Tesla’s Energy business, while not attracting as many headlines as the company’s electric car division, continues to expand its reach. While some of Tesla Energy’s projects fly practically under the radar, the company’s lithium-ion battery storage units have, quite literally, changed lives across the globe.
When Tesla announced its first quarter results last week, the company noted that it is streamlining its residential energy storage business with a simplified online sales channel. The company also stated that it expects to grow its Energy business this year, as it works through the backlog of Powerwall orders that have been, for the most part, put aside in favor of the company’s ramp for the Model 3 in 2018.
“Energy generation and storage revenue should increase significantly in 2019. This increase is driven mainly due to the storage business as we increase production to address our backlog in Powerwall orders and deliver on our pipeline of orders for commercial storage and an expected growth in retrofit solar deployments in the second half of 2019,” Tesla noted.
One of these Tesla Energy orders could be found in Eritrea, a country in the Horn of Africa. Tesla was involved in two projects in the nation, particularly in Areza and Maidma, where it played a crucial role in establishing a 1.25MW and 1MW mini-grid for the rural communities. The projects were led by UK solar developer Solarcentury, who opted to utilize Tesla’s lithium-ion batteries as the energy storage units of choice for the mini-grid. Overall, the project benefitted around 40,000 people and businesses, which will now be getting cheaper and more stable power.
Prior to the installation of its solar panels and Tesla batteries, the communities in Areza and Maidma relied solely on diesel. With the mini-grid in place, the residents of the African nation will be able to step away from inconveniences such as fluctuating diesel prices, steep maintenance costs of its diesel equipment, and reduced air quality. Theo Guerre-Canon, a project manager at Solarcentury, described the mini-grid’s benefits in a statement to Forbes. “Our hope is that access to reliable electricity will support wider economic growth in the region and social development. For example, there’s a clinic in Areza that will now benefit from uninterrupted electricity,” he said.
This is not the first time that Tesla’s batteries have literally changed the lives of communities for the better. In the Philippines, Tesla worked with a solar provider to install a microgrid in a town that’s notorious for never having 24/7 power. Since coming online, Tesla’s batteries have affected many of the town’s residents. Fishermen, for example, are now able to freeze their catch and sell them to towns that are farther away, resulting in more income. These benefits might seem trivial to many, but for residents who have been conditioned to think of power interruptions as part of everyday life, having round-the-clock electricity thanks to Tesla’s batteries is remarkable.
Now that Tesla has all but mastered Model 3 production, the company appears to be finally ready to push its Energy business more aggressively. This was teased by Elon Musk himself during the unveiling of the Tesla Model Y, where he noted that 2019 would be the “Year of the Solar Roof and Powerwall.” Musk also highlighted how Tesla Energy is invaluable to the company’s mission. “Solar plus battery plus electric vehicles, we have a fully sustainable future. That’s a future you can feel really excited and optimistic about. I think that really matters,” Musk said. For the communities that have been changed and helped by Tesla’s batteries, these words definitely ring true.
Energy
Tesla VP hints at Solar Roof comeback with Giga New York push
The comments hint at possible renewed life for the Solar Roof program, which has seen years of slow growth since its 2016 unveiling.
Tesla’s long-awaited and way underrated Solar Roof may finally be getting its moment. During the company’s Q3 2025 earnings call, Vice President of Energy Engineering Michael Snyder revealed that production of a new residential solar panel has started at Tesla’s Buffalo, New York facility, with shipments to customers beginning in the first quarter of 2026.
The comments hint at possible renewed life for the Solar Roof program, which has seen years of slow growth since its 2016 unveiling.
Tesla Energy’s strong demand
Responding to an investor question about Tesla’s energy backlog, Snyder said demand for Megapack and Powerwall continues to be “really strong” into next year. He also noted positive customer feedback for the company’s new Megablock product, which is expected to start shipping from Houston in 2026.
“We’re seeing remarkable growth in the demand for AI and data center applications as hyperscalers and utilities have seen the versatility of the Megapack product. It increases reliability and relieves grid constraints,” he said.
Snyder also highlighted a “surge in residential solar demand in the US,” attributing the spike to recent policy changes that incentivize home installations. Tesla expects this trend to continue into 2026, helped by the rollout of a new solar lease product that makes adoption more affordable for homeowners.
Possible Solar Roof revival?
Perhaps the most intriguing part of Snyder’s remarks, however, was Tesla’s move to begin production of its “residential solar panel” in Buffalo, New York. He described the new panels as having “industry-leading aesthetics” and shape performance, language Tesla has used to market its Solar Roof tiles in the past.
“We also began production of our Tesla residential solar panel in our Buffalo factory, and we will be shipping that to customers starting Q1. The panel has industry-leading aesthetics and shape performance and demonstrates our continued commitment to US manufacturing,” Snyder said during the Q3 2025 earnings call.
Snyder did not explicitly name the product, though his reference to aesthetics has fueled speculation that Tesla may finally be preparing a large-scale and serious rollout of its Solar Roof line.
Originally unveiled in 2016, the Solar Roof was intended to transform rooftops into clean energy generators without compromising on design. However, despite early enthusiasm, production and installation volumes have remained limited for years. In 2023, a report from Wood Mackenzie claimed that there were only 3,000 operational Solar Roof installations across the United States at the time, far below forecasts. In response, the official Tesla Energy account on X stated that the report was “incorrect by a large margin.”
Energy
Tesla China’s Megafactory helps boost Shanghai’s battery exports by 20%: report
Located in the Lingang New Area of the Shanghai Free Trade Zone, the Tesla Megafactory has been running at full throttle since opening in February.
Reports from China have indicated that the Tesla Shanghai Megafactory has become a notable player in China’s booming battery export market.
Located in the Lingang New Area of the Shanghai Free Trade Zone, the Tesla Megafactory has been running at full throttle since opening in February. It produces Tesla Megapack batteries for domestic and international use.
Tesla Shanghai Megafactory
As noted in a report from Sina Finance, the Tesla Shanghai Megafactory’s output of Megapack batteries helped drive a notable rise in lithium battery shipments from the city in the first three quarters of 2025. This is quite impressive as the Megafactory is a rather young facility, though it has been steadily increasing its production capacity.
“The establishment of this benchmark factory has not only driven the rapid development of Shanghai’s energy storage industry but also become a new growth engine for foreign trade exports. Driven by the Tesla energy storage factory’s opening, Shanghai’s lithium battery exports reached 32.15 billion yuan ($4.5 billion) in the first three quarters, a 20.7% increase,” the publication wrote.
Ultimately, the Shanghai Megafactory has proved helpful to the city’s “new three” industries, which are comprised of new energy vehicles, lithium batteries, and photovoltaic systems. Exports of the “new three” products reached 112.17 billion yuan ($15.7 billion), a 6.3% year-over-year increase during the same period. The city’s total trade volume grew 5.4% year-over-year as well, with exports up 11.3%, driven largely by the clean energy sector’s performance.
Energy storage is helping Shanghai
Since opening in February, the Shanghai Megafactory has been firing on all cylinders. In late July, Tesla Energy announced that the new battery factory has successfully produced its 1,000th Megapack unit. That’s quite impressive for a facility that, at the time, had only been operational for less than six months.
Speed has always been a trademark of the Shanghai Megafactory. Similar to Tesla’s other key facilities in China, the Megafactory was constructed quickly. The facility started its construction on May 23, 2024. Less than a year later, the site officially started producing Megapack batteries. By late March 2025, Tesla China noted that it had shipped the first batch of Megapack batteries from the Shanghai plant to foreign markets.
Tesla will recall Powerwall 2 units in Australia after a handful of property owners reported fires that caused “minor property damage.” The fires were attributed to cells used by Tesla in the Powerwall 2.
Tesla Powerwall is a battery storage unit that retains energy from solar panels and is used by homeowners and businesses to maintain power in the event of an outage. It also helps alleviate the need to rely on the grid, which can help stabilize power locally.
Powerwall owners can also enroll in the Virtual Power Plant (VPP) program, which allows them to sell energy back to the grid, helping to reduce energy bills. Tesla revealed last year that over 100,000 Powerwalls were participating in the program.
Tesla announces 100k Powerwalls are participating in Virtual Power Plants
The Australia Competition and Consumer Commission said in a filing that it received several reports from owners of fires that led to minor damage. The Australian government agency did not disclose the number of units impacted by the recall.
The issue is related to the cells, which Tesla sources from a third-party company.
Anyone whose Powerwall 2 unit is impacted by the recall will be notified through the Tesla app, the company said.
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