Tesla takes virtual power plant and battery-based “energy plan” to Victoria

Victorian households can now join Australia’s largest virtual power plant, after Tesla announced on Tuesday that it had extended its time-of-use, Powerwall 2 battery-based retail electricity offering to that state.

The Tesla Energy Plan, which was first offered in South Australia as an extension of the VPP Tesla has built to an impressive size in that state, offers Victorian Powerwall customers access to time-of-use tariffs, which aim to reduce customer electricity bills while also reducing demand on the grid during peak periods.

As Tesla puts it: “The unique smarts of Tesla’s world leading technology will monitor and manage your Powerwall, assessing usage patterns to help ensure your home is powered by the most efficient source. Reducing your energy bill and benefiting your community at the same time.”

And: “Our world leading technology optimises the use of your Powerwall based on your energy needs, market conditions and anticipated grid events to ensure it benefits your home first, while also supporting the community. In return, you receive competitively low energy rates and monthly Grid Support Credits.”

According to the Victorian postcode One Step Off The Grid punched in to the website – which sits in the United Energy network area – this would result in an off-peak rate of 16.50c/kWh and 33c/kWh during peak, which is from 3pm to 9pm daily. The feed-in tariff for solar sent to the grid is 7c/kWh.

According to the terms generated via Energy Locals, the same retailer working with Tesla on the Energy Plan in SA, this amounts to roughly 24% less than the Victorian Default Offer based on 4000 kWh/year for a residential customer (as at September 01, 2021).

Other benefits include a $220 of “grid support” payments a year, per Powerwall, which are applied to customer bills monthly. In this case, there is no discount offered on the purchase price of a Powerwall – this was offered to new participants in the SA scheme back in March.

To buy a Powerwall, households are looking at total equipment cost  of $A12,750, including GST and excluding installation.

Victorian participants who sign up as new Powerwall owners do, however, get an extended warranty on their battery, taking it to a total of 15 years.

The deal also promises participants in the VPP that their Powerwall will only be cycled up to 50 discharge cycles per a year and that it will always maintain a back-up reserve of up to 20% should they experience a blackout – roughly two hours of power for the “average” household.

Eligibility for the Tesla Energy Plan is restricted to homes with a solar PV system less than 15kW and no zero export restrictions in place.