Terms, or believe Tesla has breached these Terms, Your sole and exclusive remedy is to discontinue participation in the Program.
Termination By Tesla: Tesla has sole discretion to terminate Your participation in the Program, at any time without cause by providing You with written notice.
Termination by You: You may terminate Your enrollment in the Program at any time for any reason by contacting Tesla Customer Support. There is no cost to You associated with termination.
- Further Acknowledgements
You acknowledge that this Program is being implemented pursuant to Applicable Law (Act 17-2019, known as the Puerto Rico Energy Public Policy Act, and Act 57-2014, known as the Puerto Rico Energy Transformation and RELIEF Act, as amended) and applicable Energy Bureau regulations ( Regulation on Demand Response, Regulation 9246 approved by the Energy Bureau, as clarified, waived or conditioned by the Energy Bureau’s Resolution and Order of June 15, 2023 in Case No. NEPR-MI-2022-0001, resolutions and orders (the Resolutions and Orders issued by the Energy Bureau in Case No. Case No. NEPR-MI-2021-0006, In Re: Demand Response Plan Review, Implementation, and Monitoring, and Case No. NEPR-MI-2022-0001, In Re: Energy Efficiency and Demand Response Transition Period Plan), and that these laws, regulations, resolutions and orders may be modified, amended or revised at any time; and that the Puerto Rico Energy Bureau may issue at any time an order or directive to terminate or modify the Program. Any modification or termination of the Program as a result of any of the foregoing, will be at no liability or penalty to Tesla or Your Utility.
i. Entire Agreement. Except as otherwise stated herein, these terms and the Program Rules constitute the entire Agreement between You and Tesla concerning the Program.
ii. No Assignment. You may not assign this Agreement without Tesla’s prior written consent.
iii. Severability and Waiver. If any provision herein is invalid or unenforceable, the remaining provisions will remain in full force and effect.
iv. Survival. Termination of the Program will not affect the obligations and rights under this Agreement, which is intended to survive such termination.
v. Governing Law. This Agreement is governed by Puerto Rico law.
vi. Amendments. This Agreement may be amended by Tesla from time to time upon 5 days’ notice to Participant, which will be sent to Participant, with reference on the pilot support page which can be accessed through the Tesla app.
- Tesla Arbitration Requirement
Agreement to Arbitrate
Read this part carefully because it means you are agreeing that any unresolved dispute between you and Tesla will not be decided by a judge or jury in a public courtroom, but instead by a single arbitrator in a private arbitration.
If you have a dispute arising out of or relating to any aspect of this Agreement and the relationship between you and Tesla, Inc. or its affiliates (which we call “Tesla”), send us an email to email@example.com, describing your dispute and how you would like it resolved. If it is not resolved within 60 days from the date of your email, you agree that your dispute can only be resolved by a single arbitrator in an arbitration administered by the American Arbitration Association (AAA) under its Consumer Arbitration Rules. This includes claims arising before you ordered your System (such as claims related to statements Tesla made about our products). We will pay all AAA fees for any arbitration, which will be held in the city or county of your legal residence. To learn more about the Rules and how to begin an arbitration, you can call any AAA office or go to www.adr.org. The arbitrator can only resolve disputes between you and Tesla, and cannot consolidate claims from others without consent from you, Tesla, and the others. You can only bring claims in arbitration against Tesla in your individual capacity and not as a plaintiff or class member in any class or representative action (and the same is true for Tesla). If a court or arbitrator decides that any part of this agreement to arbitrate cannot be enforced as to a specific claim for relief or remedy (such as what lawyers call “injunctive” or “declaratory” relief), then that claim or remedy (and only that claim or remedy) will be carved out of the arbitration and can be filed in court; all other claims must be arbitrated. If you prefer, you can take your individual dispute to a small claims court instead. If you don’t want to agree to arbitration, you can "opt out” of arbitration by sending us a letter within 30 days after placing your initial order for your System. Send the letter to Tesla, Inc.; 1 Tesla Road, Austin, Texas, 78725 and include your name, identify yourself as a Tesla VPP Program Participant in Puerto Rico, and a statement explaining your desire to opt out of arbitration. If you do not opt out, your agreement to arbitrate overrides any different arbitration agreement between us, including any arbitration agreement in a lease or finance contract.