Tesla's energy division is making significant strides in Texas by partnering with Sunrun, a leading provider of solar and home energy solutions, to create "virtual power plants" that will support the state's energy grid and offer financial benefits to homeowners.

Sunrun announced its collaboration with Tesla Electric, Tesla's retail electricity provider in Texas, to leverage Tesla Powerwall batteries. This partnership aims to enhance the Texas energy grid by allowing Powerwall owners to manage their home energy systems and sell excess energy back to the grid. This initiative not only optimizes energy use but also provides homeowners with annual payments, currently set at $400 per Powerwall for 2024.

The news of this partnership led to a significant increase in Sunrun's stock, which jumped over 10%. The collaboration has already enrolled more than 150 Sunrun customers in an aggregated power program, utilizing stored solar energy from home batteries to bolster the grid during peak demand periods.

Sunrun CEO Mary Powell highlighted the importance of this initiative, especially given Texas's recent struggles with its energy grid due to severe weather events. She noted that Texans are increasingly adding batteries to their solar installations to ensure energy reliability and participate in community-based energy solutions.

Tesla's energy business has been growing rapidly, with the company reporting a record deployment of battery storage in its latest earnings report. Wall Street analysts, including Morgan Stanley's Adam Jonas, are optimistic about Tesla Energy's potential, viewing it as a major growth driver for the company.