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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Frequently Asked Questions Show All Hide All

SMUD My Energy Optimizer® Partner + Program Participation Agreement

SMUD (“the Utility”) created a virtual power plant (“VPP”) program called My Energy Optimizer® Partner + (the “Program”) to help reduce stress on the electrical grid, supported by Tesla, Inc. (“Tesla”). This Program compensates eligible customers for upfront capacity commitments. 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 Your Utility. Your Utility in its sole discretion shall accept or reject Your participation in the Program. Eligibility criteria includes, at a minimum, that you:

    a. Are at least 18 years of age 

    b. End-user must have a residential electric account in good standing with SMUD

    c. End-User must have a complete interconnection application for Behind the Meter Energy Storage (“BESS”) with SMUD and remain compliant with interconnection requirements

    d. Have authority to control the Device as set out in Section 2

  2. 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 SMUD can rely on those confirmations in connection with the Program.

  3. 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.

  4. Term
    This Agreement will commence upon the date that You accept these terms and conditions and will continue for one (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.

  5. 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 by clicking the link at the bottom of this page with link title: “Program Terms”. 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.

  6. Compensation
    The Program provides compensation for each Powerwall enrolled and participating in the Program. You acknowledge and agree that Tesla does not guarantee any specific level of compensation from Your participation. The calculation of performance and compensation is defined by SMUD in the Program Rules published on their website. You agree that SMUD will provide payment to You (“Compensation”) for Your Device’s participation in the VPP. The Compensation payments referenced herein, if any, are the only compensation that You will receive from Tesla or SMUD 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.

  7. Your Device Data and Other Information
    Participation in the Program means that the SMUD 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 SMUD 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 SMUD 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 SMUD 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.

  8. Program Communications
    By accepting these terms and conditions, you consent to Tesla, your Utility and other Program agents communicating with you for the purpose of enrolling you and managing your participation in the Program by email, SMS or telephone, including without limitation placing calls to wireless and other phone numbers using automatic dialing systems and recorded voice technology, notwithstanding any registration pursuant to federal, state or local Do-Not-Call lists or similar registries.”

  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, similar 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 [5] days' 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 vppsupport@tesla.com and termination will be effective within [5] days of processing Your request.

  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 7, 8, 10, 12 and 13, which are intended to survive such termination.

    v. Governing Law. This Agreement is governed by California law.

    vi. 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.


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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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