Powerwall backup batteries can be used to sell excess energy back to the grid, thanks to a new service launched byTesla. To be eligible, residents need to live in areas that allow for retail choice, and will need to wait for an invitation to join through theTesla app.

When most viable, those who join the new service will be able to sell energy from their Powerwalls to the grid. When pulling from the grid, the company gives offsets from renewable energy sources.

The Tesla app with the new Electric service.
The Tesla app with the new Electric service.
Image: Tesla

The state of Texas broke its peak power demand record during the summer when it was in a heat wave. In July of this year, the Electric Reliability Council of Texas (ERCOT) asked residents to conserve power in order to avoid charging during peak hours, and in order to assist with that message,Tesla pushed notifications to owners in the state to avoidcharging during peak hours. The ERCOT board unanimously approved a pilot project in October that allowedTesla to go ahead with its VPP.

The company built a 250-megawatt virtual power plant in Australia last year and is currently working on a project in Texas. More than 300 Powerwalls are being used to power homes on the island of Miyako-jima.

The current virtual power plant endeavor is a partnership betweenTesla and the California utility company, Pacific Gas and Electric. At times of emergency or major energy shortages, the Powerwall owners will be pulled from their power. Powerwall owners who chose to do so would be able to prevent power outages in their surrounding communities and they would also be able to make money.

The state of Texas has become a hot spot for the company. He moved his company's headquarters from California to Austin last year. The Lone Star state is where the new $1.1 billion Gigafactory is located and where the company plans to build Cybertrucks. Texans can't buy cars directly in the state because of outdated laws.