Energy
UK energy storage startup takes on Tesla Powerwall 2 in home battery market

Tesla, Inc.’s CEO Elon Musk has made his company’s mission to help the world to transition away from reliance on fossil fuels and toward the embrace of sustainable energy sources. Now a U.K. energy-storage startup called Powervault is now in competition with Tesla, Inc. to outfit homes with affordable backup battery power across the pond.
Why is solar power and storage the key to the world’s energy independence?
Solar photovoltaic (PV) power generation is at the heart of a transformation that will revolutionize the world’s electricity systems, letting consumers produce power for their own needs and feed surplus energy into the grid. Solar power is becoming ubiquitous: from large-scale utilities to micro-grids; from billion-dollar corporate HQs to rural rooftops; and from urban sprawl areas to small islands and isolated communities. We see solar next to airports, along highways, in fields, powering road signs, even at local small businesses like breweries.
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Energy storage is an essential link needed to make intermittent solar energy reliable. Batteries installed inside homes can store excess energy produced by panels during peak hours of operation. When combined with smart meters and digital technologies, batteries can help utilities regulate the grid by providing power reserves which can be tapped and transmitted on demand.
As prices have dropped, solar PV generation uptake by households and local communities has increased dramatically. In 2015, around 30% of solar PV capacity installed worldwide involved systems of of less than 100 kW. This is gradually changing the face of power system ownership. Two companies — U.K.’s Powervault and the U.S. Tesla — are helping consumers to make the shift to solar installations combined with battery energy storage and a chance at energy independence.
Powervault
Founded in 2012 with money from the U.K. government and private investors, Powervault has made a mission of reducing the cost of batteries in order to make them affordable to more homes. Powervault stores electricity in a home using either Lithium-ion Phosphate cells or Lead Acid batteries.
Powervault’s Lead Acid version is for customers who want a product with a low up-front cost and the prospect of upgrading to Lithium-ion technology when their Lead Acid batteries reach the end of their useful life in three to seven years. With Lithium-ion technology forecast to fall dramatically in cost over the next five years, customers can benefit from a low-cost Powervault using Lead Acid batteries now, then replace its batteries later. A Powervault lead battery that can store 3 kWh of power sells for 2,500 pounds ($3,117) a unit, or, about $1,039 for each kWh of electricity stored. That price is about 12 percent cheaper than the $1,175/kWh average price in the industry, according to Bloomberg New Energy Finance.
Powervault’s Lithium-ion Phosphate cells can store 2kWh – 6kWh of usable (AC) energy. Powervault’s Lithium-ion version is for customers who want a product with battery technology that is long-lasting and efficient; the Lithium-ion Phosphate cells are estimated to have a lifetime of eleven to thirteen years and can cycle more than once per day.
Depending on the battery technology and storage capacity a homeowner requires, the dimensions of the Powervault unit vary. The standard G200 unit accommodates all available battery capacities and technologies; the slim-line, G200-S unit , available starting in March, 2017 will only accommodate 2kWh or 4kWh of Lithium-ion Phosphate cells.
The company anticipates prices for Powervault’s batteries, which can cover about half an average British home’s daily power consumption, will be even cheaper going forward. Powervault is planning to expand internationally in the next few years with an initial focus on Europe, according to Powervault’s Managing Director Joe Warren, who said some units have already been sold in Spain. “We’ve been very careful to design them to be universally compatible. We want them to be easy to install and use everywhere in the world.”
Tesla Powerwall 2
Powerwall 2 stories are becoming commonplace, in which a consumer captures energy during daylight off-peak hours with SolarCity photovoltaic solar panels stored in a Powerwall home battery unit. When energy rates are higher during evening hours, the consumer powers the home with energy stored captured earlier in the day.

Artists rendition of a Red Founders Series Tesla Powerwall 2.0 hand signed by Elon Musk
Powerwall uses an internal inverter to convert DC energy to the AC energy required for a home or small business. A liquid thermal control system regulates Powerwall’s internal temperature to maximize battery performance in any climate. The most affordable home battery in terms of cost per kWh, the company argues that the Powerwall economically meets the daily energy needs of most homes. With usable capacity of 13.5 kWh, the Powerwall system has a 100% depth of discharge and 7kW peak / 5kW continuous power. Floor or wall mounted, indoor or outdoor, the Powerwall has a ten year warranty and is scalable up to nine Powerwalls. Its operating temperature ranges from -4° to 122°F / -20°C to 50°C. The system is certified to meet North American and international standards.
One 14 kWh Powerwall battery costs $5,500, with installation and supporting hardware adding $1,500, or a total estimate $7,000. U.S. installations are beginning in February, 2017, according to company data.
There’s no doubt Elon Musk sees solar as the future for electricity generation, just as he views electric cars as the future of transportation. “The primary means of energy generation is going to solar,” he said in 2015 prior to the merger with SolarCity, in which the issue of utility-based versus independent energy generation still seemed futuristic. “It will at least be a plurality, and probably be a slight majority in the long term.”
The forecast for solar in the U.K. and U.S.
The London-based Powervault company is targeting sales of 50,000 units a year by 2020, up from about 1,000 this year. Powervault is entering the home storage market just as Tesla is readying its Nevada-based Gigafactory for Model 3 production. Musk expects the plant will double the global production of lithium-ion batteries next year, so that, by 2018, the Gigafactory will reach full capacity and produce more lithium ion batteries annually than were produced worldwide in 2013.
Solar PV deployment at the consumer level alongside battery storage is putting pressure on network operators and the way national electricity systems are traditionally managed and governed. This is brought about by new developments in electricity storage, electric, vehicles and smart appliances. Solar PV already accounts for about 2% of global electricity in 2016, but could reach as much as 13% by 2030. In order for this to happen, solar PV capacity additions must double in 14 years, with Tesla leading the way and companies like Powervault joining the march.
Interested in solar? Get a solar cost estimate and find out how much a solar system would cost for your home or business.
Energy
Tesla Megapacks powers the xAI Colossus supercomputer
Tesla Megapacks step in to stabilize xAI’s Colossus supercomputer, replacing natural gas turbines. Musk’s ventures keep intertwining.

Tesla Megapack batteries will power the xAI Colossus supercomputer in Memphis to ensure power stability. The collaboration between Tesla and xAI highlights the synergy among Elon Musk’s ventures.
The artificial intelligence startup has integrated Tesla Megapacks to manage outages and demand surges, bolstering the facility’s reliability. The Greater Memphis Chamber announced that Colossus, recently connected to a new 150-megawatt electric substation, is completing its first construction phase. This transition addresses criticism from environmental justice groups over the initial use of natural gas turbines.
“The temporary natural gas turbines that were being used to power the Phase I GPUs prior to grid connection are now being demobilized and will be removed from the site over the next two months.
“About half of the operating turbines will remain operating to power Phase II GPUs of xAI until a second substation (#22) already in construction is completed and connected to the electric grid, which is planned for the Fall of 2025, at which time the remaining turbines will be relegated to a backup power role,” the Chamber stated.
xAI’s rapid development of Colossus reflects its ambition to advance AI capabilities, but the project has faced scrutiny for environmental impacts. The shift to Megapacks and grid power aims to mitigate these concerns while ensuring operational continuity.
The Megapack deployment underscores the collaboration among Musk’s companies, including Tesla, SpaceX, Neuralink, and The Boring Company. Tesla appears to be the common link between all of Musk’s companies. For example, The Boring Company built a tunnel in Giga, Texas. In addition, Musk has hinted at a potential collaboration between the Tesla Optimus Bot and Neuralink. And from January 2024 to February 2025, xAI invested $230 million in Megapacks, per a Tesla filing.
Tesla Energy reported a 156% year-over-year increase in Q1 2025, deploying 10.4 GWh of storage products, including Megapacks and Powerwalls. Tesla’s plans for a new Megapack factory in Waller County, Texas, which is expected to create 1,500 jobs in the area, further signal its commitment to scaling energy solutions.
As xAI leverages Tesla’s Megapacks to power Colossus, the integration showcases Musk’s interconnected business ecosystem. The supercomputer’s enhanced stability positions xAI to drive AI innovation, while Tesla’s energy solutions gain prominence, setting the stage for broader technological and economic impacts.
Energy
Tesla Energy celebrates one decade of sustainability
Tesla Energy has gone far since its early days, and it is now becoming a progressively bigger part of the company.

Tesla Energy recently celebrated its 10th anniversary with a dedicated video showcasing several of its milestones over the past decade.
Tesla Energy has gone far since its early days, and it is now becoming a progressively bigger part of the company.
Tesla Energy Early Days
When Elon Musk launched Tesla Energy in 2015, he noted that the business is a fundamental transformation of how the world works. To start, Tesla Energy offered the Powerwall, a 7 kWh/10 kWh home battery system, and the Powerpack, a grid-capable 100 kWh battery block that is designed for scalability. A few days after the products’ launch, Musk noted that Tesla had received 38,000 reservations for the Powerwall and 2,500 reservations for the Powerpack.
Tesla Energy’s beginnings would herald its quiet growth, with the company later announcing products like the Solar Roof tile, which is yet to be ramped, and the successor to the Powerwall, the 13.5 kWh Powerwall 2. In recent years, Tesla Energy also launched its Powerwall 3 home battery and the massive Megapack, a 3.9 MWh monster of a battery unit that has become the backbone for energy storage systems across the globe.
Key Milestones
As noted by Tesla Energy in its recent video, it has now established facilities that allow the company to manufacture 20,000 units of the Megapack every year, which should help grow the 23 GWh worth of Megapacks that have already been deployed globally.
The Powerwall remains a desirable home battery as well, with more than 850,000 units installed worldwide. These translate to 12 GWh of residential entry storage delivered to date. Just like the Megapack, Tesla is also ramping its production of the Powerwall, allowing the division to grow even more.
Tesla Energy’s Role
While Tesla Energy does not catch as much headlines as the company’s electric vehicle businesses, its contributions to the company’s bottom line have been growing. In the first quarter of 2025 alone, Tesla Energy deployed 10.4 GWh of energy storage products. Powerwall deployments also crossed 1 GWh in one quarter for the first time. As per Tesla in its Q1 2025 Update Letter, the gross margin for the Energy division has improved sequentially as well.
Elon Musk
Tesla Energy shines with substantial YoY growth in deployments

Tesla Energy shined in what was a weak delivery report for the first quarter, as the company’s frequently-forgotten battery storage products performed extraordinarily well.
Tesla reported its Q1 production, delivery, and deployment figures for the first quarter of the year, and while many were less-than-excited about the automotive side, the Energy division performed well with 10.4 GWh of energy storage products deployed during the first quarter.
This was a 156 percent increase year-over-year and the company’s second-best quarter in terms of energy deployments to date. Only Q4 2024 was better, as 11 GWh was recorded.
Tesla Energy is frequently forgotten and not talked about enough. The company has continued to deploy massive energy storage projects across the globe, and as it recorded 31.5 GWh of deployments last year, 2025 is already looking as if it will be a record-setting year if it continues at this pace.
Tesla Megapacks to back one of Europe’s largest energy storage sites
Although Energy performed well, many investors are privy to that of the automotive division’s performance, which is where some concern lies. Tesla had a weak quarter for deliveries, missing Wall Street estimates by a considerable margin.
There are two very likely reasons as to why this happened: the first is Tesla’s switchover to the new Model Y at its production facilities across the globe. Tesla said it lost “several weeks” of production due to the updating of manufacturing lines as it rolled out a new version of its all-electric crossover.
Secondly, Tesla could be facing some pressure from pushback against the brand, which is what many analysts will say. Despite the publicity of attacks on Tesla drivers and their vehicles, as well as the company’s showrooms, it would be safe to assume that we will have a better picture painted of what the issue is in Q2 after the company reports numbers in July.
If Tesla is still struggling with lackluster delivery figures in Q2 after the Model Y is ramped and deliveries are more predictable and consistent, we could see where the argument for brand damage is legitimate. However, we are more prone to believe the Model Y, which accounts for most of Tesla’s sales, and its production ramp is likely the cause for what happened in Q1.
In what was a relatively bleak quarter, Tesla Energy still shines as the bright spot for the quarter.
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