Tesla's new virtual power plant program for Tesla Powerwall users in California launches in partnership with the gas and electric firm PG&E.
The latest program seeks to find an end to blackouts in California, allowing Tesla Powerwall owners to participate in making it possible.
LOS ANGELES, CA - APRIL 30: Elon Musk, CEO of Tesla, with a Powerwall system on display unveils suite of batteries for homes, businesses, and utilities at the Tesla Design Studio April 30, 2015 in Hawthorne, California.
Tesla's New Virtual Power Plant for Powerwall Users in California
As per a news story by The Verge, the giant electric vehicle (EV) maker owned by Elon Musk teamed up with PG&E, which supplies electricity in California, to debut the virtual power plant program.
The partnership between the two firms vows to prevent blackouts even when there is some sort of energy shortage.
According to a recent report by Electrek, the virtual power plant program began its test in California in 2021.
But during that time, the only way Powerwall users could join is to volunteer. So, they give away their electricity straight from the battery packs to the grid during looming blackouts without getting anything in return.
This time around, Tesla debuts its virtual power plant program, which now compensates Powerwall owners for the electricity they provide in times of emergencies to keep the lights on.
Tesla Virtual Power Plant: How Much It Pays Powerwall Owners
To be more precise, the program now pays participating Powerwall owners $2 per kilowatt-hour that they provide when the grid starts scrambling for power.
The Verge notes that the compensation potentially begins when the grid operator of California, CAISO, issues a warning, emergency, or energy alert.
Tesla touts that its participating customers could possibly "help form the largest distributed battery in the world - potentially over 50,000 Powerwalls."
AUCKLAND, NEW ZEALAND - MAY 13: The Tesla Powerwall battery is shown installed at Rongomai School on May 13, 2016 in Auckland, New Zealand.
The Verge notes that the giant EV maker is also saying that the virtual power plant could potentially replace the gas-fired power plants. The latter serves as a backup when the power supply fails to keep up with the raging demand.
Aside from the monetary incentives, which may attract numerous Powerwall users, Tesla lays out other benefits for joining the program.
The automaker says that it helps stabilize the grid of California. And at the same time, it also cleans the grid, forcing it to use clean energy in times of emergency.
Read Also: Tesla Model X, Model S's NEW Swivel Screen Arrives - Here's a Close Look
Tesla Virtual Power Plant
It is worth noting that this is not the first rodeo of Tesla to set up a virtual power plant program.
In fact, The Verge reports that the Musk-led firm has been working on a similar program in Australia for some time now.
The virtual power plant project is now establishing its foothold in the United States, kicking off in California with plans to bring it to Texas.
Related Article: Elon Musk Tesla Solar Panel-Powerwall Bundle Update: New Powerwall+ Specs, Design Leaked!
