Tesla Virtual Power Plant With SCE

Become a part of the largest distributed battery in the world and help keep California’s energy clean and reliable. Offered by Southern California Edison (SCE), the Emergency Load Reduction Program (ELRP) was created to allow you to support the grid while also earning compensation and maintaining your energy security. Learn more about program benefits, eligibility, compensation and more.

• Overview
• Benefits
• Eligibility
• Membership
• Compensation
• Demand Side Grid Management
• Frequently Asked Questions

Overview of the Program

By opting into the Tesla Virtual Power Plant (VPP) with SCE, your Powerwall will be dispatched when the grid needs emergency support. Through the Emergency Load Reduction Program (ELRP), you will receive $2.00 for every additional kWh your Powerwall delivers during an event. As a member, you can adjust your Backup Reserve to set your contribution, while maintaining backup energy for outages. 

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Benefits

This community driven program is designed to:

• Stabilize California's grid with clean and reliable energy
• Unite the Tesla community to form the largest distributed battery in the world
• Increase your Powerwall value with program-based incentives
• Maintain your energy security with program participation best suited for you

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Eligibility

Powerwall owners with or without solar are eligible to participate in SCE's ELRP if they:

• Receive electric services from SCE or are Community Choice Aggregation (CCA) customers located within the SCE service territory
• Have a residential service account
• Are not enrolled in a non-utility demand response program or another virtual power plant
• Have a valid Rule 21 interconnection agreement

You will have the opportunity to sign up in the Tesla app, pending approval from SCE, who will review your information to determine eligibility. If you are determined to be eligible, you will be enrolled automatically.

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Membership

Once you are enrolled in the program, Tesla and SCE will call upon the virtual power plant when the grid operator, California Independent System Operator (CAISO), declares an alert, warning or emergency in response to challenging grid conditions. Tesla and SCE may also call events at other times to meet the program minimum of 20 hours of events. These additional events may include responses to CAISO Flex Alerts.

What to Expect

Before the Event

When an event is scheduled, you will receive a push notification informing you of event times. You can expect your Powerwall system to prioritize charging to prepare for an event after one is scheduled. An event may be scheduled a day ahead, but circumstances may require much less notice.

During the Event

When the event begins, you will receive a push notification reminding you of the event end time as your Powerwall begins to discharge to support the grid. Your Powerwall will discharge either until the event ends, or until it reaches your selected Backup Reserve level. Powerwall will export a safe amount of power, which may be similar to onsite solar export. This may not be the full power capacity of your Powerwall.

After the Event

At completion of the event, Powerwall will resume normal operation.

Controlling Your Participation

Powerwall gives you three options for controlling your participation in VPP events.

Set your Backup Reserve

Powerwall will not dispatch to an energy level below your Backup Reserve. Setting your Backup Reserve is the best way to control how much energy you elect for participation and how much you maintain in case of an outage.

Opt-out of a Single Event

When an event is scheduled or active, Powerwall gives you the option to opt-out of the event through the Tesla app. When you opt-out, Powerwall will stop reacting to the event and resume normal operation.

Suspend Participation

You have a VPP participation toggle in the ‘Settings’ menu of the Tesla app. If you turn this off, your Powerwall system will not react to events when they are scheduled, and you will not be notified of the events. You are still enrolled in the program, however, and can resume your participation at any time by toggling your participation back on.

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Compensation

For the additional kWh that your Powerwall delivers, you will receive a payment for the incentive through the Emergency Load Reduction Program (ELRP).

Incentives

The Tesla and SCE ELRP will compensate you $2.00 for every additional kWh that your Powerwall delivers during an event beyond typical behavior. As of 2024, there will be a minimum of seven events each year. Typically, customers can earn up to $20 per Powerwall per event. If the California grid has a significant number of emergencies, however, there could be as many as 60 hours of events. This can result in customers earning between $200 and $600 per Powerwall, depending on the number of emergency events during the summer. Other factors, including your Powerwall’s energy capacity and charge behavior, play a role into your total compensation.

Payment

At the end of the season, which is October 31, Tesla will calculate your total payment, in the form of credits, based on your Powerwall’s overall contribution. You can then request a digital payout of your earned credits in the Tesla app. Once you have requested a payout, you can anticipate the deposit within five to seven days.

2022 Performance

California experienced an unprecedented heat wave starting Labor Day weekend in 2022 that caused record levels of electricity demand and grid stress. Thanks to participating Powerwall owners, the Tesla Virtual Power Plant proved to be a growing and consistent resource for California during this time.

Below is a summary of fleet-level values based on the peak recorded discharge. On average, customers received about $20 per event in 2022, but each customer's compensation was calculated based on their Powerwall's individual contribution.

Participating customers who want to support the grid more can consider lowering their Backup Reserve to only the energy they need for an outage.

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Demand Side Grid Management

The DSGS VPP compensates customers based on the average contribution of a Powerwall site per month, resulting in a more reliable payout. On average, DSGS VPP customers can earn $350 per Powerwall during the summer. Program payments are determined based on monthly average performance multiplied by a monthly capacity payment. Learn more about how the DSGS VPP works.

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Emergency Load Reduction Program: SCE & Tesla Virtual Power Plant Customer Participation Agreement

Thank you for your interest in Southern California Edison Company’s (“SCE”) Emergency Load Reduction Program — Virtual Power Plant Aggregation (the “ELRP A.4 Program”) in conjunction with Tesla, Inc. (“Tesla”). The ELRP A.4 Program is open to SCE residential customers who have one or more Tesla Powerwall(s) (“Device”) that Tesla can remotely control during an ELRP event (“Event”). Participation is subject to your agreement to be bound by these terms and conditions with SCE and Tesla (“Terms”), and both SCE and Tesla are relying on your commitments in these Terms.

By clicking “Accept Enrollment” you (“Participant”) acknowledge that you have read these Terms and agree to be legally bound by them.

1. Eligibility
   SCE in its sole discretion shall determine Participant’s eligibility to participate in the ELRP A.4 Program. Participant agrees that:
   a. Participant receives electric service on an SCE residential rate schedule. 
   b. Participant is located in SCE’s service territory. 
   c. Participant has an SCE electric SmartConnect meter or interval meter.  
   d. Participant is not simultaneously enrolled in another demand response program or any other ELRP sub-group offered by SCE, third-party demand response provider or Community Choice Aggregator (CCA). 
   e. Participant has an active and valid SCE Rule 21 interconnection agreement.
    
2. Authority and Representations
   Participant may not enroll in the ELRP A.4 Program unless Participant has the authority to control the Device and is the customer of record for the SCE service account associated with the address at which the Device is installed. By accepting these Terms, Participant confirms that Participant has authority to control the Device and is the customer of record for SCE and that Tesla and SCE can rely on those confirmations in connection with the ELRP A.4 Program.
    
3. Participant Device Control Requirements
   By accepting these Terms, Participant grants Tesla remote access to control the enrolled Device to automatically charge and/or discharge the Device during an ELRP Event. Other than Participant’s own operation of the Device, Tesla will have exclusive access to the Device. Participant will have the ability to set a minimum level of charge as a backup reserve (“Backup Reserve”). Tesla will not draw Participant Device’s state of charge below Participant’s designated Backup Reserve and will not discharge Participant’s Device when the state of charge is below the Backup Reserve. Except for honoring Participant’s Backup Reserve level, Tesla may charge or discharge the Participant’s Device to any level seven days per week during the hours of 4:00 PM and 9:00 PM during Participant's enrollment in the ELRP A.4 Program.
    
4. ELRP Term
   Participant's enrollment in the ELRP A.4 Program begins upon SCE’s confirmation to Tesla that the Participant is eligible for the ELRP A.4 Program and shall continue until December 31, 2027, unless expressly extended by SCE or terminated sooner.
    
5. ELRP Customer Events
   Events will be triggered the day ahead or day of a Flex Alert of California Independent System Operator (CAISO) Energy Emergency Alerts or at SCE’s discretion between May 1 and October 31 and Event hours can be between 4:00 PM and 9:00 PM.
    
6. Payment
   The California Public Utilities Commission has authorized utilities to compensate ELRP participants in the amount of $2.00 for every kilowatt-hour in reduced use or energy exported to the grid during ELRP events, based on a defined baseline. For purposes of these Terms, SCE will provide such compensation to Tesla based on Participant’s demonstrated performance during ELRP events, and Tesla will in turn pay Participant $2 for every incremental kilowatt-hour based upon the Event baselines and load using the telemetry data of Participant’s Device. Tesla will directly pay the Participant any compensation earned on an annual basis, or on a more frequent basis as determined by Tesla. Those payments, if any, are the only compensation that Participant will receive from Tesla for participation in the ELRP A.4 Program. Participant is responsible for all other costs that may involve participating in the ELRP A.4 Program, including but not limited to, the cost of electricity to charge Participant’s Device and the general use of Participant’s Device. Tesla is responsible for making all payments to Participant related to the ELRP A.4 Program. Participant shall have no recourse to SCE for any payments, and SCE disclaims responsibility for ensuring that Participant’s data is sufficient to determine Participant’s eligibility for the incentive payment, or that the funds it provides to Tesla in respect of Participant’s participation in the ELRP A.4 Program will be paid to Participant.
    
7. Participant Device Data and Other Information
   Participation in the ELRP A.4 Program involves SCE and Tesla having access to certain Participant personal identifiable information and energy use data, including but not limited to, Participant’s name, address, energy usage, utility account number, Device information, data generated during Events during Participant’s enrollment in the ELRP A.4 Program, and other personal information, collectively referred to as Confidential Information. Participant authorizes SCE and Tesla, and their employees and representatives, to use and exchange the Confidential Information to administer the ELRP A.4 Program and in accordance with Tesla’s Customer Privacy Policy and SCE’s Customer Privacy Policy. (Even though those policies are separate documents from these Terms, they are considered part of these Terms.) Participant further authorizes SCE and Tesla to provide any Confidential Information to the California Public Utilities Commission (CPUC) upon its request or as otherwise required by law. Provided the Confidential Information is anonymized and does not contain any Participant personal identifiable information, such anonymized information may be used or disclosed by SCE and Tesla publicly without the need for the Participant’s consent.
    
8. No Warranty; Disclaimer
   SCE and Tesla expressly disclaim all warranties of any kind relating to the ELRP A.4 Program, whether express, implied or statutory including but not limited to any implied warranties for conditions, merchantability, fitness for a particular purpose, title, non-infringement or misappropriation of intellectual property rights.
    
9. Limitation of Liability
   In no event will Tesla or SCE be liable for any direct, indirect, incidental, special or consequential damages, arising in connection with the ELRP A.4 Program, including but not limited to Participant’s Device reduced state of charge during a power outage causing a loss of power or any other loss of power for whatever reason. If Participant is dissatisfied with the ELRP A.4 Program, any of these Terms, or believes Tesla or SCE has breached these Terms in any way, Participant’s sole and exclusive remedy is to disenroll from the ELRP A.4. Program. Participant may disenroll in the ELRP A.4 Program at any time by contacting Tesla Customer Support.
    
10. Termination
    a. Termination By SCE. SCE has the sole discretion to terminate a Participant’s participation in the ELRP A.4 Program, at any time and without cause. Tesla will notify Participant either via the Tesla app, by electronic mail or otherwise in writing. 
    b. Termination by Participant. Participant may terminate their enrollment in the ELRP A.4 Program at any time for any reason by contacting Tesla Customer Support. 
    c. Participant will receive compensation owed under Section 6 of the Terms for participation in the ELRP A.4 Program through the date of termination.
     
11. General
    a. Entire Agreement. These Terms are the entire agreement between SCE, Tesla and Participant concerning the ELRP A.4 Program. 
    b. No Assignment. These Terms may not be assigned by Participant without SCE’s prior written consent. 
    c. Severability and Waiver. If any provision herein is invalid or unenforceable, the remaining provisions will remain in full force and effect. 
    d. Survival. Termination in the ELRP A.4 Program will not affect the obligations and rights under these Terms which are intended to survive such termination. 
    e. Governing Law. This Agreement is governed by California law. 
    f. Amendments. These Terms may be changed by Tesla from time to time upon five days’ notice to Participant, which will be sent to Participant by email or the Tesla app.
     
12. Arbitration Requirement
    Agreement to Arbitrate
    
    Read this part carefully because it means you are agreeing that any unresolved dispute between you and Tesla or you and SCE (or between you and both Tesla and SCE) will not be decided by a judge or jury in a public courtroom, but instead by a single arbitrator in a private arbitration.
    
    If you have a dispute arising out of or relating to any aspect of the relationship between you and Tesla, Inc. or its affiliates (which we call “Tesla”) and/or between you and Southern California Edison Company or its affiliates (“SCE”), send an email to resolutions@tesla.com (for Tesla) or elrp.sce.com (for SCE) describing your dispute and how you would like it resolved. If it is not resolved within 60 days from the date of your email, you agree that your dispute can only be resolved by a single arbitrator in an arbitration administered by the American Arbitration Association (AAA) under its Consumer Arbitration Rules. This includes claims arising before you ordered your System (such as claims related to statements Tesla made about our products). Tesla and/or SCE (as applicable) will pay all AAA fees for any arbitration, which will be held in the city or county of your legal residence. To learn more about the Rules and how to begin an arbitration, you can call any AAA office or go to www.adr.org. The arbitrator can only resolve disputes between you and Tesla and SCE, and cannot consolidate claims from others without consent from you, Tesla, SCE and the others. You can only bring claims in arbitration against Tesla and/or SCE in your individual capacity and not as a plaintiff or class member in any class or representative action (and the same is true for Tesla and SCE). If a court or arbitrator decides that any part of this agreement to arbitrate cannot be enforced as to a specific claim for relief or remedy (such as what lawyers call “injunctive” or “declaratory” relief), then that claim or remedy (and only that claim or remedy) will be carved out of the arbitration and can be filed in court; all other claims must be arbitrated. If you prefer, you can take your individual dispute to a small claims court instead. If you don’t want to agree to arbitration, you can "opt out” of arbitration by sending us a letter within 30 days after placing your initial order for your System. Please send the letter to Tesla, Inc.; P.O. Box 15430; Fremont, CA 94539-7970, and/or Southern California Edison Company Attn: Claims Department, P.O. Box 900, Rosemead, CA 91770, and include your name, your order number, the name of the product you ordered and a statement explaining your desire to opt out of arbitration. If you do not opt out, your agreement to arbitrate overrides any different arbitration agreement between us, including any arbitration agreement in a lease or finance contract.
     

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