Tesla's California Virtual Power Plant

Tesla Virtual Power Plant California

Help the community while earning money!

Tesla's Virtual Power Plant (VPP) program connects Powerwall owners across California to create a large supply of sustainable energy during periods of peak demand during the summer.

Customers with Powerwall can earn up to $350 per year for every Powerwall enrolled in the VPP!

The Tesla Virtual Power Plant in California is powered by the California Energy Commission’s (CEC) Demand Side Grid Support (DSGS) program. California customers of PG&E, SCE, or SDG&E can participate, as long as they're not enrolled in a conflicting demand response program.

Get the most out of your Powerwall with Tesla Virtual Power Plant. 

  • Reduce the payback period on your Powerwall investment, while supporting the environment and stabilizing the grid. 
  • Join a vast network of Tesla users, forming the world’s largest distributed battery system. 
  • Customize your participation to meet your needs. 

How Does Tesla’s VPP Work? 


Enrollment is easy, and can be done directly in the Tesla app. Customers should enroll by May 15 to participate in all events over the summer (May through October). After May 15, customers can be enrolled on the first day of each month. For example, if you apply to the program on the second day of June, July 1 will be your first active day in the program. 

Performance Calculations and Disbursements

The amount you’ll earn is calculated monthly, and is based on the average net discharge across all events in that month. Opting out of events will negatively impact your overall performance for a site. The price per kW performance varies by month: 

  • May — $7.00/kW
  • June — $7.25/kW
  • July — $13.10/kW
  • August — $14.04/kW
  • September — $14.97/kW
  • October — $8.19/kW

The average hourly performance each month is weighted based on the wholesale market price at the time of the event and multiplied by the capacity payment for that month.

Tesla will receive funds from the CEC after the season ends in October, then Tesla will disburse payments to customers via in-app ACH deposit.

VPP Events

A virtual power plant event will be triggered when wholesale electricity prices exceed $200/MW. Events will occur between 4pm and 9pm on any day of the week. Tesla guarantees there will be no more than 35 events per season, with a minimum of at least one event per month. 

Customer Opt Out

Customers can use the Tesla app to opt out. When I customer opts out of one or more events, they are counted as zero performance.

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