Energy
Tesla PowerWall Debuts: $3,000 Home Battery
Tesla Energy has announced its new PowerWall residential storage battery. Price for a 7 kWh system is just $3,000. Several batteries can be interconnected.
The world got its first look at the Tesla PowerWall yesterday during a splashy debut presentation – an event powered solely by energy collected from solar panels earlier in the day and stored in an array of PowerWall batteries. In essence, the PowerWall is a large uninterruptible power supply for homes. Elon Musk was in particularly high spirits as he modestly proclaimed this new technology could eliminate the world’s need for fossil fueled electricity forever.
As technology journalist and Tesla owner Daniel Sparks correctly predicted on Tuesday, Tesla’s battery storage business will be conducted under the name Tesla Energy — a name the company reserved more than a decade ago. Tesla Energy will provide battery storage systems for three potential markets; residential, commercial and utilities.
Tesla PowerWall Residential System
The biggest news about the Tesla PowerWall battery storage system for residential customers is the price. A 7 kWh PowerWall is just $3,000. That’s far less than most observers expected. A 10 kWh system lists for $3,500. Do you need more than 10 kWh of storage? No problem. The units are designed so that as many as 9 of them can be plugged together for a total of 90 kWh of storage.
Here are the specs as provided by the Tesla Energy website:
- Technology Wall mounted, rechargeable lithium ion battery with liquid thermal control.
- Models 10 kWh $3,500 — for backup applications. 7 kWh $3,000 — for daily cycle applications
- Warranty Ten year warranty with an optional ten year extension.
- Efficiency 92% round-trip DC efficiency
- Power 2.0 kW continuous, 3.3 kW peak
- Voltage 350 – 450 volts
- Current 5 amp nominal, 8.5 amp peak output
- Compatibility Single phase and three phase utility grid compatible.
- Operating Temperature -4°F to 110°F / -20°C to 43°C
- Enclosure Rated for indoor and outdoor installation.
- Installation Requires installation by a trained electrician. AC-DC inverter not included.
- Weight 220 lbs / 100 kg
- Dimensions 52.1″ x 33.9″ x 7.1″ (130 cm x 86 cm x 18 cm)
- Certifications UL listed
Customers can sign up on the company website now to reserve a battery. Deliveries are expected to begin in late summer, with more capacity coming online as production at the Tesla GigaFactory begins in late 2016.
The PowerWall will be marketed to all homeowners, not just those with solar panels or other renewable energy systems. The concept is simple. The battery gets charged overnight when electricity rates are lowest. Then it is used to power the home during the morning and evening peak usage times, saving the customer enough money to more than pay for the system and installation.
If the customer has a home solar system, it will charge the PowerWall during the day, reducing the need to buy any electricity from the grid even further. Depending on local conditions, customers can even sell any excess power back to the local utility company, reducing their electric bills that much more.
Tesla PowerPack For Commercial Customers
Tesla Energy has its sights on more than just residential customers. We know larger battery storage systems have been installed in 11 Walmart stores already. Now Amazon has committed to an enormous 4.8 mWh system for its western US data center, according to Gizmodo. Selected Target stores will also get Tesla Energy PowerPack systems.
The benefits of on-site battery storage are magnified for large scale commercial operations. In the traditional business model used by utility companies. they have no choice but to buy power from the grid during peak demand times. Having on-site energy storage capability will allow then to charge their batteries when electricity costs the least and use that stored energy when it benefits them the most. Here’s more from the Tesla Energy website:
Based on the powertrain architecture and components of Tesla electric vehicles, Tesla energy storage systems deliver broad application compatibility and streamlined installation by integrating batteries, power electronics, thermal management and controls into a turn key system.
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Tesla’s energy storage allows businesses to capture the full potential of their facility’s solar arrays by storing excess generation for later use and delivering solar power at all times. Business Storage anticipates and discharges stored power during a facility’s times of highest usage, reducing the demand charge component of the energy energy bills. Energy storage for business is designed to:
- Maximize consumption of on-site clean power
- Avoid peak demand charges
- Buy electricity when it’s cheapest
- Get paid by utility or intermediate service providers for participating in grid services
- Back up critical business operations in the event of a power outage
It’s a simple business case to make — our energy storage system will save your business tons of money. What business owner wouldn’t be happy with that?
Tesla Energy Grid Scale Storage
The most important part of Thursday’s announcement may turn out to be Tesla Energy’s entry into the grid scale energy storage market. Southern California Edison and OnCor have indicated interest in partnering with Tesla Energy on large scale energy storage installations. Elon Musk said Thursday night that phase of the business will be based on multiples of 100 kWh basic units that can interconnect to provide up to 10 megawatt-hours of electrical storage. Why is that important?
Since utility grids were first invented, the model has been for large generating plants located in or near major cities supplying electricity to the surrounding area. Eventually, long distance power transmission lines were constructed to connect those city scale power systems into regional power grids supplying millions of customers.
But renewable energy sources like wind or solar farms tend to focus on relatively small installations located far from urban centers. They feed their power into the grid from the edges, not from the middle. Roof top solar sytems for individual homes and small businesses feed small amounts of power into the grid from hundreds or even thousands of locations in the middle of the grid.
Utility grids are simply not constructed to behave efficiently with all that electricity being supplied from multiple sources. Home solar in particular has led to a dramatic increase in voltage fluctuations across entire grids. If those fluctuations are large enough, they can damage computers and other digital devices. Grid scale storage batteries can absorb all those spikes and fluctuations coming in and feed clean, well regulated electricity back out.
Generating plants and utility grids are expensive to build and maintain. Industry observers estimate utility companies in North America will need to spend as much as $ 1.5 trillion dollars by 2030 to build new electric generating facilities and maintain the utility grid. Some industry executives suggest that the best way to move forward is to dismantle the grid and transition to a microgrid model.
According to Green Tech Media, David Crane, CEO of NRG Energy, told an industry conference in February, 2014, “There will come a day, in a generation or so, when the grid is at best an antiquated system to a completely different way of buying electricity. Everyone just stop a moment and think how shockingly stupid it is to build a 21st-century electric system based on a system of 130 million wooden poles. Stop trying to rearrange the deck chairs on the Titanic, and start talking about, ‘How do we get rid of the grid?’”
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Elon Musk will be more than happy to help Crane and his peers get rid of their grid. In his remarks, he told the audience that with 2 billion batteries and a lot of solar panels, the world could finally stop using fossil fuels to generate electricity altogether. He added that microgrids and renewable energy could empower large segments of the world’s population who presently have no access to electric power. Musk has always been a champion of ” disruptive technology.” It doesn’t get much more disruptive than dismantling the electrical grid and making electric utilities obsolete.
Demand curve chart via CaliSO
Tesla Energy has introduced the Powerwall Lease in conjunction with Tesla Electric, making the service available in Texas. This new option delivers whole-home backup power using two Powerwall units for a net monthly cost of $35 after credits, accompanied by a low fixed electricity rate.
Under the lease terms, customers pay a one-time order fee of $100. The base lease payment for the two Powerwalls is approximately $122 per month during the first year, subject to a 3 percent annual escalator thereafter. Enrollment in a qualifying Tesla Electric Backup plan or Virtual Power Plant plan provides an $87 monthly credit.
Powerwall Lease is now available with Tesla Electric in Texas
Whole-home backup for $35/month, with a low fixed electricity rate
– Two Powerwalls, $0 installation
– Storm Watch outage protection
– One app to manage it all pic.twitter.com/oTzqc6K3aF— Tesla Energy (@teslaenergy) August 13, 2026
This credit lowers the effective cost to roughly $35 per month plus applicable tax.
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Installation of the standard system carries no additional charge. The package features Storm Watch for outage protection and allows complete management through a single Tesla application. The system supplies continuous whole-home backup capability.
The Powerwall system enables households to maintain electricity during severe storms that disrupt the utility grid. When outages occur, the batteries automatically provide seamless backup power to the home.
Tesla announces 100k Powerwalls are participating in Virtual Power Plants
Tesla Storm Watch monitors weather forecasts and ensures the units are fully charged ahead of anticipated severe weather events so that power remains available throughout the disruption, keeping lights, refrigeration, and other essential systems operating without interruption.
Availability is restricted to select Texas locations where retail electric choice exists. Participants must lease exactly two Powerwall units and maintain continuous enrollment with Tesla Electric. Solar panels cannot be included under this particular lease arrangement.
The monthly credit activates automatically once the system is installed, receives permission to operate, and enrollment is confirmed. To retain the credit, customers are required to stay enrolled in Tesla Electric and fulfill all program conditions.
Nonstandard installations that involve electrical upgrades or special permitting may lead to extra expenses and might impact eligibility for the credit, so be sure to check with either your installer or Tesla to ensure you will still qualify.
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Elon Musk
Inside Tesla’s secretive $10 Billion “Project Crystal Sun” filing
Tesla filed for a $10.1 billion Fort Bend solar factory, but the site isn’t confirmed.
Tesla has filed paperwork in Texas for a second massive manufacturing project in the same week it locked down its chip fabrication site, this time for a $10.1 billion solar cell plant in Fort Bend County. The filing, submitted July 22 under the state’s Jobs, Energy, Technology and Innovation Act and first surfaced by Sawyer Merritt on X, lists an internal project name of “Project Crystal Sun” and targets a site off FM 762 and FM 1994 near Richmond, about 40 minutes outside Houston.
Tesla is planning to build a $10.1 billion vertically integrated solar cell manufacturing facility in Fort Bend County, Texas, about 40 minutes from Houston, according to a new public application filing.
Tesla is aiming to start construction this year and finish in 2028, with… pic.twitter.com/f3HIK5HGST
— Sawyer Merritt (@SawyerMerritt) August 7, 2026
The application, prepared by Kroll Tax Services on Tesla’s behalf, spans five parcels totaling roughly 3,000 acres within the Lamar Consolidated Independent School District. Tesla wants a 10 year property tax limitation in exchange for the investment, split as $1.5 billion in real property and $8.6 billion in equipment and personal property. The company projects 9,712 permanent jobs once the plant reaches full operation, with 1,147 peak construction jobs during a build window running from this year through 2028 and commercial operations targeted for the first quarter of 2029.
Tesla is not fully committed to Fort Bend County yet. The filing states the company is weighing the site against an unnamed out of state alternative, and frames the tax abatement as what would make Texas competitive against that option. If the district and county decline the incentive, Tesla says it may build elsewhere.
Tesla Megapack Megafactory in Texas advances with major property sale
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The plant would handle the full solar cell production chain in one facility, according to the filing, covering wafer and ingot manufacturing, coating, metallization and printing lines, cell testing, automated material handling and cleanroom infrastructure. That scope points to Tesla vertically integrating a part of its supply chain it currently sources largely from overseas partners, mirroring the approach behind its expanding Megapack production in Brookshire, Texas, where Tesla has already built out two buildings for its grid battery business.
The timing lines up closely with Tesla and SpaceX’s other big Texas commitment this month. SpaceX confirmed its Terafab chip factory would land in Grimes County days before this filing surfaced, with construction on that $16.8 billion project starting almost immediately after local officials met with residents. Terafab is meant to produce the AI chips running Tesla’s Optimus robots and Full Self-Driving software, while a solar cell plant would feed a different part of the business, the panels and storage systems Tesla sells to homeowners, businesses and utilities, and increasingly needs to power its own data centers.
Musk has talked about building domestic solar manufacturing capacity before, tying it to the amount of power Tesla’s AI ambitions will require.
Tesla just trademarked ‘MEGAPOD’ with the United States Patent and Trademark Office (USPTO), its latest move in what seems to be a hint that the company is incredibly focused on its AI efforts and storage needs as compute increases.
The application carries serial number 99893717 and lists the applicant as Tesla, Inc., located at 1 Tesla Road, Austin, Texas 78725.
The filing remains in ‘live pending’ status, and it is a new application waiting for assignment to an examining attorney. It has not yet been published or registered.
Tesla just trademarked MEGAPOD
Summary:
“Modular data center hardware systems for artificial intelligence computing, comprised of computer servers, computer hardware for artificial intelligence processing, computer networking hardware, electrical power distribution units, and… pic.twitter.com/3l85DsKadl— Robin (@xdNiBoR) June 19, 2026
According to the official goods and services description in the application, Tesla describes ‘MEGAPOD’ as:
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“Modular data center hardware systems for artificial intelligence computing, comprised of computer servers, computer hardware for artificial intelligence processing, computer networking hardware, electrical power distribution units, and cooling systems, sold as a unit; self-contained modular computing hardware systems for artificial intelligence workloads; integrated computer hardware platforms for artificial intelligence computing, namely, enclosures containing computer hardware, power distribution hardware, and cooling hardware, sold as a unit; downloadable software for monitoring, managing, optimizing, and regulating modular artificial intelligence computing hardware systems.”
This description specifies complete, self-contained modular units that integrate servers and specialized AI processing hardware with networking components, power distribution, and cooling systems. It also includes associated downloadable software for oversight and optimization of these systems. The language emphasizes hardware sold “as a unit” and enclosures that combine the necessary elements for AI computing workloads.
Tesla has an established history of developing and commercializing modular hardware systems. Its Megapack product line, for example, consists of utility-scale battery energy storage systems designed as containerized units for grid applications. The MEGAPOD filing follows a similar pattern of protecting a name for modular, integrated hardware platforms, this time focused on artificial intelligence computing infrastructure.
This could be an early move, especially as Tesla did not have trademark rights to the word ‘Cybercab,’ the name of its self-driving, ride-hailing-focused vehicle.
Trademark applications of this type allow companies to secure priority rights to a name for defined categories of goods and services. The USPTO examines applications for compliance with legal requirements, including distinctiveness and absence of conflicts with prior marks. If the application proceeds successfully through examination, publication, and any opposition period, it could result in a federal trademark registration providing nationwide protection. This is what Tesla’s obvious intention is with ‘MEGAPOD.’
Public reports and analysis suggest MEGAPOD could represent modular, container-style AI computing pods designed for easy deployment. These would bundle servers, AI accelerators, power systems, and cooling into self-contained units suitable for distributed AI workloads. This approach aligns with Tesla’s announced AI compute strategy.
In March 2026, Elon Musk outlined plans for “Digital Optimus” (also referred to as Macrohard), a joint Tesla-xAI project for AI agents capable of handling complex digital tasks. The plans include running these agents on Tesla’s AI4 hardware in parked vehicles as well as dedicated compute units installed at Supercharger stations, which collectively offer substantial unused electrical capacity.
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What is Digital Optimus? The new Tesla and xAI project explained
A modular hardware platform like the one described in the ‘MEGAPOD’ filing would support scalable, rapid deployment of such distributed compute resources. It could complement Tesla’s other AI infrastructure efforts, including the Dojo supercomputer used for training models and the development of AI systems for autonomous driving and robotics, by enabling edge or regional AI inference without reliance on traditional centralized data centers.
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