Tesla rolls out Virtual Power Plant to SDG&E customers in San Diego
Tesla’s Virtual Power Plant program, a way for Powerwall owners to make money selling energy to the grid in times of need, is rolling out to San Diego Gas & Electric utility customers now.
SDG&E announced late last month the start of its own virtual power plant (VPP) program which would leverage household backup batteries and smart devices to reduce demand and increase supply of electricity to the grid during “demand response” events – when the grid is stressed and needs to spin up extra capacity to keep the lights on.
However, Tesla’s program is separate from SDG&E’s, even though it’s part of the same service area.
Demand response events are often expensive, because the price of a blackout is high, and the price of marginal electricity generation (often via gas peaker plants) is costly both economically and environmentally. During last year’s record heat wave, the wholesale spot price of electricity got as high as ~$2,000/MWh in parts of the state (as of the writing of this article, the price is currently ~$49/MWh).
A home or business with access to energy storage might want to leverage that storage by buying electricity while it’s cheap, and then discharging it to the grid while it’s very expensive. While this is possible on a home-to-home basis by arbitraging cheap off-peak energy and using it during on-peak times, it isn’t really great for widespread grid events unless several home storage systems can be joined together.
What does a Virtual Power Plant do?
Enter the VPP, which combines thousands of internet connected devices across a wide area and manages them all together in order to make a significant difference on the grid in times of need.
SDG&E has been running its own pilot VPP program since December, which has been tested 17 times. Participants get a message that a demand response event is coming and can choose to opt-out for certain devices (for example, to keep their air conditioning running at full blast). SDG&E says that the opt-out rate has been very low so far, suggesting that participants are happy to do their part when the grid is in need.
We saw similar behavior statewide in California last year when the grid faced its highest level of demand ever recorded on an exceptionally hot day. California’s grid operator sent out a text message to everyone in the state asking them to conserve energy, and Californians reduced their energy use by multiple gigawatts in mere minutes, thus saving the grid from overloading statewide.
But with a virtual power plant, participation doesn’t need to be voluntary, it can be automatic (for those who have signed up). And in exchange for the valuable benefit of helping to avoid blackouts by adding electricity to the grid when it is most expensive, VPP participants can be paid for their service.
We’ve already seen this happening with one of the largest and earliest VPPs out there, Tesla’s VPP in Northern California, in the service area of Pacific Gas & Electric. We saw participants receive checks of up to $575 for their first year of participation in the program.
Growth of Tesla VPP as it expands to San Diego
Tesla’s VPP program has been growing. Last time we checked in last year, it was capable of providing 50 MW across California, which is about as much as one average gas peaker plant (the state has about 7GW of gas peaker capacity total). This was right after Tesla opened up the program to SoCal Edison customers.
As of now, the site we were using to track growth has changed its measurements a little, but it looks like the system can provide ~116MWh of potential backup energy – so as much as running two gas peaker plants for an hour or so.
And as of now, Tesla Powerwall owners in San Diego can join the Virtual Power Plant program by enrolling through the same Tesla app which they use to manage their Powerwall.
All owners need to do is open up their app to the Powerwall page and tap on the “Virtual Power Plant” item, which should be at the top of the list, as seen below:
Tesla will provide an estimate of how much you can earn by participating in the program, based on the size of your system and your standard usage. Of course this is just an estimate, and you can always change your settings or usage to try to maximize this number, especially on days where demand response events are likely (e.g., hot days in California, which tend to stress the grid the most due to overuse of air conditioning).
In addition to California’s struggles with hot weather events (which are worsening due to climate change), SDG&E has rather wide time-of-use rates, with super off-peak rates of 24 cents per kWh, raising as high as 70-80 cents during on-peak times. This makes Powerwalls more attractive due to the possibility of energy arbitrage – and even more attractive during demand response events, where effective wholesale rates can go much higher than that.
Tesla also is also working on rolling out VPPs to Texas and Puerto Rico, and has another massive VPP in South Australia, an area which has been struggling with electricity issues for years now.
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Can Kia’s first electric sedan live up to the hype? After launching the EV4 in Korea, we are finally seeing it in action. A new test drive of the EV4 gives us a closer look at what to expect as Kia prepares to take it global. Here’s how it went down.
Kia EV4 test drive: The good, the bad, and the ugly
Kia claims the EV4 will “set a new standard in electric vehicles” with long-range capabilities, fast charging, and a sleek new design.
The electric sedan features a unique, almost sports-car-like profile with a long-tail silhouette and added roof spoiler.
Kia claims it is “the new look of a sedan fit for the era of electrification.” Despite its four-door design, the company is calling it a new type of sedan.
The design is not only eye-catching, but it’s also super efficient. With a drag coefficient of just 0.23, the EV4 is Kia’s most aerodynamic vehicle so far, enabling maximum driving range and efficiency.
Kia opened EV4 orders in South Korea in March, starting at about $29,000 (41.92 million won). It’s available with two battery options: 58.2 kWh and 81.4 kWh. The entry-level “Standard Air” model, powered by the 58.2 kWh battery, is rated with up to 237 miles of driving range.
The “Long-Range Air” variant starts at 46.29 million won ($31,800) and has a driving range of up to 331 miles (533 km) in Korea.
With charging speeds of up to 350 kW, the EV4 can charge from 10% to 80% in around 29 minutes. The long-range battery will take about 31 minutes.
The interior boasts Kia’s latest ccNC infotainment system with a 30″ Ultra-wide Panoramic Display. The setup includes dual 12.3″ driver displays, navigation screens, and a 5″ air conditioning panel.
With deliveries kicking off, we are seeing some of the first test drives come out. A review from HealerTV gives us a better idea of what it’s like to drive the EV4 in person.
Sitting next to Kia’s first pickup, the Tasman, the reviewer mentions the EV4 feels “particularly newer.” The test drive starts around the city with a ride quality similar to that of the K5, if not even better.
As you can see from the camera shaking, the ride feels “a bit uncomfortable” on rough roads. However, on normal surfaces and speed bumps, Kia’s electric sedan “feels neither too soft nor too hard,” just normal. The reviewer calls the EV4’s overall ride quality “quite ordinary” with “nothing particularly special about it.”
When accelerating, the electric car was smooth in the beginning but felt “a little lacking in later stages.” Overall, it should be enough for everyday use.
One of the biggest issues was that the rear window appeared too low. The rear brake lights also stick out, making it hard to see clearly through the rearview.
Keep in mind that the test drive was the Korean-spec EV4. Kia will launch the EV4 in Europe later this year and in the US in early 2026.
In the US, the EV4 will include a built-in NACS port for charging at Tesla Superchargers and a driving range of up to 330 (EPA-est) miles. Prices will be revealed closer to launch, but the EV4 is expected to start at around $35,000 to $40,000.
Would you buy Kia’s electric sedan for around $35,000? Or would you rather have the Tesla Model 3, which starts at $42,490 in the US and has up to 363 miles of range? Let us know in the comments.
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In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss Tesla Model Y RWD in the US, Cybertruck bait-and-switch, Rivian earnings, and more.
The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:
We now have a Patreon if you want to help us avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.
Here are a few of the articles that we will discuss during the podcast:
Here’s the live stream for today’s episode starting at 4:00 p.m. ET (or the video after 5 p.m. ET):
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Hyundai’s 2026 IONIQ 9 EV is launching with a lease deal, affordable rates, and a big rebate, making the automaker’s largest EV a competitive choice.
Leasing a 2026 Hyundai IONIQ 9
CarsDirect reports that, according to a bulletin sent to dealers, the 2026 Hyundai IONIQ 9 S is $419 for 36 months with $4,999 due at signing based on 10,000 miles a year. That makes the effective cost of the nationally available lease $558 monthly.
That’s slightly more expensive than the Model Y Long Range Rear-Wheel Drive, which debuted this week. It can be leased for $399 with $4,093 at signing or $513 per month. That’s a price difference of only $45 per month, potentially making the IONIQ 9 a better value, since Hyundai’s first three-row electric SUV gives you more car for the money.
The IONIQ 9 offers 335 miles of driving range, fast charging capabilities, room for seven, and prices start at $60,555.
Financing and incentives
Hyundai isn’t offering rebates on the IONIQ 9, but good news – it qualifies for the $7,500 federal EV tax credit because it’s manufactured in Georgia.
The IONIQ 9 has national financing rates as low as 1.99% APR for up to 60 months. For a lower monthly payment, there’s a 72-month option at 2.99%. Compare that to the most affordable 2026 Tesla Model Y, which has a 72-month option at 5.49% APR, and it shows what a good deal it is.
There’s also a $5,000 financing incentive available, but you have to choose a loan at a higher interest rate to get it. The $5,000 Dealer Choice Bonus helps lower prices if you finance at 5.99% for 60 months and 6.59% for 72 months.
However, it’s cheaper to opt for the 1.99% APR deal instead of the Dealer Choice Bonus and higher interest rate; CarsDirect found that the 1.99% APR could save IONIQ 9 buyers up to $2,200:
On a 5-year loan at 1.99%, we estimate the IONIQ 9 would cost $63,084. With the APR and rebate combo, it would cost $63,783. Here, opting for the lower rate would save buyers roughly $700. But that’s not the whole story. That’s because Dealer Choice offers, available on many Hyundais, allow a mark-up of up to 1%.
As a result, the $5,000 rebate and higher rate of 6.99% could cost buyers over $2,200 more than simply taking the lower rate to begin with.
If you live in an area that has frequent natural disaster events, and are interested in making your home more resilient to power outages, consider going solar and adding a battery storage system. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them.
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