Tesla Energy Storage Turns To Aggregation

MAY 13 2017 BY MARK KANE 21

Tesla Powerwall

Tesla is now expanding its energy storage business from simply supplying the battery systems, to also remote control of installed storage systems to make the grid cleaner and more efficient.

Tesla Powerwall 2.0

Tesla calls it aggregation – the next step in energy storage.

The idea is to enable Powerwall owners to give utilities access to the battery – for use when energy demand is at its highest.  Naturally, in turn owners would gain compensation for the extra capacity.

The first Tesla partner with the project is Green Mountain Power in Vermont.

Tesla and Green Mountain Power are excited to announce a program where you can get a Powerwall to back up your home with reliable energy for only $15/month.

Green Mountain Power intends to deploy 2,000 Powerwalls for $15/month or a $1,500 one-time fee.

In some ways, it’s similar to renting autonomous car, as Tesla would also build a platform joining those who have product, with those who are in need of using a product.

Learn more about the program here.

The Next Step in Energy Storage: Aggregation

Today, modern utilities and grid operators are utilizing battery technology like never before. The next step in tapping the potential of energy storage is putting together thousands of batteries to form an energy network that utilities can use to deliver immediate value for the electric system. Tesla can now bundle Powerwall and Powerpack batteries into a single portfolio, also called aggregation, to make the grid cleaner and more efficient. Meanwhile, Powerwall customers who allow Tesla and the utilities to use their battery when energy demand is highest will not only have home backup power, but will also receive compensation for its use on the grid.

To introduce this program, Tesla and Green Mountain Power, a utility in Vermont, are working together to bundle Powerwall and Powerpack batteries into a single resource of shared energy for the first time. Green Mountain Power will install Powerpacks on utility land and deploy up to 2,000 Powerwall batteries to homeowners within the utility’s service territory, which will enable more renewable energy and increase grid efficiency. For only $15 a month or a $1,500 one-time fee, customers will receive backup power to their home for the next 10 years, eliminating the need for traditional, manually-controlled backup generators that use fossil fuel. At the same time, Tesla and Green Mountain Power will provide a variety of grid services using the network of installed Powerwall batteries, delivering dynamic capacity (energy reserves that can be dispatched when they are needed most) and additional grid stability, while sustainably lowering costs for all utility customers. Tesla will also work with Green Mountain Power to dispatch the aggregated resource into New England’s wholesale electricity markets, producing additional savings for customers in the region.

The Green Mountain Power program is just the beginning. Tesla is working with energy retailers, grid operators, utilities and aggregators across the globe to unlock the ability for Tesla batteries to deliver grid services while providing reliable power at all times of day. As the deployment of Tesla batteries continues to accelerate, we can scale the adoption of renewable energy, cost-effectively modernize our aging infrastructure, and improve the resilience of our electric grid to benefit everyone.

To find out more about how to aggregate Tesla batteries to strengthen the electric grid and accelerate the transition to sustainable energy, visit tesla.com/utilities.

Categories: ESS, Tesla

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21 Comments on "Tesla Energy Storage Turns To Aggregation"

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M Hovis

Since our electrical co-op does not supply net metering, and we do not have an aggregator for our solar power, we are ready for this product.

It will make more sense when net metering disappears. As long as one has net metering, they have little incentive to invest in storage technologies. With net metering, ulities can justify transmission burdens and peak load costs.

The goal with solar/storage is not to run independently of the grid, nor to supply 24 hours of renewable energy. The goal is to eliminate peak load and peaker power plants. This is what this is all about.

There will still be those that argue that your EV is not solar powered as you charge at night. But with our signing on to EV/solar/storage/aggregation, I know that we have effectively changed the power grid and energy consumption as we know it.


I think the goal posts are moving.

George Bower

Hey Mark,
This product is genius.

To date the utilities have been at odds with private residential solar system people because of net metering….as we both know.

The smart thing about this product is it could be a benificial thing for the utilities and not just a “free battery” which is what they don’t like.

I guess I might be worried that the power wall might be drained when the power went out.


I was going to say this George.

It sounds like it would be great for the utility to be able to tap into your battery, but it might not be so great for the homeowner. The main reasons to have the Power Wall would be to get you through an outage, charge your car or go off the grid completely. If the utility drained your battery, you would be out of luck.

There is now way I would go for this, if I invested in a Power Wall.


If you have your own storage certainly you are using your own solar to run your car.

But with aggregation you don’t know. With aggregation the battery is a service to the utility, it’s just located at your house. If they want to command it to load up on coal electricity (to mop up excess base load) then they can do so.

I think aggregation is a great idea. But if you goal is to really be using your own solar power then you shouldn’t be participating in aggregation. At least not if your utility isn’t making promises about the greenness of power delivered to you.


How about having one powerwall connected to the grid and one only connected as your privet backup.

Like deciding if you wish that your model3 will be shared with other drivers or not.

Jim B

Everyone should jump on this. They will install all kinds of extras that let you go off grid. It will tie into your loads from an inverter so they will have to add in some sort of switch over. Get it now. Then add solar panels and eventually stop paying the $15 but keep most of the changes. Then get some Leaf battery modules for super cheap and DIY your own system!


“for use when energy demand is at its highest”

Should be something like:

“In order to use the stored energy when grid demand is highest”

George Bower

“For only $15 a month or a $1,500 one-time fee, customers will receive backup power to their home for the next 10 years, eliminating the need for traditional, manually-controlled backup generators that use fossil fuel.”

How do I know that my power wall batteries will be full when I need backup power?


The battery probably won’t be full when the outage starts since it was already used.

But since the utility pays a large part of the cost, in the end there is a very high chance you’ll get more power for the money than if you had paid the entire price alone.

Suppose the pack is 50% full at the start of the outage.
You paid only 20% of the cost, you get more than twice the capacity/cost.

M Hovis

I don’t think it will George. I don’t think battery backup is part of the deal. The focus is helping eliminate peak load for the utilities and burning less fossil fuel for all of us.

Again, for those with net metering, it’s a “meh”.

For me, I pay .12 cent per kWh and get only .05 cent for what I sell. So $15 per month is easy math. I like the $1500 one-time-fee even better. The savings is not nearly as important as knowing that I am a)doing my part to eliminate peak load and b)doing my part by burning less fossil fuel.

A powerful aggregator is what has been missing.


” I don’t think battery backup is part of the deal.”


“For only $15 a month or a $1,500 one-time fee, customers will receive backup power to their home for the next 10 years, eliminating the need for traditional, manually-controlled backup generators that use fossil fuel.”

M Hovis

Not implying that you won’t have it for backup. I just don’t think as George asked that you will be the priority and you will be guaranteed the backup power. That is just an opinion. I certainly don’t know that to be true.


You definitely don’t. Good point. The utility is playing a little fast and loose with their description here.

Tesla Bargain

We can only hope that all Tesla Energy activities will happen globally as well, and not only in the USA.


The utility gets frequency regulation and peak-shaving, the customer gets a wall ornament and some level of backup power. The devil is in the contract details, of course.

Even smarter — always plug EVs in at work, home and shopping and aggregate them. You don’t need V2G, just have them ramp their draw up and down to provide frequency regulation and ramp it down to zero during peaks. Utilities get the same benefits without the investment, EV owners get ultra-cheap rates. Win-win.

M Hovis

True to all of that, except playing a role in changing how peak power is produced is pretty huge. All early EV pioneers here paid a premium to participate in the transportation evolution. $1500 over ten years seems to be a small price to pay in comparison. And for those without net metering, it is pretty much a wash.


You’re not aggregating my EV energy. I need my range.

Are you just talking about having EVs reduce their charging rates during peak times? The Bolt EV already supports this. It’s unclear if its ever activated. This is ordinary smart grid stuff.


I think the Bolt just lets you program times, so you schedule around TOU rates. That’s OK for now but it doesn’t scale. The last thing the grid needs is a few million EVs to start charging simultaneously at 11pm or whatever.

I’m talking about something more like JuiceNet, where the charger responds to real-time signals from the grid.


This is all about how many cycles batteries can last. If Tesla 2170 cells really last 2X more cycles and time than before, then this makes a lot of sense, and next step when Tesla will use 2170 cells in all cars (By Year end Elon said) we could also expect Tesla to allow V2G = Vehicle to Grid direct both ways connectivity. Not just Powerwalls….


Other side of the problem will be the Grid to be able to accept usch multiple small disseminated energy sources, hence move to a Smart Grid, versus the current one way hierarchical grids we have today arround the world, inherited from previous century. I was told this would take years and years and tons of money, to move to such Smart Grids in Europe, following some Pilots in France /Grenoble for example….