tesla powerwall owners made up to $500 in the first year of the virtual power plant

Tesla Powerwall owners in California making up to $500 in the first year
The Tesla Powerwall program was launched in the summer of 2022

Tesla Powerwall owners in California virtual power plan report were known to be making $500 in the first year. The program started in the summer, and the results are positive so far. It appears that in a real way the cost of owning home energy storage will be lowered. The Virtual Power Plant (VPP) consists of distributed energy storage systems. They include Tesla Powerwalls that can be used in concert that provide grid services.

tesla powerwall owners made up to $500 in the first year of the virtual power plant
Image credits- Electrek

Furthermore it also avoids the use of polluting and expensive speaker power plants. In 2021, Tesla launched a VPP pilot program in California, where Powerwall owners would join voluntarily without compensation to let the VPP pull power from their battery packs when the grid needed it. It helped Tesla prove the usefulness of such a system. Following the pilot program, Tesla and PG&E (the electric utility covering Northern California) launched the first official virtual power plant through the Tesla app with compensation in June.

This new version of the Virtual Power Plant actually compensates Powerwall owners $2 per kWh that they contribute to the grid during emergency load reduction events. Homeowners are expected to get between $10 and $60 per event. Shortly after, Tesla’s California VPP expanded to Southern California Edison (SCE) to now cover most of the state, and the VPP had its first event, and it was extremely successful.

Powerwall range

It seems to be on the higher side of the payment range as this homeowner has three Powerwalls. He said that the compensation was for delivering 297 kWh to the grid through 10 events over 26 hours with the VPP. Most other homeowners are reporting payments between $300 and $400. That’s not bad, especially considering that it was for about half the year. As the VPP expands and becomes more efficient, it’s possible that we could see most owners earning between $500 to $1,000 a year.

It could significantly contribute to reducing the cost of ownership of the Tesla Powerwall or other home energy storage devices, which are becoming increasingly popular to combine with solar power as well as backup power. Those who join the new Tesla Electric service will become part of an automated system that sells energy from owners’ Powerwalls to the grid and vice-versa when most viable. And when pulling from the grid, Tesla provides offsets from renewable energy sources. This comes as Texas is easing out of a summer heatwave and dealing with a crypto mining expansion that caused the state to break its peak power demand record at over 78 gigawatts of electricity.