Tesla Virtual Power Plant With DSGS

Join the Tesla Virtual Power Plant (VPP)—support California’s energy grid, earn money and maintain energy security. Explore the benefits, eligibility, compensation, and more about the VPP powered by the California Energy Commission’s (CEC) Demand Side Grid Support (DSGS) program.

• Overview
• Benefits
• Eligibility
• Enrollment
• Participation
• Compensation
• Frequently Asked Questions

Overview of the Program

Enroll your Powerwall in the Tesla Virtual Power Plant with the CEC’s DSGS framework to support California's energy grid during critical times and earn up to $350 a year per Powerwall. Opt in and your Powerwall will be dispatched to supply energy on summer evenings. You'll receive monthly performance-based payments, paid annually, while being able to set your Event Backup Reserve to ensure you always have backup energy during outages.

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Benefits

• Optimize Your Powerwall’s Value: Earn up to $350 annually per Powerwall while participating in the VPP.
• Stabilize the Grid: Help keep California's energy clean and reliable.
• Community Strength: Join a vast network of Tesla users, forming the world’s largest distributed battery system.
• Energy Security: Participate in a way that fits your energy needs and preferences.

Eligibility

Tesla Powerwall owners with or without solar can participate if they:

• Receive electric services from PG&E, SCE or SDG&E or are Community Choice Aggregation (CCA) customers within these areas
• Have a residential service account
• Are not enrolled in a conflicting demand response program

Note: To be eligible for the maximum potential earnings you must provide your utility account number during enrollment.

Enrollment

Eligible users can sign up directly in the Tesla app. Enrollment is processed during the last week of each month, with participation beginning the following month. The Program Administrator will verify your eligibility. If you’re found to be ineligible, you will be removed from the program, but will still have an opportunity to resolve any issues and re-enroll.

Note: To be eligible for the maximum potential earnings you must provide your utility account number during enrollment.

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Participation

Once you are enrolled in the program, Tesla will call upon the virtual power plant when wholesale electricity prices exceed $200/MWh. When these events occur, your Powerwall will dispatch energy back to the grid. You can expect events to occur between May and October, from 4 PM to 9 PM. Events will be no longer than two hours. There will be at least one event per month with no more than 35 events each summer.

Note: During events, your Powerwall is automatically dispatched and requires no additional action.

• Pre-Event: When an event is scheduled, you will receive a notification in the Tesla app and your Powerwall will prioritize charging in preparation.
• During the Event: Powerwall automatically discharges to support the grid, maintaining levels above your Event Backup Reserve.
• Post-Event: Once the event is over, Powerwall returns to normal operations.

Controlling Your Participation

You can control your level of participation in the program using the following options in the Tesla app:

• Setting Event Backup Reserve: Your Event Backup Reserve determines how much energy your Powerwall will keep to power your home.
• Opting-out of a Single Event: You can opt-out of a scheduled or ongoing event, which will cause your Powerwall to stop reacting to the event and resume normal operation.
• Suspending Participation: When you suspend your participation, your Powerwall will not react to current or future events until you resume participation.

Note: Because this VPP is performance-based, a lowered level of participation may result in reduced compensation. 

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DSGS Program Participation Agreement

The State of California, in Assembly Bill 205 (Ting, Chapter 61, Statutes of 2022), created a virtual power plant “(VPP”) program called the Demand Side Grid Support Program (“DSGS” or “Program”), administered by the California Energy Commission (“CEC”). This Program compensates eligible customers for upfront capacity commitments and per-unit reductions in net energy load during extreme events. Tesla, Inc. (“Tesla”) supports this Program, which is open to customers with one or more eligible Tesla Powerwall(s) (each, a “Device”) that Tesla will control during demand response events (each, an “Event”). Your participation is subject to your agreement to be bound by these terms and conditions with Tesla (“Terms”).

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

1. Eligibility and Enrollment
   Upon completing the necessary information and agreeing to the Terms, Tesla will submit Your application to the CEC. The CEC in its sole discretion shall accept or reject Your participation in the Program. Rejection will result in Your removal from further participation in the program. Eligibility criteria includes, at a minimum, that you: 
   a. Are at least 18 years of age
   b. Have permission to operate from your host utility 
   c. Are not participating in a CAISO Proxy Demand Resource (PDR) or Reliability Demand Response Resource (RDRR)
   d. Have authority to control the Device as set out in Section 2 
    
2. Acknowledgement
   You acknowledge and agree that:
   1. You meet the eligibility requirements of the DSGS Guidelines and are not enrolled or participating in a conflicting program to the best of Your knowledge.
   2. You will allow the CEC access to all documentation to verify compliance with the program and program performance.
   3. You have not received and will not apply for SGIP incentives (note: this is only applicable if Your permission to operate date is after July 1, 2023).
   4. Your information submitted to the Program is accurate and complete.
    
3. Authority
   You should not participate in the Program unless You have the authority to control the Device(s) and are the customer of record for the utility account associated with the address at which the Device is installed (“Customer of Record”). By accepting these Terms, You confirm that You have the authority to control the Device and are the Customer of Record, and that Tesla and the CEC can rely on those confirmations in connection with the Program.
    
4. Grant of Control Over Your Device
   By accepting these Terms, You grant Tesla remote access to control the enrolled Device to automatically charge and/or discharge the Device, during an Event. Tesla may charge or discharge Your Device at any time and to any level but will make efforts to respect Your preferences as configured in the Tesla App, like VPP Backup Reserve During Events and Event opt-out, as applicable.
    
5. Term
   This Agreement will commence upon the date that You accept these terms and conditions and will continue for 1 year (the “Term”). Thereafter, the Term shall automatically be extended for additional renewal terms of one (1) year each, each anniversary thereof, until either You or Tesla terminates this Agreement as allowed under these Terms.
    
6. Program Events
   Events will be called subject to the “Program Rules,” which you will be required to review and accept in accordance with this Agreement and a copy of which may be found here: < "Program Rules">. Tesla will control the Device to respond during Events and will make reasonable efforts to maximize performance within Your preferences as configured in the Tesla App.
    
7. Compensation
   The Program provides compensation based on the average power that discharges from Your Device in response to Events (“Performance”). You acknowledge and agree that Tesla does not guaranty any specific level of Performance from Your participation. The calculation of the Performance is defined by the CEC in the Program Rules under Incentive Option 3. You agree that Tesla will provide payment to You (“Compensation”) for Your Device’s contribution to the VPP’s Performance at the following rates each month in 2024 and 2025. You acknowledge that these rates can change in future years and Tesla reserves the right to update these terms and conditions, accordingly.
   
   May - $7.00
   June - $7.25
   July - $13.10
   Aug - $14.04
   Sep - $14.97
   Oct - $8.19
   
   Tesla’s payment of Compensation is dependent on Tesla receiving payment from the Program. Compensation may be delayed or blocked until Tesla receives payment from the CEC. The Compensation payments referenced herein, if any, are the only compensation that You will receive from Tesla and the CEC for participating in the Program. You are responsible for all other costs of participating in the Program, including, but not limited to Your cost of electricity to charge Your Device as well as for the general use of Your Device.
    
8. Participant Device Data and Other Information
   Participation in the Program means that the CEC and Tesla will have access to certain types of Your personal identifiable information and energy use data, including, but not limited to, Your name, address, energy usage, utility account number, Device information, data generated from the Program and other personal information, collectively referred to as Confidential Information. You authorize the CEC and Tesla, and their respective employees and representatives, to use and exchange the Confidential Information to administer the Program and in accordance with Tesla’s Customer Privacy Policy, as applicable. (Even though this policy is a separate document from these Terms, it is considered part of these Terms). You further authorize Tesla and the CEC to provide Your Confidential Information to relevant regulatory bodies upon their valid, legal request or as otherwise required by law. You also authorize Tesla or the CEC to use or share Confidential Information that is anonymized without further need for Your consent provided that it does not contain any of Your personal identifiable information.
    
9. Enrollment Into Other VPP Programs
   You agree that Your enrollment into the Program means that You are interested in participating in virtual power plant programs. You grant Tesla the right to apply on Your behalf, unenroll You from programs and enroll you in alternative or follow-on VPP programs that are, in Tesla’s sole discretion, comparable in value and customer experience to the Program. If this occurs, Tesla will notify You of the change, and provide You with an option to unenroll.
10. No Warranty; Disclaimer
    Tesla expressly disclaims all warranties of any kind relating to this 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.
     
11. Limitation of Liability
    In no event will Tesla be liable for any direct, indirect, incidental, special or consequential damages arising in connection with the Program, including but not limited to, Your Device’s reduced charge during a power outage causing a loss of power or any other loss of power. If You are dissatisfied with the Program, any of these Terms, or believe Tesla has breached these Terms, Your sole and exclusive remedy is to discontinue participation in the Program.
     
12. Termination
    You agree that either of us may choose to terminate Your participation in the Program, at any time and for any reason. If Tesla elects to terminate Your participation in the Program, Tesla will provide You with advance written notice to the email address You maintain with Tesla in Your Tesla app. If You elect to terminate Your enrollment in the Program, you may do so by contacting Tesla Customer Support. In either case, termination will be effective within a reasonable period of time allowing for Tesla to process termination.
     
13. General
    i. Entire Agreement. Except as otherwise stated herein, these terms and the Program Rules constitute the entire Agreement between You and Tesla concerning the Program.
    ii. No Assignment. You may not assign this Agreement without Tesla’s prior written consent.
    iii. Severability and Waiver. If any provision herein is invalid or unenforceable, the remaining provisions will remain in full force and effect.
    iv. Survival. Termination of the Program will not affect any obligations and rights under this Agreement, including Sections 8, 10, 11, 13 and 14, which are intended to survive such termination. 
    v. CEC Jurisdiction. These terms shall be subject to all legal and regulatory requirements applicable to the DSGS Program (including, without limitation, any decisions, orders or rules of the CEC). 
    vi. Governing Law. This Agreement is governed by California law. 
    vii. Amendments. This Agreement may be amended by Tesla from time to time upon 5 days’ written notice to the email address You maintain with Tesla in the Tesla app with reference on the pilot support page which can be accessed through the Tesla app.
14. Tesla Arbitration Requirement
    Agreement to Arbitrate
    Read this part carefully because it means you are agreeing that any unresolved dispute between you and Tesla 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 this Agreement and the relationship between you and Tesla, Inc. or its affiliates (which we call “Tesla”), send us an email to resolutions@tesla.com, 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). We 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 cannot consolidate claims from others without consent from you, Tesla, and the others. You can only bring claims in arbitration against Tesla 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). 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. Send the letter to Tesla, Inc.; P.O. Box 15430; Fremont, CA 94539-7970 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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