Energy
Tesla smart HVAC systems gain potential market with Australia’s ~AU$800M energy initiative in Victoria
Victoria’s comprehensive ~AU$800 million home energy package may lead to a potential market for Tesla’s HVAC system in Australia. Elon Musk has shown particular interest in Tesla developing an integrated home HVAC system, mentioning the product as far back as his initial appearance at the Joe Rogan Experience podcast in 2018. Victoria may have just made an investment that could provide a potential market for Tesla’s integrated HVAC system.
Recently, Energy minister Lily D’Ambrosio announced that the Andrews Ministry will invest approximately AU$797 million in a home energy savings package. The initiative means to encourage the shift to more smart energy efficient appliances and integrated home systems in households, rental properties, and businesses in Victoria.
Some parts of the initiative could make Victoria a good market for Tesla’s integrated HVAC system in the future. According to Renew Economy, the Ministry plans to invest AU$335 million to help low income earners replace old wood and electric or gas-fired heaters in their homes. The small renovation could save over 250,000 households AU$300 to AU$900 in their power bills. Another AU$112 million will be invested to seal windows/doors, as well as upgrade heating/cooling systems, and hot water systems in 35,000 social housing properties.
We will make super efficient home hvac with hepa filters one day
— Elon Musk (@elonmusk) September 11, 2020
In the Q2 earnings call, Tesla’s Senior VP of Powertrain and Energy Engineering and Technology Drew Baglino said the company learned to build a tightly integrated system thanks to the Model Y and Model 3 heat pump. He said that the system was capable of moving heat “anywhere really” and it was applicable to heating and cooling needs in a home.
Elon Musk elaborated on the subject. “Yes. Absolutely. I think like the heat—for heat pump in the car, being able to use the batteries both as a thermal and an electric energy reservoir is very significant. Same thing could be applied to a home with the water heater, and the back of pack itself, of course.
“So I think there’s potential for an integrated home system that kind of does power generation/storage, heating/cooling, air filtration, water purification in a really tight package. We don’t actually have like a prototype or anything, but I think conceptually, that is something that would be probably good to have,” he said.
2/3: Today’s announcement includes 42,000 rebates for rooftop solar over the next two years, plus 15,000 new rebates available for small businesses and 17,500 battery rebates will be available over the next three years.
— Clean Energy Council (@cleannrgcouncil) November 17, 2020
Other Opportunities for Tesla in Victoria
As Musk mentioned during the Q2 earnings call, Tesla doesn’t have a prototype of its potential integrated home HVAC system yet. So it may be a while before Tesla can take advantage of the market Victoria could offer for that particular product.
However, there are other ways Tesla could benefit from Victoria’s almost ~AU$800M home energy initiative.
Besides the millions on improving home integrated systems, the Victorian government’s investments could encourage more households and small businesses to install solar panels and use home batteries like Tesla’s Powerwall 2.
Part of the initiative includes investing $191 million to a Solar Homes Program over the next two years. It will offer 42,000 rebates to help over 140,000 households install solar panels on their roofs with no upfront costs. There will also be 15,000 rebates open to small businesses interested in installing solar panels.
Tesla’s solar panels might be a good fit for Victoria’s Solar Homes Program. The company’s Solar Roof V3 product has not been released in Australia yet, but it might be another good option for homeowners as well, if it is covered by the program’s rebates.
Tesla Energy is setting its sights on another market that’s ready for a battery storage disruption
Tesla’s Powerwall sales could also improve under Victoria’s energy initiative. The local government will be releasing 17,500 rebates to install home batteries over the next three years. Previously, home battery rebates were restricted to certain post codes, but the initiative seems to open up the rebates to all corners of Victoria.
With that in mind, Powerwalls could lead to pockets of virtual power plants in the state. Virtual power plants in Victoria would compliment Neoen and Tesla’s massive 300 MW/450MWh energy storage project in the state which will be operational by around Summer 2021-2022.
Elon Musk
Tesla named by U.S. Gov. in $4.3B battery deal for American-made cells
What began as an open secret in the energy industry was confirmed by the U.S. Department of the Interior on Monday: Tesla is the buyer behind LG Energy Solution’s blockbuster $4.3 billion battery supply agreement.
What began as an open secret in the energy industry is becoming more real after the U.S. Department of the Interior named Tesla as the stakeholder in the LG Energy Solution’s blockbuster $4.3 billion battery supply agreement.
Tesla and LG Energy Solution are expanding their partnership to build a LFP prismatic battery cell manufacturing facility in Lansing, Michigan, launching production in 2027. The announcement, made as part of the Indo-Pacific Energy Security Summit results, ends months of speculation.
“American-made cells will power Tesla’s Megapack 3 energy storage systems produced in Houston, creating a robust domestic battery supply chain.”, notes a press release on the U.S. Department of the Interior website.
Tesla has long utilized China’s Contemporary Amperex Technology Co. (CATL), the world’s largest LFP battery maker, as one of its primary suppliers. That relationship made financial sense for years, considering that Chinese LFP cells were cheap, abundant, and reliable. But with escalated tariffs on Chinese imports and an increasingly growing Tesla Energy business that’s particularly reliant on LFP cells for products including its Megapack battery storage units designed for utilities and large-scale commercial projects.
The announcement of a deepened partnership between LG Energy Solution and Tesla has strategic logic for both parties. For Tesla, it secures a tariff-compliant, domestically produced battery supply for its fast-growing energy division. LGES, now producing LFP batteries in Michigan, becomes the only major supplier currently scaling U.S. production, outpacing rivals like Samsung SDI and SK On. LG Energy Solution’s Lansing plant, formerly known as Ultium Cells 3, was previously operated as a joint venture with General Motors. LGES acquired GM’s stake in May 2025 and now fully owns the site, with a production capacity of 50 GWh per year. LG Energy said the contract includes options to extend the supply period by up to seven years and boost volumes based on further consultations.
For the broader industry, the ripple effects are significant. This deal signals that domestic battery manufacturing can be financially viable and not just aspirational. Utilities, energy developers, and rival automakers will take note as American-made LFP supply becomes a competitive reality rather than a distant promise.
For consumers, the benefits will take time but are real. A more resilient, U.S.-based supply chain means fewer price shocks from trade disputes, more stable Megapack availability for the grid storage projects that reduce electricity costs, and long-term downward pressure on energy storage prices as domestic production scales.
Deliveries are set to begin in 2027 and run through mid-2030, and as grid storage demand accelerates, reliable, US-made battery supply is no longer a future ambition. It is becoming a core requirement of the country’s energy strategy.
Energy
Tesla Energy gains UK license to sell electricity to homes and businesses
The license was granted to Tesla Energy Ventures Ltd. by UK energy regulator Ofgem after a seven-month review process.
Tesla Energy has received a license to supply electricity in the United Kingdom, opening the door for the company to serve homes and businesses in the country.
The license was granted to Tesla Energy Ventures Ltd. by UK energy regulator Ofgem after a seven-month review process.
According to Ofgem, the license took effect at 6 p.m. local time on Wednesday and applies to Great Britain.
The approval allows Tesla’s energy business to sell electricity directly to customers in the region, as noted in a Bloomberg News report.
Tesla has already expanded similar services in the United States. In Texas, the company offers electricity plans that allow Tesla owners to charge their vehicles at a lower cost while also feeding excess electricity back into the grid.
Tesla already has a sizable presence in the UK market. According to price comparison website U-switch, there are more than 250,000 Tesla electric vehicles in the country and thousands of Tesla home energy storage systems.
Ofgem also noted that Tesla Motors Ltd., a separate entity incorporated in England and Wales, received an electricity generation license in June 2020.
The new UK license arrives as Tesla continues expanding its global energy business.
Last year, Tesla Energy retained the top position in the global battery energy storage system (BESS) integrator market for the second consecutive year. According to Wood Mackenzie’s latest rankings, Tesla held about 15% of global market share in 2024.
The company also maintained a dominant position in North America, where it captured roughly 39% market share in the region.
At the same time, competition in the energy storage sector is increasing. Chinese companies such as Sungrow have been expanding their presence globally, particularly in Europe.
Energy
Tesla Powerwall distribution expands in Australia
Inventory is expected to arrive in late February and official sales are expected to start mid-March 2026.
Supply Partners Group has secured a distribution agreement for the Tesla Powerwall in Australia, with inventory expected to arrive in late February and official sales beginning in mid-March 2026.
Under the new agreement, Supply Partners will distribute Tesla Powerwall units and related accessories across its national footprint, as noted in an ecogeneration report. The company said the addition strengthens its position as a distributor focused on premium, established brands.
“We are proud to officially welcome Tesla Powerwall into the Supply Partners portfolio,” Lliam Ricketts, Co-Founder and Director of Innovation at Supply Partners Group, stated.
“Tesla sets a high bar, and we’ve worked hard to earn the opportunity to represent a brand that customers actively ask for. This partnership reflects the strength of our logistics, technical services and customer experience, and it’s a win for installers who want premium options they can trust.”
Supply Partners noted that initial Tesla Powerwall stock will be warehoused locally before full commercial rollout in March. The distributor stated that the timing aligns with renewed growth momentum for the Powerwall, supported by competitive installer pricing, consumer rebates, and continued product and software updates.
“Powerwall is already a category-defining product, and what’s ahead makes it even more compelling,” Ricketts stated. “As pricing sharpens and capability expands, we see a clear runway for installers to confidently spec Powerwall for premium residential installs, backed by Supply Partners’ national distribution footprint and service model.”
Supply Partners noted that a joint go-to-market launch is planned, including Tesla-led training for its sales and technical teams to support installers during the home battery system’s domestic rollout.
Tesla named by U.S. Gov. in $4.3B battery deal for American-made cells
Tesla plans for largest Australian Supercharger yet
