Tesla has announced it paid out nearly $10 million to Powerwall owners in 2024 who participated in its Virtual Power Plant (VPP) programs.
The announcement was made from the company’s official Tesla Energy account on X, in response to a VPP participant who received a US$593.21 payment after being part of the program for one year.
We paid out $9.9M to Powerwall owners who supported the grid through Virtual Power Plant participation in 2024 https://t.co/zHULlfRbb8
— Tesla Energy (@teslaenergy) May 19, 2025
How Virtual Power Plants Work
A Virtual Power Plant is a network of decentralized, small-scale energy-producing or energy-storing devices—like Tesla’s Powerwall home batteries—that are coordinated through software to function as a single power plant. Tesla’s VPPs tap into excess solar energy stored in these batteries, automatically discharging it to the grid during times of peak demand or emergencies, such as during heatwaves or power outages.
This model benefits both the grid operators, who receive additional energy to stabilize the system, and Powerwall owners, who are compensated for their participation. Payments are typically based on the amount of energy supplied and the frequency of contributions during grid events.
Virtual Power Plant Expansion
Tesla launched its first VPP in 2019, and has been steadily expanding the program since then. In California, Tesla has partnered with utility companies such as PG&E and Southern California Edison, enrolling thousands of homes into its Emergency Load Reduction Program (ELRP). These programs not only support grid reliability, but also offer a new revenue stream for homeowners with solar and storage systems.
In 2024 alone, Tesla’s VPPs participated in dozens of grid support events, helping to reduce the need for fossil-fuel-based peaker plants and mitigating blackouts during periods of extreme weather. As more regions adopt clean energy mandates and upgrade their grid infrastructure, Tesla’s decentralized energy approach is an affordable and scalable solution.
