Energy
Tesla Energy, battery storage broke new ground in 2018, and 2019 will be even better
Visionaries like Elon Musk, who are aiming for a world powered by sustainable energy, would be proud of the industry’s progress in 2018. Over the course of the year, investments flowed into research, the prices of batteries declined, governments across the globe supported clean energy solutions, and electric vehicles such as the Tesla Model 3 led the charge in transitioning the transportation sector away from fossil fuels.
A study from Bloomberg New Energy Finance has noted that in 2018, global annual energy storage more than doubled, reaching 9 GWh, and it is currently on pace to rise another 78% this year. In August 2018, the cumulative sales of electric cars passed the 4 million mark as well, and NEF analysts expect the EV industry to surpass 5 million in sales in the first quarter of 2019. Even in the United States, where companies like Tesla are struggling to meet the demand for their residential energy products, deployments on a rated-power basis across the country rose 57% to an estimated 338 KW after three years of flat to negative growth.
At the core of all this growth are the advancements in battery technology. Producers of batteries have ramped their operations to meet increasing demand, from China’s BYD Co. Ltd. to South Korea’s LG Chem to Japan’s Panasonic Corp. and its US partner Tesla. Benchmark Mineral Intelligence notes that by 2028, the combined manufacturing capacity of these battery producers would likely reach at least 1,330 GWh. That’s about ten times greater than the entire’s industry’s total capacity entering 2018.
In an email to S&P Global Market Intelligence, Simon Moores, managing director of Benchmark Mineral Intelligence, mentioned that the scale of recent battery projects signifies a change in the market. Moores also pointed out that while the emergence of electric cars is notable, the rise of energy storage has been impressive as well.
“When you see projects now being planned at over 1 GWh in scale, when only 18 months ago a 300-MWh installation was something to behold, you know you have entered a new era. It has been quite interesting to watch the battery makers’ dilemma of where to send the lithium-ion cells. Of course, they have contracts to honor with automotive producers, but the order inquiries from [energy storage] producers have been incredible,” Moores said.
One thing that is working in favor of renewables today is the falling prices of batteries and clean energy as a whole. Tom Buttgenbach, president and CEO of developer 8minutenergy Renewables LLC, described this in a statement to S&P Global Market Intelligence.
“I can beat a gas peaker anywhere in the country today with a solar-plus-storage power plant. Who in their right mind today would build a new gas peaker? We are a factor of two cheaper,” he said.
Buttgenbach’s statements echo the words of Tesla Chief Technology Officer JB Straubel, who noted last year that the age of fossil fuel powered peaker plants is at an end. Speaking to the San Francisco Chronicle, Straubel stated that batteries, even at their current state, are already starting to prove themselves as superior to conventional energy solutions.
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“I think what we’ll see is we won’t build many new peaker plants, if any. Already what we’re seeing happening is the number of new ones being commissioned is drastically lower, and batteries are already outcompeting natural gas peaker plants,” the Tesla CTO said.
While the progress of batteries has been impressive, though, Logan Goldie-Scot, head of energy storage at Bloomberg NEF, has stated that the past year exhibited uneven growth among different regions across the globe. South Korea, for one, saw a rise in energy deployments, while territories like the United Kingdom took a step back. In the United States, extreme demand such as those faced by Tesla Energy for products like the Powerwall 2 also caused delays in installations. Yet, despite these, Goldie-Scot stated that 2018 was a turning point for energy storage nonetheless.
“Even though progress was uneven, there was a much greater consensus in 2018 over the importance of energy storage, even in the near term, in major markets. In 2017, there were still a lot of people talking about how energy storage was not necessarily a competitive solution and was going to be limited. I hear those conversations much less now. Energy storage is now becoming more integrated into resource plans,” she said.
Amidst this transition, companies such as Tesla are taking the battle to heart. Last November, for example, Tesla opened the doors of Gigafactory 2 in Buffalo, NY to select members of the media. During the media visit, Tesla noted that it is aiming to ramp operations in the site with more hires, and that the 1.2-million sq ft facility is already running 24/7, with employees alternating 12-hour shifts. Tesla’s Gigafactory 2 is expected to play a huge role in the company’s energy business, considering that it is the site where the Solar Roof tiles, the company’s flagship solar product, are being manufactured.
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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