Energy Support

Tesla Virtual Power Plant Powered by SMUD My Energy Optimizer® Partner+

Join the Tesla Virtual Power Plant (VPP) and support Sacramento Municipal Utility District’s grid while earning money and maintaining your energy security. Learn about the benefits, eligibility, requirements, compensation and more.

Overview of the Program

The Tesla Virtual Power Plant (VPP) connects communities of homes with Powerwall to enhance Sacramento’s grid reliability and resiliency. By joining the Tesla VPP program, your Powerwall will reduce energy usage during the hours when demand is highest and clean energy resources are scarce. This could include shifting the time when your battery is used to power your home. The interactions would be seamless to you and no extra effort is needed on your part. Earn a one-time incentive of up to $5,000 for each battery (two maximum), in addition to ongoing performance payments of $440 per Powerwall each year.

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Benefits

  • Earn Compensation: Upfront enrollment incentives and on-going incentives are based on the number of Powerwall you have and when they were installed at your home.
  • Maintain Your Energy Security: After enrolling, your VPP Event Backup Reserve is set to 20%, ensuring you always have backup power when you need it.
  • Stabilize Sacramento’s Grid: The extra capacity your Powerwall provides can help avoid or reduce blackouts in a severe emergency.
  • Community Strength: Team up with other Powerwall owners in Sacramento Municipal Utility District (SMUD) to build a more reliable grid.

 

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Eligibility

Powerwall owners are eligible to participate if you:

  • Have a customer’s service account registered in SMUD territory
  • Have a battery storage unit installed at your home
  • Are enrolled in SMUD’s Solar and Storage Rate
  • Are not enroll in a Medical Equipment Discount (MED) Rate

 

Sign up through the Tesla app and your eligibility will be reviewed. If eligible, you will automatically be enrolled.

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Enrollment

To enroll:

  1. Open the Tesla app and select the Virtual Power Plant section on the Powerwall home screen.
  1. Ensure that you have your SMUD utility bill with you to retrieve your account number.
  1. Enter your information so that SMUD can verify you as a current customer including name, account number as stated on your SMUD utility bill, email and phone number. Review the program information and select 'Agree and Apply.'

Your application will now undergo review by SMUD. You will be notified once your application has been approved from the Tesla app.

Note: If you are not already enrolled in the SMUD Solar and Storage Rate you will be automatically enrolled in it upon acceptance into this program. Please visit SMUD’s website to learn more about the Solar and Storage Rate.

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Participation

Once you are enrolled in the program, Tesla will call upon the virtual power plant for scheduled grid support events. When these events occur, your Powerwall will dispatch excess stored energy back to the grid. Estimated 20 events per month up to 240 events per year. Events are typically called at least 24 hours in advance.

What to Expect

  • Pre-Event: You may receive a push notification from the Tesla app about the event times. Your Powerwall will prioritize charging and preparing for the event.
  • During the Event: Your Powerwall will discharge to support the grid until the event ends, it reaches your VPP Backup Reserve level or you opt out.
  • Post-Event: Powerwall resumes normal operation.

 

Controlling Your Participation

Powerwall gives you two options to Opt Out of a Single Event: Use the Tesla app to opt out of any scheduled or active event.

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Compensation

  • Upfront Incentives: If your batteries interconnection was submitted on or after April 1, 2024, you are eligible for an upfront incentive of $5,000 for each battery enrolled and a up to a maximum total incentive of $10,000. If your batteries interconnection was submitted before April 1, 2024, you are eligible for an upfront incentive of $2,500, regardless of number of batteries you have.
  • Ongoing Incentives: Customers will receive ongoing performance payments in addition to the enrollment incentive. Ongoing performance incentives will be $110 per quarter per Powerwall enrolled for up to three Powerwall. That equals $440 per Powerwall enrolled annually, in addition to the upfront incentive of $5,000 per Powerwall.

 

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Payment

Payments will come directly from SMUD. Upfront incentive payments will be made by check from SMUD to you within 30 days of your successful enrollment in the program. Ongoing incentives will be paid by check from SMUD to you within 30 days of the end of each quarter.

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SMUD My Energy Optimizer® Partner+ Program Participation Agreement