Sunrun, Tesla partner on distributed power plant in Texas
Severe weather events and soaring electricity demands in Texas highlight the importance of solar + battery systems. Heeding the call, Sunrun is now operating its first “aggregated power plant program” in Texas in partnership with Tesla Electric, a retail electricity provider operated by Tesla Energy Ventures LLC, a subsidiary of Tesla Inc. The partnership has already enrolled more than 150 Sunrun customers in an aggregated power program and will scale up enrollments while dispatching stored solar energy from at-home batteries.
Such a program is needed in Texas to rapidly increase available electricity reserves on the grid during periods of high consumption. This news comes just weeks after Hurricane Beryl caused widespread power outages impacting nearly 3 million homes and businesses. It also comes three years after the state’s devastating and deadly power grid meltdown during the winter storm in February 2021.
Since both catastrophic events, the Electric Reliability Council of Texas (ERCOT), the state’s grid operator, has begun adopting ways to diversify and strengthen the power grid, including through the Aggregated Distributed Energy Resources Task Force.
“Texas grid has already experienced a traumatic spring and summer due to weather vulnerabilities and we know the state also needs more power to meet soaring demand on a daily basis. We’re eager to bring Sunrun’s on-demand battery response expertise to help make the grid more resilient against outages,” said Sunrun CEO Mary Powell.
How it works
Tesla Electric is one of Sunrun’s preferred Retail Electricity Providers in Texas because of its attractive rate structures and ability to participate in this power plant program. Sunrun customers with solar panels combined with a Tesla Powerwall battery are eligible to participate once they choose Tesla Electric as their electricity provider.
Sunrun customers who enroll will be participating in ERCOT’s Aggregated Distributed Energy Resources pilot program aimed at strengthening grid reliability by networking together customer-sited storage devices to serve as a resource for the wholesale electricity market. Additionally, customer Powerwall batteries will also help to lower the costs of energy at the wholesale level. The resulting energy cost savings will be shared with customers.
Customers will be compensated for their participation in the form of yearly payments, currently calculated at $400 per Powerwall for 2024 participation. In addition, customers will retain a portion of the stored energy in their batteries to provide back-up power to their homes in the event of a power outage. Sunrun will also earn incremental recurring revenue for the program.
Sunrun currently operates more than a dozen power plants across the country, including the largest single-owner virtual power plant program.
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