Tesla has introduced a new service in Texas called the "Powerwall Lease," allowing households to rent its Powerwall batteries for backup power during outages. The program, offered by Tesla Electric, requires customers without solar panels to lease exactly two Powerwall units, providing a total storage capacity of 27 kilowatt-hours (kWh). The initial monthly cost is $122 (about €112), plus a one-time installation fee of $100 (about €92), though installation is free. However, Tesla offers a monthly credit of $87 (about €80) to those enrolled in the Tesla Electric Backup plan or the Virtual Power Plant (VPP) program, reducing the monthly cost to $35 (about €32) before taxes. The lease agreement is for 12 years and is non-cancelable. Over time, the customer’s actual cost will increase slightly, as the base monthly rate rises by 3 percent each year, while the credit remains fixed. This means the effective cost per month will gradually increase. Tesla manages the Powerwall units to support the stability of the electrical grid by integrating them into a virtual power plant (VPP). A VPP is a network of distributed energy resources, like home batteries, that can be controlled collectively to behave like a single power plant. When electricity is plentiful and inexpensive, the system can instruct some units to charge, and when demand rises, stored energy can be released back into the grid. Tesla ensures that at least 20 percent of the battery’s capacity is always available for the homeowner’s use, and the full stored energy can be accessed during a power outage. A feature called Storm Watch allows the batteries to charge fully in advance of severe weather events. This model is part of a growing trend in Texas, where companies are offering similar services. Base Power, for example, is following a similar approach, leasing low-cost home batteries and aggregating them for grid benefits. Base Power plans to expand its operations beyond Texas in the future. The Powerwall Lease represents a shift in how households can access energy storage solutions without the upfront cost of purchasing the equipment. While the initial cost is reduced through the credit, the long-term financial commitment is significant due to the annual rate increases. This model could become more widespread as more companies explore ways to integrate residential energy storage into broader grid management systems, helping to stabilize energy supply and reduce reliance on traditional power plants.