How Does the Tesla VPP (Virtual Power Plant) Work?

Tesla allows customers with Powerwalls to opt into aggregated groups of energy devices in order to form virtual power plants (VPP).

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Tesla mentions that:

The combined energy of these sources is used to support the electrical grid. Participating members can give the VPP program permission to use their energy as a resource during high demand events and generate value through their participation.

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How does the Tesla VPP work?

Home batteries like the Powerwall stabilize the grid and make money for the owner.

1. Opt in on the “virtual power plant” tab in your Tesla app
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2. Set your backup % (estimated power for home use during emergency) prior to the event, the rest will be used during the event
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3. Get paid $2 per kWh sent to the grid during the event from your Powerwall(s) (depends on utility you're subscribed to and Powerwall settings)

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What is Tesla’s Virtual Power Plant (VPP)?

The Tesla VPP is thousands of Powerwalls (i.e. home battery) aggregated together selling extra energy to the grid when called upon due to extreme weather, peak events or other.

Learn more about the Tesla VPP here.

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How Can I Earn Money From My Energy Devices (Powerwall, etc.)?

If you want to earn income and reduce the payback period of your energy devices like home battery systems and electric vehicles, sign up for Currents.

We'll identify opportunities for you to earn income from your home energy devices.

You can join our virtual power plant, sell solar credits in select states, switch to more affordable electricity rates and get smarter about your home energy.