Tesla has expanded its footprint in Texas’ energy market through a new partnership with Guadalupe Valley Electric Cooperative (GVEC), marking the first partnership between the automaker and a Texas-based utility in the Electric Reliability Council of Texas (ERCOT) Aggregated Distributed Energy Resource (ADER) pilot program.
GVEC, a cooperative serving over 130,000 customers in South-Central Texas, has been a certified installer of Tesla battery systems since 2019. With this latest agreement, Tesla and GVEC will work together to integrate Powerwall units into the ERCOT grid, allowing stored energy to be dispatched during peak demand periods.
Called the Peak-Time Payback (PTP) program, GVEC is offering financial incentives to those who enroll. Participants receive upfront rebates upon registration and annual incentives for continued participation. During peak demand periods, GVEC and Tesla can access up to 70% of a Powerwall’s stored energy to support grid operations, either reducing reliance on the grid or exporting energy once local needs are met.
“This partnership is a significant milestone for both Tesla and GVEC. Consumer-generated energy is rapidly becoming an essential resource for Texas. By joining forces with Tesla, we’re creating a scalable model that enhances grid stability, lowers costs, and increases energy independence,” said GVEC Board President Gary Birdwell.
Tesla has already registered approximately 17 megawatts of generation capacity in the ADER program through its growing network of Powerwall customers. By partnering with GVEC, Tesla is expanding its presence in the Texas energy market, reinforcing its ambition to develop large-scale virtual power plants (VPPs) that provide cost savings for customers while supporting grid stability.
Tesla has been a leading force in battery technology, with its Powerwall systems already playing a key role in virtual power plant programs in California, Australia, and elsewhere around the world.
