Tesla and SA government to build 250MW ‘virtual power plant’ on 50,000 homes

First resident, Des Jenkins, to receive the Tesla solar system (ABC News)

The South Australian government with Tesla announced, prior to local elections, that they plan to install, for free, solar panels and batteries on 50,000 homes to make a 250MW virtual power plant. The participating house holders will not own the panels and batteries but will receive a 30% discount on their power bills. The homes will have a 5KW solar PV system with 13.5KWh Tesla Powerwall 2 battery. Half of the solar panels required for the scheme must be supplied from Australia. The energy retailer will have the right to tap output of the batteries and solar panels to supply power into the grid.

The government will first use its Housing Trust (social housing) properties and later the homes of others who want to be involved. A trial on trust homes has begun and 100 systems will be installed by 30 June with another 1000 over the following year with the remainder being installed by 2022. There has already been a lot of interest from house holders to participate in the scheme.

The $800 million project (see more details here) will ultimately bring together 250MW of capacity and 650MWh of storage, allowing the combined resource to be pooled to help provide grid stability and extra capacity when supply is short. An initial $2 million will be provided as a grant and a further $30 million as a loan. The government is seeking investors in the program but it will also receive funds from the sale of electricity from the panels.

For further reading:

Elon Musk’s Tesla and SA Labor reach deal to give solar panels and batteries to 50,000 homes. ABC News, February 4, 2018.
Tesla to build 250MW “virtual power plant” in South Australia. RenewEconomy, February 4, 2018.

Postscripts:
- SA Liberals vow to continue energy transition, go big with batteries. Renew Economy, May 23, 2018.
- South Australia's Virtual Power Plant. SA Government.