Tesla to reward Powerwall customers in California who opt-in to virtual power plant program

By Lennon Cihak
Tesla to launch new virtual power plant program
Tesla to launch new virtual power plant program

Tesla’s new partnership with gas and electric company PG&E in California will give Powerwall owners the opportunity to earn money while giving energy back to the grid.

The virtual power plant (VPP) is a connection of distributed energy storage systems that work in tandem to give energy back to the grid to avoid dirty and costly peaker power plants. Essentially, when the grid is being strained, then the VPP can kick in and draw power from Powerwall owners enrolled in the program, and other distributed energy storage system owners, to use clean energy and avoid brownouts across the state.

Here are some of the advantages with this new VPP with PG&E:

Stabilize California’s Grid: The extra capacity your Powerwall provides could help avoid or reduce blackouts in a severe emergency. This way, Powerwall can keep the lights on for both you and your community.

Clean the Grid: Tesla will dispatch your Powerwall when the grid is in critical need of additional power. That is when the least efficient generators would typically come online.

Unite as a Tesla Community: Team up with other Powerwall owners who are accelerating the world’s transition to sustainable energy and help form the largest distributed battery in the world - potentially over 50,000 Powerwalls. As part of the VPP, your Powerwall will have an outsized positive impact on the grid over traditional demand response programs.

Maintain Your Energy Security: Powerwall will discharge during VPP events but won’t discharge below your Backup Reserve. Adjust your Backup Reserve to control your contribution while maintaining backup energy for outages.

Earn Compensation: Through the ELRP pilot, you will receive $2 for every additional kWh your Powerwall provides during an event. You don’t have to change your energy usage behavior to participate.

In 2021, Tesla piloted a test VPP program in California for Powerwall owners to voluntarily opt-in without compensation. The test VPP program would then pull energy from the Powerwalls when the grids needed it.

“Become a part of the largest distributed battery in the world and help keep California’s energy clean and reliable,” reads a statement from Tesla. “Opt-in to the Tesla Virtual Power Plant (VPP) with PG&E and your Powerwall will be dispatched when the grid needs emergency support. Through the Emergency Load Reduction Program (ELRP) pilot, you will receive $2 for every additional kWh your Powerwall delivers during an event. Adjust your Backup Reserve to set your contribution, while maintaining backup energy for outages.”

With Tesla and PG&E’s new VPP program owners will receive $2/kWh, which is quite significant. For comparison, where I live in Southern California, Tesla charges $0.58/kWh for supercharging during peak hours.

According to Electrek, “they could earn anywhere from $10 to $60 per event or more for bigger systems.” 

Tesla stated that they have roughly 50,000 Powerwalls that may be eligible for this new program.

Tesla Begins Testing FSD in China

By Karan Singh
Not a Tesla App

Tesla was recently granted permission to test FSD on Chinese streets – specifically in Shanghai. Just recently, Elon Musk visited China and discussed the potential for FSD to come to China.

Gearing Up for FSD China

This is just the first step for Tesla to begin its customer deployments of FSD – Tesla conducts similar ADAS testing in North America, where special testing vehicles and testing employees run the latest FSD (Supervised) versions against a gamut of real-world, real-life tests.

Tesla has recently been working on translating FSD release notes into multiple languages, alongside building a data center in Shanghai and establishing an FSD Operations and Labelling team at the same center. These are the first, key steps to bringing FSD to a new market that has unique and different traffic rules when compared North America.

China doesn’t have the regulatory hurdles or challenges that Tesla faces in Europe to bring FSD and has been working with Chinese corporations as well as the government, which has now provided its official approval for FSD testing in-country.

We might even see FSD deployed to early testing customers in China by the end of 2025.

ADAS Competitors

There are quite a few competitors in the Chinese market already- with challengers like Xpeng and Xiaomi working on building their own homegrown systems, mostly driven by a mixture of cameras, radars, ultrasonic sensors, and LIDAR. However, many of these systems face similar challenges to other non-Chinese competitors and don’t have the mileage under their belts to tackle Tesla’s dominating lead in data and data processing.

European Union

Tesla is poising itself for an FSD rollout internationally, with increased testing also taking place in the UK, France, and Spain – some of the key locations with unique infrastructure in the European Union. However, some EU-specific regulations restrict how FSD can perform – each and every action must be manually approved by the driver. Until that regulation is changed to adapt to systems like FSD, it won’t be making its way there just yet.

Tesla Cybertruck to Receive Charging Improvements in Upcoming Update

By Karan Singh
Not a Tesla App

Former Tesla VP of Powertrain and Energy Drew Baglino previously mentioned that Cybertruck would be receiving charging improvements soon.

Wes Morrill, Tesla’s Cybertruck lead engineer, recently reposted Baglino’s comments on the charge speed update on June 16th and mentioned that it would be coming soon via OTA.

Charging Improvements

The 4680 cell has seen some difficulties in its charge curve, similar to Tesla’s other vehicles that have been deployed with the 4680. Tesla has alluded to difficulties in the manufacturing curve previously, and also with engineering improvements to the new cell standard, and eventually stopped manufacturing the Model Y with the 4680 cells.

However, this is the first time that Tesla has begun to deploy major improvements to the 4680 cell. It appears the improvements will allow up to 154 miles to be recovered in 15 minutes, which is approximately a 30% improvement to current charge rates.

We’re hoping that these improvements to the 4680 will also translate to older Model Y vehicles that have 4680 cells, which will be key to the owners of these vehicles. 4680 production is currently mainly focused on Powerwall, Megapack, and Cybertruck – with Semi not using 4680 yet.

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