Lightning Energy

Tesla VPP

New Energy Tech Approved Seller Badge
Sunpower authorised partner
solarquotes platinum badge
Tesla powerwall certified premium installer mark
CEC approved retailer

Tesla VPP (Virtual Power Plant): Here’s What You Should Know

Late last year Tesla announced its expansion for their Australian Virtual Power Plant (VPP). They’ve expanded from South Australia (where they’ve been very successful) into Victoria through the Tesla Energy Plan. 

To make this expansion even more exciting, the Tesla Energy Plan is an approved VPP Solar Victoria program. This means that homeowners who take part in this program may be eligible for the VPP Battery rebate of $4,174.

From what I’ve seen, the Tesla Energy Plan definitely seems to be the most popular across Australia and getting the most traction. One thing to mention is that this energy plan is the largest across Australia. Probably because it’s one of the most popular solar batteries and everyone has invested in a Powerwall (I’ve got my Tesla Powerwall review here). 

Either way, this is some fantastic news for homeowners who already own a Tesla Powerwall and are keen to start reducing their energy bills and help create a more stable grid for their community. For homeowners who are considering getting a Powerwall, the Tesla Energy Plan comes with a wide range of benefits. 

I’ve always been a fan of VPPs because it seems like the next step towards a more renewable future. It also brings the community together in a way where we are all sharing our energy to benefit each other. 

There are certainly a few things you need to consider  before  joining a  VPP, most importantly you need to understand what’s the best option for your home. Now, there are a few available so choosing the right one for you is important. 

Before anything, please remember the first step is to invest in a solar battery. To join the Tesla Energy Plan you will require a Powerwall so please don’t hesitate to get in touch with one of my Tesla design engineers here

Anyway, let’s find out everything you need to know about the Tesla Energy Plan. 

Table Of Contents

Tesla energy plan

What Is The Tesla Energy Plan?

So, the Tesla Energy Plan allows homeowners with a solar system and Powerwall to come together to share energy across the community. That’s right, you can now be a part of a greener community. 

The Tesla Virtual Power Plant monitors and manages the operation of your Powerwall, ensuring sufficient energy is available for your home, and then supporting the grid when it is needed most.

At the time when the grid needs support the most, each home can begin to share the required amount of energy which will stabilise the grid, and together these homes can help prevent an outage. 

The impact of thousands of homes working together can be significant, and in return, you receive guaranteed Grid Support Credits of $220 per year, per Powerwall along with a Feed in Tariff (check out the Feed In Tariffs here). .

To summarise, when you join the Tesla Energy Plan you become a part of a community, sharing your clean renewable energy with others and helping to transition the grid away from fossil fuel energy. 

Who Can Join The Tesla Energy Plan In Victoria?

Now, there are some requirements you must meet before being able to join the Tesla Energy Plan. First of all, you are going to need a solar system and Powerwall. I know it sounds simple, but this is the first step. 

Other requirements include: 

  • You must own a solar system below 15kW per Powerwall
  • This is for residential customers only 
  • Reside within Victoria
  • Install or have a smart meter installed 
  • Have an internet connection (Wi-Fi or Ethernet)

The Tesla Energy Plan is really easy to join. Especially for those who already have an existing Powerwall or anyone who is interested in investing in one.  

If you are interested in a Powerwall, our design engineers can help you get started

Receive a $4,174 rebate from Solar Victoria by joining the Tesla Energy Plan

One awesome benefit of the Tesla Energy Plan is that Solar Victoria will actually increase your solar battery rebate from $3,500 up to $4,174. This can give you an extra hand reducing the upfront cost of a Powerwall. Personally, I thought this was an awesome touch by Solar Victoria.

However, you will still need to be eligible to claim the solar battery rebate. This means homeowners with a combined income under the $180,000 per year wage bracket can apply. 

Not only are you getting extra energy savings with the Tesla Energy Plan, but you’re also getting a bigger solar rebate on your battery. Seems like a win win in this situation. 

You Can Exit The Tesla Energy Plan At Any Moment, Without Any Exit Fees

Most of you will want to know this question. Of course, we’re all interested in the extra benefits that come with this program but what happens if you change your mind in the future? 

Well, fortunately the Tesla Energy Plan is a no lock in contract. This means you are free to exit the program whenever. 

It’s important to note that while connected to a VPP, the provider (in this case Tesla) monitors and manages your Powerwall to ensure that they can support your home’s needs first, but also your community.  

However I still think it’s important to have some form of freedom in the choice that you can leave at any moment. I really think this is a big selling point and will help homeowners overcome any objections to joining the Tesla Energy Plan

Tesla Will Extend Your Battery Warranty Up To 15 Years If Your Join The Tesla Energy Plan and Stay Connected

That’s right. Tesla has come out with the big guns. Incredibly, Tesla will extend the warranty on your solar battery from 10 years up to 15 years for those who are a part of the Tesla Energy Plan. 

One thing to note, you can only get this extended warranty if you remain connected. Anyone who leaves the Tesla Energy Plan will return to the standard extended warranty terms. 

This is a rather large increase and not widely seen in the solar battery industry. Compared to Sonnen and other batteries, a 15 year warranty towers above as an industry leader.

It’s impressive and can really make the difference for those homeowners who are looking for lifetime returns. 

Again, it’s another great incentive to join the Tesla Energy Plan. These are just incentives as well, we haven’t yet talked about the benefits. 

*If you are an existing owner, you now have until 30th September 2022 to access the extended warranty.

You Can Now Claim Up To $1,000 In Grid Credits…

All you have to do to be eligible to claim $1000 in grid credits is join the Energy Plan within 30 days of your battery installation. These credits can be used against your electricity bills and will not be available as a cash rebate. 

If you are eligible for this amazing offer, you will get $500 on month 3 and month 13 after your join date. One thing to also note is that buying another powerwall will not create eligibility for extra credits.

Request A Tesla Powerwall 2 Proposal.

Our Tesla powerwall experts can carry out an energy assessment to help you understand the benefits of investing in a solar battery. Speak to us and request more information on the Tesla Energy Plan.

What Exactly Can The Tesla Energy Plan Give You; Benefits-Wise?

Ok, so probably the most important area that we need to dive into. What can the Tesla Energy Plan give you as a homeowner? 

There are a large range of benefits in joining this program  from increased savings, all the way through to support and service from our team, Tesla and Energy Locals. 

Let’s go through some of the most important areas I feel matter the most to you.

Certainty of a set backup reserve

You’ll have peace of mind knowing you will always have a minimum of 20% backup reserved should a grid outage occur. That’s enough to power the average Aussie home for five hours (and the average outage usually only lasts around two). 

Take advantage of the monthly Grid Support Credits

As a member of the Tesla Energy Plan you will be eligible for $220 in Grid Support Credits each year (per Powerwall) which are automatically applied to your monthly bill along with a Feed in Tariff for any electricity exported to the grid. The bottom line is you will be rewarded for being a part of the VPP.

It’s definitely great to get rewards and extra savings from your solar battery and system. And with feed-in-tariffs only going down in value across the industry, these credits are going to be contributing a lot more to your home’s energy savings.  

Smart energy consumption

Now this is a feature I thought was really incredible. Your Powerwall will learn when and how much energy you use, making sure it stores free solar or imports cheap energy from the grid. 

This ensures you’re using the most cost effective energy to power your home. Most importantly, helping you avoid peak prices and maximising your home’s energy savings. 

For me, this is really impressive and would mean bigger savings and returns. 

Get more consistent energy bills all year round

Some battery owners may find that they generate a lot of energy in the summer months which gives them a very low energy bill, but come the winter months they produce less and end up having to pay a little more. 

The Tesla Energy Plan can give you more peace of mind knowing your energy bills are going to be more consistent across the board. 


So that’s the Tesla Energy Plan we’ve covered. To be honest, I think it’s a fantastic solution for homeowners who are looking to make the most out of their Powerwall.

Increasing your homes savings potential and supporting your community in the process with reduced outages and lower energy prices; to really move towards a self sustainable future. It’s also the next step for those who are wondering how they can further utilise their Powerwall. 

If you are interested in the VPP, please don’t hesitate to contact one of our experts here.

Share With Your Friends!


Written By:

Luke Cove
Managing Director
Lightning Solar & Electrical

4 thoughts on “Tesla VPP”

  1. You need to let people know how much is the cost of your Powerwall after the government rebates including installation, testing and commissioning.

  2. I have had 1x power wall on VPP for about 10 months with a 13.5 kW solar array and do have a concern on the “logic” used by Tesla to determine if the battery is used, or if grid power is used. During Peak time 3.00PM -9.00PM , it does a great job of minimizing grid power use. However, often during the morning it will use grid power when the battery is full. This contradicts the claim that it is always “most cost effective energy” , when it uses $0.20 electricity instead of the battery. Do you know if any adjustments to the algorithm it uses are possible?

  3. It would be nice to see some sort of bill comparison per state. Tesla puts a SA bill comparison on their site, but in VIC it does not really make sense to me.
    From what I can tell I’m locked into the Tesla Energy Provider, who has higher basic rates than my current provider (althought their feed0in tarrif is better). Then I have the cost of a PowerWall with $1000 discounted if I purchase new (and also suspect as has been the case for a long time that the installer just gobbles this cost difference up). I read you get $220 per year in VPP credits, and then also indicates you get feed-in but not clear if that is from the battery or only from the excess solar. $220 over 10yrs is $2200, so just helping to justify the PowerWall.
    What isn’t explained anywhere is just how does the system actually work? For example at the moment I generate solar and excess goes onto the grid and deficit is pulled from the grid, I either pay or get paid depending on the direction of energy flow. So now with the VPP it seems like the battery could be charged from my solar, but also the whole point is that it could get charged from the grid to soak up the excess renewables, so am I getting charged for that grid use or is that calculated separately somehow? And then if the battery was charged in this grid excess manner but then I use a lot of my power does that mean I get it sort of free?
    Then if the battery is discharged to the grid is that getting me a feed-in tarrif or is that unmetered and monitored by the VPP?
    It feels like it should be cost beneficial to the owner, I know it is cost beneficial to the VPP operator, but without any solid understanding of how it works it could be that the owner is just paying the same sort of power bills as they were without the VPP (especially given the increased rates as stipulated by the specific power trader that needs to be used).
    I hope that all makes sense, and maybe someone can provide a solid few examples to show how the system and costs really work.

  4. My experience is that you get charged the fit when your battery feeds into the grid and your tod usage tariff when your battery charges from the grid. This means that teslas grid stableisation costs you money which is only partially offset by the 220 annual credit.

Leave a Comment

Your email address will not be published. Required fields are marked *

Welcome To Your New Solar Powered Lifestyle.

Related Topic Posts