Tesla Energy tests the waters for possible expansion in Germany

Tesla's 100 MW/129 MWh Powerpack system dubbed as the 'World's largest battery' in Jamestown, Australia. (Credit: Tesla)

Tesla is reportedly looking to expand its line of clean energy products into the German market.

The electric automaker and clean energy generation and storage company is considering an entrance into the German electricity sector with a tariff that would save owners money while utilizing at-home EV charging points. Additionally, Tesla is surveying potential customers in the country to determine whether joining the German energy sector would be a worthwhile project, PV Magazine reported.

During the Q2 2020 Earnings Call, Tesla reported that its energy business was ramping well with its Megapack generating a profit for the first time. Storage deployments also increased to 419 MWh, as both Powerwall and Megapack deployments increased.

Tesla’s Solar deployments also tripled in Q2 compared to Q1, and the average system is available for $1.49 per watt, which is around one-third less expensive than the industry average.

With that, Tesla has focused on getting its energy business thriving outside of the United States. In June, the company obtained an electricity generation license in the United Kingdom, paving the way for the company to establish a virtual power plant in the region and provide residents in England, Northern Ireland, Scotland, and Wales with sustainable energy solutions.

Now, the company is turning its sights on Germany, where it is currently building a vehicle production plant near Berlin.

Tesla is scouting the possibility for an expansive energy business in Germany by using a questionnaire to prospective customers that includes several questions about the possible infrastructure.

Customers who received the questionnaire were asked which energy products they would consider buying. The options include Home Energy Storage products, Solar Panels, Tesla Wall Connector for Electric Vehicles, Access to a Public EV Charging Network, and the supply of clean energy.

It also asks how customers would prefer to pay, depending on their usage. This question reportedly included the options of a day-ahead hourly-variable price per kWh. Tesla also asked in the survey what elements of EV charging would customers be willing to surrender to the company to improve energy usage. The question brings up speculation that grid balancing benefits that would prevent energy-wasting and enhance the cost-effectiveness of the energy system across the board.

Finally, Tesla included Grid ancillary service questions in the poll.

“Suppose your car is charged every morning to meet your daily needs. Under what conditions would you allow Tesla to control the charging time of your car so that it is charged for your daily needs and to offer you a cheaper electricity tariff?”

Possible answers included, “If there is a clear financial advantage for me,” “If there are other advantages such as free or cheaper charging at home or no public charging stations,” and “If it helps to increase the share of renewable energies in the energy mix.”

Tesla’s ultimate decision on whether the energy side should expand to Germany will ultimately come down to customer interest in the country’s market. Tesla will be competing with Greenpeace Energy, EWS Schönau, Lichtblick, Polarstern, E.ON, and others if the company decides to join the market.

Tesla Energy tests the waters for possible expansion in Germany
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