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Tesla Energy’s quick installs hint at ongoing residential solar and Powerwall ramp

A Tesla Solar and Powerwall 2 installation at Santa Rosa, CA. (Photo: Nick Wood)

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It appears that Tesla Energy’s highly-anticipated ramp is picking up some speed. With Model 3 production humming at levels that allow the company to begin distributing the all-electric sedans to international markets, the company seems to be intent in gaining back some momentum in the United States’ residential solar market, a segment that was, at one point, dominated by SolarCity. 

Tesla Model 3 owner Nick Wood and his family had been looking to add solar panels and a home battery system to their house in Santa Rosa, CA. The home had been affected by the 2017 wildfires, and PGE had advised residents in the area that there will be power interruptions during windy, dry conditions. With the family being all-in on electric vehicles — a Tesla Model 3 and two Chevy Bolts under a lease — the Woods needed a way to achieve power independence from the grid. 

The family filed applications for two projects: one for their main house with about 40 kW of solar panels and five Powerwall units, and another for a second house with 8.2 kW of solar and two Powerwalls. Both applications were filed around June 10. Following a site visit and once the loan terms and other financials of the project were approved, Tesla informed the family that the first Powerwall and solar panels were set to be installed on July 2. That was just over three weeks since the system was ordered. 

The Tesla installers arrived at around 9 a.m. on the day of the installation. The team worked simultaneously, with some working on trenches for the system’s power connections, others setting up the Powerwalls, and the rest installing the solar panels. Much to the Woods’ appreciation, the entire project was fully completed before the end of the day. The team even set up two electric car chargers at no extra cost. The Tesla team also gave the Woods their email addresses so that they could forward any pertinent information about the site to the installers of the main house’s upcoming 40 kW solar panels and five Powerwalls. 

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In a message to Teslarati, Nick Wood mentioned that the installers had been finishing around one Tesla Energy project per day. The installers also stated that they have been particularly busy as of late, with an appointment with a residential solar and/or Powerwall customer being scheduled daily. Quite notably, Wood stated that his family now has to wait around 1-5 weeks for the county inspection so that they can activate the system. That’s potentially longer than the time it took for the solar panels and Powerwalls to be ordered and installed. 

A Tesla Solar and Powerwall 2 installation at Santa Rosa, CA. (Photo: Nick Wood)

Granted, part of the reason behind the quick turnaround time of the Woods’ residential solar installation could be their location. Being in California, the family lives in a state that is heavily saturated by Tesla. Nevertheless, the efficiency exhibited by the installers, as well as the team’s mention of busy weeks filled with project after project, hints at a ramp in the company’s Energy initiatives. 

This bodes well for Tesla’s residential solar business, which has seen a decline since the company acquired SolarCity in 2016. Since SolarCity’s peak of commanding 32.6% of the US market in 2014, Tesla’s presence in the country’s residential solar segment as shrunk, hitting only 6.3% during Q1 2019. Nevertheless, hints of a potential ramp started emerging last year, when Tesla started dramatically reducing its customer acquisition costs by spending only $0.40 per watt to acquire customers. This is far lower than competitors such as Vivint, which has customer acquisition costs of $0.94 per watt, and Sunrun, whose costs run at $0.90 per watt. 

Tesla Energy is pretty much a sleeping giant for now. The business has so far been away from the spotlight, especially amidst the production ramp of the Model 3, but it has a lot of potential. Legendary investor Ron Baron, for one, has estimated that Tesla Energy on its own could be worth $500 billion. Elon Musk and the company’s executives, for their part, have noted that a ramp in Tesla Energy’s activities is underway, with the CEO stating during the unveiling of the Model Y that 2019 will be the “Year of the Solar Roof and Powerwall.”

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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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Google just picked SpaceX for its first step into orbital AI

Google will launch its first Project Suncatcher AI satellite on SpaceX’s Transporter-18 rideshare next week.

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Google is about to put its own AI chips into orbit for the first time, and it is paying SpaceX to get them there.

The company said Thursday that the first in-orbit test of Project Suncatcher, its research effort to find out whether space can host large-scale AI computing, will fly next week on SpaceX’s Transporter-18 rideshare mission.

The satellite, called MVP, is about the size of a refrigerator and carries four of Google’s Tensor Processing Units, the same chips Google runs in its ground data centers. Google originally planned to launch two custom satellites in 2027, but chose to move faster by integrating its chips into a satellite.

MVP’s solar panels supply about one kilowatt of power, and Google will run Gemini models on the TPUs only in bursts of roughly 15 minutes before the chips shut down so the radiators can shed heat. In a blog post, Google said its Trillium TPUs survived vibration testing that mimicked sustained launch loads of up to 10g, with individual components seeing 50 to 100g, and handled a radiation dose greater than a five year mission would deliver.

SpaceX and Google mull massive partnership on Musk’s orbital data dream: report

Next week’s flight, slated for October 1, follows a relationship that became public in May, when Teslarati reported that Google was in talks with SpaceX for a launch deal tied to orbital data centers. Google also holds a stake of roughly 6% in SpaceX.

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The two companies are chasing the same idea from very different starting points. SpaceX’s own orbital compute program is built around the AI1 satellite, a roughly 70 meter structure derived from Starlink V3 hardware that is designed for 150 kW of peak compute, about 150 times the power MVP will draw. Elon Musk has brushed off concerns about crowding orbit with those satellites, and SpaceX is building its Gigasat factory in Bastrop, Texas, to produce them, targeting an annualized rate of about 1 GW of space compute by the end of 2027.

Musk also posted on X on Thursday that “the amount of compute in space will obviously round up to 100% of all compute.”

Google has been more cautious in public. Its research estimates that launch prices need to fall below about $200 per kilogram before an orbital data center can compete with a ground facility on energy cost, a threshold the company believes could be reached around the mid 2030s. The Suncatcher team has said it expects the effort to remain a project rather than a product for years, which leaves the first real test of its hardware riding on a rocket from the company with the most aggressive timeline in the field.

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Energy

Tesla Semi factory is getting a celebration nobody expected

Tesla will inaugurate its Nevada Semi factory September 24, five months after production quietly began ramping.

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Tesla says it will officially inaugurate its new Semi factory in Nevada next month. The Tesla Semi account posted the announcement on X, sharing a graphic titled “Semi Rollout” with a date of September 24. No further details were given about the format of the event or who would attend.

While Tesla’s dedicated Semi plant in Sparks, adjacent to Gigafactory Nevada, opened back in April, with the first trucks rolling off the high volume line on April 29, the timing for the factory inauguration comes at a surprise. The ribbon cutting event five months into production is a break from how Tesla has usually handled its other factories, where the first truck or car off the line typically served as the milestone moment.

The 1.7 million square foot factory was built as part of a $3.6 billion expansion Tesla announced in early 2023, and it shares a site with the battery cell lines that feed the Semi’s structural pack, a decision meant to remove the supply bottleneck that delayed the truck for years. The plant is designed for 50,000 trucks a year at full ramp. Semi program director Dan Priestley has said production “is now ramping” rather than claiming it has reached scale.

Nine years passed between the Semi’s 2017 unveiling and this stage of production, with the truck slipping from an original 2019 target through hand built pilot units for PepsiCo and a slow build out of the Nevada plant. An inauguration event now gives Tesla a stage to talk up that ramp and reset expectations for how many trucks it can begin delivering at scale.

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The September date also lines up with the Semi’s next milestone. Tesla confirmed the truck is heading to Europe with a full unveiling at the IAA Transportation trade show in Hannover, Germany, running September 15 through 20. Between the Nevada event and the Hannover reveal, Tesla has roughly a week and a half in September to make the case that the Semi is now a truck being built and sold on two continents rather than tested in a handful of fleets.

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Energy

Tesla launches Powerwall Lease for affordable home backup

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Credit: Tesla

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.

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This credit lowers the effective cost to roughly $35 per month plus applicable tax.

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.

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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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