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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. 

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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. 

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. 

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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.”

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 Energy is the world’s top global battery storage system provider again

Tesla Energy captured 15% of the battery storage segment’s global market share in 2024.

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Credit: Tesla

Tesla Energy held its top position in the global battery energy storage system (BESS) integrator market for the second consecutive year, capturing 15% of global market share in 2024, as per Wood Mackenzie’s latest rankings.

Tesla Energy’s lead, however, is shrinking, as Chinese competitors like Sungrow are steadily increasing their global footprint, particularly in European markets.

Tesla Energy dominates in North America, but its lead is narrowing globally

Tesla Energy retained its leadership in the North American market with a commanding 39% share in 2024. Sungrow, though still ranked second in the region, saw its share drop from 17% to 10%. Powin took third place, even if the company itself filed for bankruptcy earlier this year, as noted in a Solar Power World report. 

On the global stage, Tesla Energy’s lead over Sungrow shrank from four points in 2023 to just one in 2024, indicating intensifying competition. Chinese firm CRRC came in third worldwide with an 8% share.

Wood Mackenzie ranked vendors based on MWh shipments with recognized revenue in 2024. According to analyst Kevin Shang, “Competition among established BESS integrators remains incredibly intense. Seven of the top 10 vendors last year struggled to expand their market share, remaining either unchanged or declining.”

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Chinese integrators surge in Europe, falter in U.S.

China’s influence on the BESS market continues to grow, with seven of the global top 10 BESS integrators now headquartered in the country. Chinese companies saw a 67% year-over-year increase in European market share, and four of the top 10 BESS vendors in Europe are now based in China. In contrast, Chinese companies’ market share in North America dropped more than 30%, from 23% to 16% amid Tesla Energy’s momentum and the Trump administration’s policies.

Wood Mackenzie noted that success in the global BESS space will hinge on companies’ ability to adapt to divergent regulations and geopolitical headwinds. “The global BESS integrator landscape is becoming increasingly complex, with regional trade policies and geopolitical tensions reshaping competitive dynamics,” Shang noted, pointing to Tesla’s maintained lead and the rapid ascent of Chinese rivals as signs of a shifting industry balance.

“While Tesla maintains its global leadership, the rapid rise of Chinese integrators in Europe and their dominance in emerging markets like the Middle East signals a fundamental shift in the industry. Success will increasingly depend on companies’ ability to navigate diverse regulatory environments, adapt to local market requirements, and maintain competitive cost structures across multiple regions,” the analyst added.

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Energy

Tesla inks multi-billion-dollar deal with LG Energy Solution to avoid tariff pressure

Tesla has reportedly secured a sizable partnership with LGES for LFP cells, and there’s an extra positive out of it.

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Credit: Tesla

Tesla has reportedly inked a multi-billion-dollar deal with LG Energy Solution in an effort to avoid tariff pressure and domesticate more of its supply chain.

Reuters is reporting that Tesla and LGES, a South Korean battery supplier of the automaker, signed a $4.3 billion deal for energy storage system batteries. The cells are going to be manufactured by LGES at its U.S. factory located in Michigan, the report indicates. The batteries will be the lithium iron phosphate, or LFP, chemistry.

Tesla delivers 384,000 vehicles in Q2 2025, deploys 9.6 GWh in energy storage

It is a move Tesla is making to avoid buying cells and parts from overseas as the Trump White House continues to use tariffs to prioritize domestic manufacturing.

LGES announced earlier today that it had signed a $4.3 billion contract to supply LFP cells over three years to a company, but it did not identify the customer, nor did the company state whether the batteries would be used in automotive or energy storage applications.

The deal is advantageous for both companies. Tesla is going to alleviate its reliance on battery cells that are built out of the country, so it’s going to be able to take some financial pressure off itself.

For LGES, the company has reported that it has experienced slowed demand for its cells in terms of automotive applications. It planned to offset this demand lag with more projects involving the cells in energy storage projects. This has been helped by the need for these systems at data centers used for AI.

During the Q1 Earnings Call, Tesla CFO Vaibhav Taneja confirmed that the company’s energy division had been impacted by the need to source cells from China-based suppliers. He went on to say that the company would work on “securing additional supply chain from non-China-based suppliers.”

It seems as if Tesla has managed to secure some of this needed domestic supply chain.

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Energy

Tesla Shanghai Megafactory produces 1,000th Megapack for export to Europe

The Shanghai Megafactory was able to hit this milestone less than six months after it started producing the Megapack. 

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Credit: Tesla Asia/X

Tesla Energy has announced a fresh milestone for its newest Megapack factory. As per the electric vehicle maker, the Shanghai Megafactory has successfully produced its 1,000th Megapack battery. 

The facility was able to hit this milestone less than six months after it started producing the grid-scale battery system. 

New Tesla Megapack Milestone

As per Tesla Asia in a post on its official accounts on social media platform X, the 1,000th Megapack unit that was produced at the Shanghai Megafactory would be exported to Europe. As noted in a CNEV Post report, Tesla’s energy products are currently deployed in over 65 countries and regions globally. This allows Tesla Energy to compete in energy markets that are both emerging and mature.

To commemorate the 1,000th Megapack produced at the Shanghai Megafactory, the Tesla China team posted with the grid-scale battery with celebratory balloons that spelled “Megapack 1000.” The milestone was celebrated by Tesla enthusiasts on social media, especially since the Shanghai Megafactory only started its operations earlier this year.

Quick Megafactory Ramp

The Shanghai Megafactory, similar to Tesla’s other key facilities in China, was constructed quickly. The facility started its construction on May 23, 2024, and it was hailed as Tesla’s first entry storage project outside the United States. Less than a year later, on February 11, 2025, the Shanghai Megafactory officially started producing Megapack batteries. And by March 21, 2025, Tesla China noted that it had shipped the first batch of Megapack batteries from the Shanghai plant to foreign markets.

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While the Shanghai Megafactory is still not at the same level of output as Tesla’s Lathrop Megafactory, which produces about 10,000 Megapacks per year, its ramp seems to be quite steady and quick. It would then not be surprising if Tesla China announces the Shanghai Megafactory’s 2,000th Megapack milestone in the coming months.

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