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Tesla Energy Plan launches in Australia to lower electricity rates with virtual power plant

Tesla has launched a new “Tesla Energy Plan” in South Australia to try to lower electricity rates in a region notorious for high energy costs.

The plan is backed by a Tesla Powerwall-powered virtual power plant.

South Australia have had a lot of power issues over the years.

Tesla first got involved by supplying its Powerpack in a large energy storage project owned by Neoen that became known as the “Tesla Big Battery.”

While in the region during the launch of the big battery, Tesla CEO Elon Musk was interviewed and presented with the significant hardship that Australia’s high electricity prices are putting on low-income families.

The unstable grid and high electricity costs result in some families having to decide between keeping the lights on or going hungry.

Musk was visibly emotionally affected by the issue and vowed that Tesla would “work harder” to help solve the problem.

He wasn’t kidding because a few months later,  Tesla announced that it reached a deal with the South Australian government to install solar arrays and Powerwalls on up to 50,000 homes – many of them homes of low-income families.

Over the last few years, Tesla has been deploying more Powerwalls to grow the virtual power plant, which provides grid services to reduce cost and backup power in case of a power outage.

Last summer, Tesla had 1,000 Powerwalls on the network, and they were authorized for a new phase to add another 3,000 batteries.

Now, Tesla is launching what it calls the “Tesla Energy Plan on the Tesla Virtual Power Plant.”

It’s basically a time of use energy plan specifically made for Powerwall owners in South Australia.

Tesla writes about the plan:

Enjoy the benefits of Powerwall, solar and the Tesla Energy Plan on the Tesla Virtual Power Plant.

Purchase Powerwall with the Tesla Energy Plan and access South Australia’s Home Battery Scheme discount.

As part of the Tesla Energy Plan, you’ll receive $220 (incl GST) in grid support bill credits1, a generous Feed in Tariff and flexible Time of Use rates, to help you make the most of energy when it’s cheaper, all while driving the cost of your energy bill down.

When connected to the Tesla Energy Plan, Tesla’s world leading software will monitor and manage the performance of your Powerwall to deliver the most benefits to you with the added certainty of knowing we’ll only cycle your battery up to 50 discharge cycles a year2.

People in South Australia can sign up for the “Tesla Energy Plan” here.

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