How can that price difference make any sense from the utility's perspective? Home users don't directly pay the price that the utility pays for electricity at the moment it's needed. For each kilowatt-hour a person's battery takes off the system demands during these events, participants will be paid $2. Charging the battery from PG&E's grid will generally cost under $0.50 per kilowatt-hour. What do participants get beyond the satisfaction of helping keep the state's electric grid stable? A very good price for their electrons. Participants can opt out of a given event, suspend participation, or drop out at any time. Demand spikes, which often accompany California heat waves, could see the 20 minimum hours exceeded and provide far less warning. If the grid doesn't face any power demand crises, then these will be scheduled with advanced warning. The program guarantees a minimum of 20 hours of events. The plan is open to any PG&E customers who aren't already participating in a similar program. It wouldn't be due only to participation in this program. Of course, if the grid fails, that reserve could end up being tapped into regardless. Once taking part, users can set a minimum battery reserve: The software won't allow the battery to fall below that value, even if grid stabilization would benefit from additional power. ![]() At the moment, we'll look at what participants will end up doing.īased on Tesla's description, Powerwall owners can sign up for the program using the battery management software. Tesla's announcement of the program says that it will be part of Pacific Gas and Electric Company's (PG&E, a California utility) Emergency Load Reduction Program, which we'll focus on in the next section. It's a clever way for homeowners to take advantage of a program that's otherwise limited to commercial users. ![]() Instead, the batteries will be taking part in a utility's program that's designed to reduce demand, which the utility company will presumably do by using the battery to supply some of the demand inside the battery owner's house. While this may conjure images of Powerwall batteries across the state sending electricity to the grid during a crisis, that doesn't appear to be what's happening here. Sign up with the company, and you'd become part of what the company calls a "virtual power plant." You would be able to use your battery to keep the grid stable during periods of high demand and be well-compensated for the electrons. Last week, Tesla announced a program for California-based owners of its home battery products.
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