Tesla Virtual Power Plant Powered by Xcel Energy’s Renewable Battery Connect Program
If you’re considering purchasing a Powerwall, join Xcel Energy’s Renewable Battery Connect program and support Colorado’s energy grid while earning money and maintaining your energy security. Learn about the benefits, eligibility, requirements, compensation and more.
Overview of the Program
The Tesla Virtual Power Plant (VPP) connects communities of homes with Powerwall to enhance grid reliability and resiliency. By joining Xcel Energy’s Renewable Power Battery Connect program, your Powerwall will dispatch excess energy to the grid when needed. Your VPP Event Backup Reserve will be set to 40 percent to ensure adequate backup energy supply in case of outages.
Benefits
- Optimize Your Powerwall’s Value: In addition to the upfront incentive you receive, you will earn $100 annually while participating in the VPP.
- Stabilize the Grid: Help keep Colorado’s energy clean and reliable.
- Community Strength: Join a vast network of Powerwall owners in forming one of the world’s largest distributed battery systems.
- Energy Security: Participate in a way that fits your energy needs and preferences.
Eligibility
Xcel Energy-Colorado customers are eligible to participate if you sign up through your Powerwall Certified Installer and you:
- Are at least 18 years of age
- Are working with a Certified Installer to install a Powerwall 3 at your home.
- Have a residential electric account in good standing with Xcel Energy-CO.
- Have a complete interconnection application for battery energy storage with your utility and remain compliant with interconnection requirements.
If eligible, once your system is installed, you will automatically be enrolled in the program.
Enrollment
To enroll in the Renewable Battery Connect program, sign up with yourCertified Installer when purchasing your Powerwall system. They will submit an interconnection application and confirm with Tesla when your Powerwall is ready to participate in the program. You will be notified once your application has been approved and you will have access to the VPP program through the Tesla app.
If you have questions about Renewable Battery Connect, email Xcel Energy at BatteryConnect@xcelenergy.com.
Participation
Once enrolled, your utility will call upon the VPP when the grid needs additional capacity and support. Events may be called as follows:
- Maximum of 60 events can be called per year
- Events can be called throughout the year
- Events will be three hours in duration
- Events can occur on weekdays on non-federal holidays
What to Expect
- Before the Event: You may receive a notification from the Tesla app about scheduled events. Your Powerwall will prioritize charging and preparing for the event.
- During the Event: Your Powerwall will discharge to support the grid until the event ends, it reaches your VPP Event Backup Reserve level, or you opt out.
- After the Event: Powerwall resumes normal operation.
Controlling Your Participation
Powerwall gives you three VPP participation options:
- Set Your Backup Reserve: The VPP Event Backup Reserve is set at 40% as part of the program.
- Opt out of a Single Event: Use the Tesla app to opt out of any scheduled or active event.
- Suspend Participation: Toggle off participation in the Tesla app VPP settings. This will stop Powerwall from reacting to future events until you resume participation.
Compensation
For your participation in the Renewable Battery Connect program, you will earn an upfront and an annual participation incentive that includes:
- $350 per kW or $4,025 for each Powerwall 3 up to a maximum of $5,000 per customer
- Note: Income qualified and disproportionately impacted customers can earn $800 per kW AC of max continuous discharge power (up to 75% of the equipment-only cost). You can check and verify your eligibility through the Colorado Residential Renewable Programs Single-Family Residence Income Verification form.
- $100 annual participation incentive for participating in control events (for five years)
Over the 5-year program, you can earn up to $5,000 in upfront incentives for your Powerwall 3 system and an additional $500 in on-going participation incentives.
Payment
Your on-going program participation payments will be made annually in the form of a bill credit every October on your November electric bill. The incentives earned are based on your Powerwall data as shared by Tesla.
Participation Agreement
Xcel Energy CO (“the Utility”) created a virtual power plant “(VPP”) program called Renewable Power Battery Connect Program (the “Program”) to help reduce stress on the electrical grid, supported by Tesla, Inc. (“Tesla”). This Program compensates eligible customers for supplying energy from their Powerwall back to the grid. 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.
- 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 participation in the Program. Eligibility criteria at a minimum includes that you:- Are at least 18 years of age
- End-user must have a residential electric account in good standing with the Utility
- End-User must have a complete interconnection application for BESS with the Utility and remain compliant with interconnection requirements
- Have authority to control the Device as set out in Section 2
- 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 Utility can rely on those confirmations in connection with the Program. - 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. - 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. - 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 by clicking the link at the bottom of this page with link title: “Program Terms”. Tesla will control the Device to respond during Events and will make reasonable efforts to maximize performance within Your preferences as configured in the Tesla app. - Compensation
The Program provides compensation in the form of monthly bill credits based on the nameplate capacity (kW) of Your Device(s) in addition to the amount of energy (kWh) Your Device(s) discharge during Program Events. You acknowledge and agree that Tesla does not guarantee any specific level of compensation from Your participation. The calculation of the performance and compensation is defined by the Utility in the Program Rules published on their website. You agree that the Utility will provide payment to You (“Compensation”) for Your Device’s contribution to the VPP. The Compensation payments referenced herein, if any, are the only compensation that You will receive from Tesla or the 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 as well as for the general use of Your Device. - Your Device Data and Other Information
Participation in the Program means that the Utility and Tesla will have access to certain types of Your personal identifiable information and energy use data, including, but not limited to, Your name, address, energy usage, utility account number, Device information, data generated from the Program and other personal information, collectively referred to as Confidential Information. You authorize the Utility and Tesla, and their respective employees and representatives, to use and exchange the Confidential Information to administer the Program and in accordance with Tesla’s Customer Privacy Policy, as applicable. (Even though this policy is a separate document from these Terms, it is considered part of these Terms). You further authorize Tesla and the Utility to provide Your Confidential Information to relevant regulatory bodies upon their valid, legal request or as otherwise required by law. You also authorize Tesla or the Utility to use or share Confidential Information that is anonymized without further need for Your consent provided that it does not contain any of Your personal identifiable information. - Program Communications
By accepting these terms and conditions, you consent to Tesla, your Utility and other Program agents communicating with you for the purpose of enrolling you and managing your participation in the Program by email, SMS or telephone, including without limitation placing calls to wireless and other phone numbers using automatic dialing systems and recorded voice technology, notwithstanding any registration pursuant to federal, state or local Do-Not-Call lists or similar registries. - Enrollment Into Other VPP Programs
You agree that Your enrollment into the Program means that You are interested in participating in Virtual Power Plant programs. You grant Tesla the right to apply on Your behalf, unenroll You from programs and enroll you in alternative or follow-on VPP programs that are, in Tesla’s sole discretion, similar to the Program. If this occurs, Tesla will notify You of the change and provide You with an option to unenroll. - 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
You agree that either of us may choose to terminate Your participation in the Program, at any time and for any reason. If Tesla elects to terminate Your participation in the Program, Tesla will provide You with [5] days' written notice to the email address You maintain with Tesla in Your Tesla app. If You elect to terminate Your enrollment in the Program, you may do so by contacting Xcel Energy CO BatteryConnect@xcelenergy.com. and they will process Your request. - General
- Entire Agreement. Except as otherwise stated herein, these terms and the Program Rules constitute the entire Agreement between You and Tesla concerning the Program.
- No Assignment. You may not assign this Agreement without Tesla’s prior written consent.
- Severability and Waiver. If any provision herein is invalid or unenforceable, the remaining provisions will remain in full force and effect.
- Survival. Termination of the Program will not affect any obligations and rights under this Agreement, including Sections 7, 8, 10, 12 and 13, which are intended to survive such termination.
- Governing Law. This Agreement is governed by California law.
- Amendments. This Agreement may be amended by Tesla from time to time upon 5 days’ written notice to the email address You maintain with Tesla in the Tesla app 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 resolutions@tesla.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.; P.O. Box 15430; Fremont, CA 94539-7970 and include your name, your order number, the name of the product you ordered 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.