Maximise Your Investment in Solar with the Tesla Virtual Power Plant

GES Energy • October 19, 2021

While Tesla is best known for its sleek line of innovative electric vehicles, the company also designs, develops, manufactures and sells solar energy systems for homes. Their products in this space are also cutting edge and include solar roof tiles, solar panels, and the Powerwall – a cutting-edge battery storage system with advanced capabilities.



Tesla has also just recently introduced a program called the Tesla Virtual Power Plant (VPP), designed to help home solar energy users make the most of their investment in renewable energy technology.

In this blog post, we will talk about the Tesla VPP and explain the many benefits of participating in the program.

What is the Tesla Virtual Power Plant?

The Tesla VPP connects a network of solar-powered homes – particularly those that have solar and Powerwall battery systems installed – and allows them to work together to generate power that is many times cleaner and faster than traditional energy sources, which we all know to be very harmful to the environment. The program is an initiative by Tesla that aims to speed up the world’s transition to clean sustainable energy by making it more appealing to residential consumers.

Am I Eligible to Join the Program?

The Tesla Virtual Power Plant is part of the Tesla Energy Plan. If you want to participate in the Tesla Virtual Power Plant, you must first be eligible for the Tesla Energy Plan. Tesla sets these requirements to ensure that participating homes can match the program’s intended capabilities.

The eligibility requirements are as follows:

  • Must be in a residential location
  • Must have a PV inverter capacity of no more than 15 kVA (per Powerwall)
  • Must have no zero-export restrictions
  • Must have a smart meter installed (or a smart meter can be installed)
  • Must have internet connection available

Why Participate in the Program?

Here are some of the best reasons for participating in the Tesla VPP:

You Can Earn from your Powerwall

By joining the Tesla Virtual Power Plant, you can use your Powerwall to support the grid in times of need and earn monthly Grid Support Credits for your participation. The number of Powerwall units you have plays a factor in how many credits you can earn, but basically the more Powerwall units you own – the more credits you get. Grid Support Credits include earnings from the VPP event, as well as the cost of energy required for your participation.

You Can Receive Competitively Low Energy Rates

With the help of Tesla’s best-in-class app, the Powerwall can shift your grid usage to times of the day where electricity costs are lower. This allows you to enjoy competitively low energy rates throughout the day without even having to lift a finger. The app essentially does all the thinking for you. The feed in tariff also still applies to any of your solar exports, which means you’ll receive compensation for any energy exported from your Powerwall or your solar system.

You Can Get Immunity from Power Outages

Power outages can damage your computers and electronics, particularly the electrical surge that happens when the power goes back up. There is also the inconvenience factor that comes along with a sudden blackout. However, you can protect your home against the negative effects of power outages by participating in the program. The Tesla VPP, which always keeps a minimum of 20% energy reserve for emergency uses, will immediately supply your household with a reliable source of backup electricity in the event of an outage.

You Can Enjoy Great Warranties

Tesla’s standard manufacturer warranty applies in the first 10 years of the unit. Customers who acquire a new Powerwall unit and join the Tesla Energy Plan within 30 days of installation will receive an additional 5-year warranty, making it a total of 15 years warranty. Meanwhile, customers who remain on the Tesla Energy Plan after the first 10 years of use will receive an extended warranty of 5 years. 

You Can Help Stabilise the Grid

The Tesla VPP enables solar users to manage some of the energy stored in their Powerwall and discharge them into the grid when it is in critical need of additional power, significantly reducing the risk of power outages in the community and helping to stabilise the grid.

You Can Join Other People with the Same Goal

Join other Powerwall users who are making a positive impact on both the planet and the grid by generating clean renewable energy for the entire community and reducing everyone’s reliance on fossil fuels. As part of the VPP, the impact you will make is much more significant than what you would have made with traditional demand response programs.

Takeaway

The Tesla Virtual Power Plant makes it possible for domestic solar energy users to make the most of their investment in solar technology by unlocking earnings from their Powerwall while allowing them to enjoy competitively low energy rates. Not only that, but being a part of the VPP also enables solar energy users to support the grid, prevent power outages, and make a bigger impact on the environment.



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    I hope you enjoy reading this blog post.


    Greentech Engineering Solutions (GES) helps residents, businesses and industry transform energy systems for a smarter, cleaner future. As an EPC Solar specialist we manage projects from concept to feasibility, finance, engineering, procurement, construction and beyond.

    Speak to one of our specialists →

I hope you enjoy reading this blog post.

GES Energy helps residents, businesses and industry transform energy systems for a smarter, cleaner future. As an EPC Solar specialist we manage projects from concept to feasibility, finance, engineering, procurement, construction and beyond.

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