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Tesla pushes battery improvements amid renewable energy’s attack on coal

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In the spirit of constant innovation, Tesla’s batteries and energy storage products continue to see improvements over time. From improving energy density to more efficiencies in manufacturing, Tesla’s energy products are evolving just as fast as the company’s electric cars. Such improvements were teased by Tesla President of Automotive Jerome Guillen. In a recent interview with CNBC, Guillen remarked that the company’s batteries are always dynamic, and are in a constant process of improvement.

“We are improving the design of the cell. The design of the cell is not frozen. It evolves, and we have a nice roadmap of technology improvements for the coming years,” Guillen said

Tesla’s upcoming ramp of its energy products is coming at the perfect time. Amidst Tesla’s push to increase the production of its energy products, as well as the company’s efforts to achieve $100 per kWh in battery cell costs, the renewable energy market itself is also making huge strides.

The results of a recent analysis from research firm Lazard has revealed that wind and solar energy costs in the United States have finally reached a point where they are becoming more and more competitive with traditional power sources, such as those derived from coal. And that’s without tax subsidies. With subsidies in the picture, the cost advantages of renewable energy over coal are even more notable.

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Lazard’s levelized cost of energy (LCOE) analysis concluded that US onshore wind energy costs now average between $26/MWh and $56/MWh without subsidies. Solar energy, on the other hand, averages around $36/MWh and $44/MWh with no subsidies involved. In comparison, the average cost of US existing coal plants is between $27/MWh and $45/MWh.

With such competitive costs, renewable energy is currently challenging coal generation. And the movement is spreading — in the Upper Midwest, Xcel Energy’s utilities have revealed plans to retire about 50% of their coal-fired capacity in the coming years. To replace these facilities, Xcel is looking to wind energy. In a statement to Utility Drive, Xcel CEO Ben Fowke stated that the lowering price of sustainable energy is a large factor for the company’s push towards wind power.

“We’re looking at [wind energy prices] in the low teens to low 20s [in dollars/MWh] — not starting prices, but levelized across the 25-year life of the project. That beats gas, even at today’s prices,” he said.

Considering that wind and solar power are not ever-present, though, the key to a shift to sustainability lies in solutions such as industry-grade battery storage systems, which are capable of storing and distributing energy. This is where Tesla Energy comes in. In a statement to the San Francisco Chronicle back in September, Tesla CTO JB Straubel noted that grid-scale battery solutions such as Tesla’s Powerpacks, which are easily scaled and are reliable, are starting to become an ideal alternative to fossil fuel-powered 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,” Straubel said.

Such changes are becoming more notable in the United States. Just recently, the state of California announced that it had approved PG&E’s proposal to build a record-breaking 2.2 GWh battery storage project to replace three gas-powered plants. In South Dakota, BP plc has also installed a Tesla battery storage system in at one of its wind energy farms. While BP’s 212 KW/840 kWh battery storage system is not as large-scale as the recently announced CA project, the company has noted that the installation could be expanded in the future.

Wood Mackenzie, a research firm, estimates that the world’s shift from fossil fuels to renewables could happen as early as 2035. At this time, the company expects electric cars, wind power, and solar power to be more prevalent than gasoline and diesel-powered vehicles, as well as fossil fuel-based electricity. Wood Mackenzie notes that the shift towards renewables will hit a tipping point when EVs and clean energy solutions achieve a 20% market share. With this in mind, Tesla’s ramp of its energy business could not come faster.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Energy

Tesla launches Cybertruck vehicle-to-grid program in Texas

The initiative was announced by the official Tesla Energy account on social media platform X.

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Credit: Tesla

Tesla has launched a vehicle-to-grid (V2G) program in Texas, allowing eligible Cybertruck owners to send energy back to the grid during high-demand events and receive compensation on their utility bills. 

The initiative, dubbed Powershare Grid Support, was announced by the official Tesla Energy account on social media platform X.

Texas’ Cybertruck V2G program

In its post on X, Tesla Energy confirmed that vehicle-to-grid functionality is “coming soon,” starting with select Texas markets. Under the new Powershare Grid Support program, owners of the Cybertruck equipped with Powershare home backup hardware can opt in through the Tesla app and participate in short-notice grid stress events.

During these events, the Cybertruck automatically discharges excess energy back to the grid, supporting local utilities such as CenterPoint Energy and Oncor. In return, participants receive compensation in the form of bill credits. Tesla noted that the program is currently invitation-only as part of an early adopter rollout.

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The launch builds on the Cybertruck’s existing Powershare capability, which allows the vehicle to provide up to 11.5 kW of power for home backup. Tesla added that the program is expected to expand to California next, with eligibility tied to utilities such as PG&E, SCE, and SDG&E.

Powershare Grid Support

To participate in Texas, Cybertruck owners must live in areas served by CenterPoint Energy or Oncor, have Powershare equipment installed, enroll in the Tesla Electric Drive plan, and opt in through the Tesla app. Once enrolled, vehicles would be able to contribute power during high-demand events, helping stabilize the grid.

Tesla noted that events may occur with little notice, so participants are encouraged to keep their Cybertrucks plugged in when at home and to manage their discharge limits based on personal needs. Compensation varies depending on the electricity plan, similar to how Powerwall owners in some regions have earned substantial credits by participating in Virtual Power Plant (VPP) programs.

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Cybertruck

Tesla updates Cybertruck owners about key Powershare feature

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Credit: Tesla

Tesla is updating Cybertruck owners on its timeline of a massive feature that has yet to ship: Powershare with Powerwall.

Powershare is a bidirectional charging feature exclusive to Cybertruck, which allows the vehicle’s battery to act as a portable power source for homes, appliances, tools, other EVs, and more. It was announced in late 2023 as part of Tesla’s push into vehicle-to-everything energy sharing, and acting as a giant portable charger is the main advantage, as it can provide backup power during outages.

Cybertruck’s Powershare system supports both vehicle-to-load (V2L) and vehicle-to-home (V2H), making it flexible and well-rounded for a variety of applications.

However, even though the feature was promised with Cybertruck, it has yet to be shipped to vehicles. Tesla communicated with owners through email recently regarding Powershare with Powerwall, which essentially has the pickup act as an extended battery.

Powerwall discharge would be prioritized before tapping into the truck’s larger pack.

However, Tesla is still working on getting the feature out to owners, an email said:

“We’re writing to let you know that the Powershare with Powerwall feature is still in development and is now scheduled for release in mid-2026. 

This new release date gives us additional time to design and test this feature, ensuring its ability to communicate and optimize energy sharing between your vehicle and many configurations and generations of Powerwall. We are also using this time to develop additional Powershare features that will help us continue to accelerate the world’s transition to sustainable energy.”

Owners have expressed some real disappointment in Tesla’s continuous delays in releasing the feature, as it was expected to be released by late 2024, but now has been pushed back several times to mid-2026, according to the email.

Foundation Series Cybertruck buyers paid extra, expecting the feature to be rolled out with their vehicle upon pickup.

Cybertruck’s Lead Engineer, Wes Morrill, even commented on the holdup:

He said that “it turned out to be much harder than anticipated to make powershare work seamlessly with existing Powerwalls through existing wall connectors. Two grid-forming devices need to negotiate who will form and who will follow, depending on the state of charge of each, and they need to do this without a network and through multiple generations of hardware, and test and validate this process through rigorous certifications to ensure grid safety.”

It’s nice to see the transparency, but it is justified for some Cybertruck owners to feel like they’ve been bait-and-switched.

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Energy

Tesla starts hiring efforts for Texas Megafactory

Tesla’s Brookshire site is expected to produce 10,000 Megapacks annually, equal to 40 gigawatt hours of energy storage.

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Tesla's Megapack Factory in Lathrop, CA (Credit: Tesla)

Tesla has officially begun hiring for its new $200 million Megafactory in Brookshire, Texas, a manufacturing hub expected to employ 1,500 people by 2028. The facility, which will build Tesla’s grid-scale Megapack batteries, is part of the company’s growing energy storage footprint. 

Tesla’s hiring efforts for the Texas Megafactory are hinted at by the job openings currently active on the company’s Careers website.

Tesla’s Texas Megafactory

Tesla’s Brookshire site is expected to produce 10,000 Megapacks annually, equal to 40 gigawatt hours of energy storage, similar to the Lathrop Megafactory in California. Tesla’s Careers website currently lists over 30 job openings for the site, from engineers, welders, and project managers. Each of the openings is listed for Brookshire, Texas.

The company has leased two buildings in Empire West Business Park, with over $194 million in combined property and equipment investment. Tesla’s agreement with Waller County includes a 60% property tax abatement, contingent on meeting employment benchmarks: 375 jobs by 2026, 750 by 2027, and 1,500 by 2028, as noted in a report from the Houston Business Journal. Tesla is required to employ at least 1,500 workers in the facility through the rest of the 10-year abatement period. 

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Tesla’s clean energy boom

City officials have stated that Tesla’s arrival marks a turning point for the Texas city, as it highlights a shift from logistics to advanced clean energy manufacturing. Ramiro Bautista from Brookshire’s economic development office, highlighted this in a comment to the Journal

“(Tesla) has great-paying jobs. Not just that, but the advanced manufacturing (and) clean energy is coming to the area,” he said. “So it’s not just your normal logistics manufacturing. This is advanced manufacturing coming to this area, and this brings a different type of job and investment into the local economy.”

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