After more than a year of growth and learning, we’ve made important updates to the Peak-Time Payback (PTP) with Tesla Battery Program to better support you and your home battery system. These updates are designed to optimize battery performance, enhance your home’s resiliency and support participation in ERCOT’s Aggregated Distributed Energy Resource (ADER) program. As part of this progress, the program’s Terms & Conditions (T&Cs) have been updated to align with the next phase of the program.
Below are the most common questions about what’s changed, why these changes are being made and what they mean to you.
Why are you updating the T&Cs?
As the program—and the technology behind it—continues to evolve, we’re updating the Terms & Conditions to provide greater clarity, reflect current operations and align with requirements for participation in ERCOT’s ADER program.
When do the new T&Cs take effect?
The updated Terms & Conditions take effect on November 1, 2025. If you wish to withdraw from the program and unenroll, please contact us by October 31, 2025.
If we do not receive notification of your withdrawal from the program, acceptance will be assumed, and your participation will continue under the new Terms & Conditions.
What is changing with the T&Cs?
We recommend reading the Terms & Conditions in full; however, we have highlighted some of the most significant changes below:
Aggregated Distributed Energy Resources, referred to as ADER, is a pilot program led by ERCOT. ADER utilizes members’ home batteries as dispatchable generation. When grouped together, the batteries become a virtual power plant to support the ERCOT grid. In the past, only large power plants and industrial facilities were capable of helping balance the grid. ADER changed that by allowing smaller energy resources to join together and operate as a single, coordinated energy asset. This helps:
• Keep the grid stable during high demand and low supply
• Improve reliability across the system
• Reward homeowners like you through rebates for participating
Manual and automated events
Under the program, GVEC may schedule and operate manual Peak-Time events as needed to help reduce seasonal demand, generally during May through September.
Automated events will occur for the remainder of the time, responding to market conditions—primarily through energy arbitrage and dispatchable generation.
Energy arbitrage is a way to save money, and with batteries works like this: electricity is stored when wholesale power prices are low and used (or “dispatched”) when prices are high. It’s similar to filling up your gas tank when fuel is cheaper so you don’t have to pay more later.
In practice, a battery charges when demand on the grid is low and electricity costs less, then discharges that stored energy during peak times when power is more expensive. This process not only helps lower costs for participants but also supports GVEC in keeping rates steady today and reducing the likelihood for rate increases in the future.
During either type of event, your eligible Battery Energy Storage System (BESS) may automatically charge, discharge, go into standby, or otherwise respond to grid conditions in line with Program requirements.
Event cycles defined
The BESS may be cycled one or more times per day, depending on market conditions. A “cycle” is defined as a complete charge and discharge of the BESS. BESS cycling should not affect the system’s warranty.
Opt-Out of events
Members may opt out of manual, seasonal peak-time demand reduction events at any time—before the event begins or while it is in progress, up until it concludes. To opt out, open the Tesla app and navigate to the “Virtual Power Plant” section. If the event is scheduled, select “Scheduled Event;” if the event is already underway, select “Active Event.” Then, click “Opt Out for this Event” to decline participation.
The following settings will be locked for the duration of program participation, meaning members will no longer be able to adjust them in the Tesla app:
This setting enables any electrons flowing from your BESS to not only power your home but also flow directly to the grid. It allows you, the participant, to be paid not only the rebate(s) for participation in the program but also be compensated for any energy being sold back to the grid at both the Delivery Charge and Generation & Transmission Charge under GVEC’s Tariff. Effective November 1, 2025, the Delivery Charge applies to all energy exported through your meter—whether from solar and/or batteries. In addition, if you have not received the full retail rate for excess energy previously exported to GVEC’s distribution system, you will be retroactively credited.
• Allowance of grid charging
This setting allows your BESS to charge from solar (if available) and from the grid, enabling charging at any time of day. When batteries are charged—whether from solar energy or from the electrical grid—the overall effect on your home’s energy usage and sales is offset or “net neutral”.
• Time-based control operating mode
This operation mode is designed to optimize Tesla battery usage based on real-time energy rates. The system learns your energy usage habits, charging the battery when electricity is cheapest—such as during off-peak hours or from solar—and discharging it when rates are highest. This mode prioritizes economic value over energy independence, which aligns with the intent of the program.
• Normal backup reserve set to 30%
While at times it may appear that limited capacity is available for backup power, once an outage is detected and backup mode is activated, all previous settings are overridden to prioritize resiliency. In backup mode, the battery can be fully discharged down to 0% if necessary to provide backup power.
Additionally, features like Storm Watch further enhance preparedness by preemptively charging the battery to maximize available energy, often hours or even days in advance of a forecasted event. This ensures that, even when participating in regular events, the system retains the ability to provide significant backup support when it matters most.
Who does the 23 KW rebate cap apply to?
Due to safety limitations from Tesla in standard installations, the system’s maximum rated output is limited. Additional capacity may require electrical upgrades. The 23KW rebate cap applies to all members who enroll in the program on or after November 1, 2025. Rebates for current participants will not be affected.
What if I don’t agree to the updated T&Cs?
If you don’t wish to accept the updated Program Terms & Conditions, you may choose to unenroll from the program by emailing peaktimepayback@gvec.org by October 31, 2025. If applicable, unenrollment’s submitted by October 31, 2025, will not require repayment of the upfront rebate; unenrollment’s after that date will.
How will I know the true effects of the locked settings?
Beginning mid-October, a two-week trial period will be implemented allowing you to experience the locked settings and automated events. We hope the article and trial period will be helpful in your decision to continue in the PTP program.
How will I be notified of future changes to the T&Cs?
We periodically review the Program Terms & Conditions to ensure they remain clear, up to date, and aligned with the evolving goals of the program. If any future changes are made that affect your participation or rights as a member, we will notify you directly via your contact information on file.
Who can I contact if I have more questions?
If you have general questions, please reach out to our team at peaktimepayback@gvec.org.
