Renewable solar energy has the potential to provide homeowners with more than power. Thanks to unique programs and federal tax credits, the tech can also produce steep savings and new household revenue streams.
A shining star in the sector is Tesla's virtual power plant with PG&E in Southern California, which operated in July with impressive results.
"Last night, the Powerwall fleet in California delivered more than 100 [megawatts] to the grid during a Virtual Power Plant event, reducing the need for fossil-fueled peaking plants," the company posted on X, formerly Twitter, on July 11.
Last night, the Powerwall fleet in California delivered more than 100MW to the grid during a Virtual Power Plant event, reducing the need for fossil-fueled peaking plants pic.twitter.com/OUopePBJXi
— Tesla Energy (@teslaenergy) July 11, 2024
VPPs leverage Tesla's home-based battery tech, called Powerwalls. They are often paired with solar panels to provide a formidable way for residents to capture and store sun energy.
Participating Powerwall owners agree to send excess energy from their setups to support the grid when it is drained. In return, the homeowners are paid $2 for each kilowatt-hour they contribute — amazingly providing them cash from power generation. Electrek reported that the savvy residents are likely to earn between $10 and $60 "per event" — when the grid needs support.
The VPP network now covers most of the state. There are more than 600,000 Powerwalls installed worldwide, per the report.
"As a member, you can adjust your backup reserve to set your contribution, while maintaining backup energy for outages," according to Tesla.
July's 100-megawatt performance was an important benchmark. It showed that the program can help to stabilize California's grid using clean energy, reducing the need for "peaker plants," short-run power plants that fire up to meet extreme demand, often during the summer when air conditioners are running. The United States has about 1,000 of these plants that mostly run on natural gas, per Sandia National Laboratories.
By limiting the amount of energy coming from peaker plants, VPP participants are preventing heat-trapping fumes from entering the atmosphere, reducing air pollution-linked health risks.
In an ideal Tesla scenario, a home is pictured on the company website outfitted with solar panels. A waste-high Powerwall is seen attached to the side of the home, ready to power a Tesla electric vehicle.
Thanks to steep government tax breaks that last throughout the decade, that scenario is easier for more people to realize. Tesla lists robust federal rebates — of between 22% and 30% — peaking in 2032. They can be applied to the company's solar panels, Solar Roof (another intriguing product that has had mixed reviews), and Powerwall.
Rewiring America is a free online service that can help you navigate the tax incentives, find installers, and get you on the path to cleaner, cheaper power.
Electrifying your rides and appliances, which can all be juiced by the sun, can generally result in savings throughout the house. With an induction stove, you can even expedite your food prep. By replacing all your old light bulbs with LEDs, you can save hundreds of dollars a year while cutting air pollution by a factor of five.
For its part, VPPs could be the future of renewable power generation, storage, and grid support. Electrek reported that the July event would have earned Powerwall owners who contributed to the project a total of $200,000 in revenue if it would have lasted an hour.
"Tesla is gradually launching those programs in more states and countries, and it is scaling them as it deploys more Powerwalls," per the Electrek story.
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