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.
Tesla has chosen the location of its latest manufacturing project, a facility that will churn out the Megapack, a large-scale energy storage system for solar energy projects. It has chosen Waller County, Texas, as the location of the new plant, according to a Commissioners Court meeting that occurred on Wednesday, March 5.
Around midday, members of the Waller County Commissioners Court approved a tax abatement agreement that will bring Tesla to its area, along with an estimated 1,500 jobs. The plant will be located at the Empire West Industrial Park in the Brookshire part of town.
Brookshire also plans to consider a tax abatement for Tesla at its meeting next Thursday.
The project will see a one million square-foot building make way for Tesla to build Megapack battery storage units, according to Covering Katy News, which first reported on the company’s intention to build a plant for its energy product.
CEO Elon Musk confirmed on the company’s Q4 2024 Earnings Call in late January that it had officially started building its third Megapack plant, but did not disclose any location:
“So, we have our second factory, which is in Shanghai, that’s starting operation, and we’re building a third factory. So, we’re trying to ramp output of the stationary battery storage as quickly as possible.”
Tesla plans third Megafactory after breaking energy records in 2024
The Megapack has been a high-demand item as more energy storage projects have started developing. Across the globe, regions are looking for ways to avert the loss of power in the event of a natural disaster or simple power outage.
This is where Megapack comes in, as it stores energy and keeps the lights on when the main grid is unable to provide electricity.
Vince Yokom of the Waller County Economic Development Partnership, commented on Tesla’s planned Megapack facility:
“I want to thank Tesla for investing in Waller County and Brookshire. This will be a state-of-the-art manufacturing facility for their Megapack product. It is a powerful battery unit that provides energy storage and support to help stabilize the grid and prevent outages.”
Tesla has had a lease on the building where it will manufacture the Megapacks since October 2021. However, it was occupied by a third-party logistics company that handled the company’s car parts.
Tesla Energy has become the undisputed dark horse of the electric vehicle maker. This was highlighted by Tesla Energy’s growing role in the company’s overall operations in the past quarters.
And as per Tesla’s year-end milestone posts on X, Tesla Energy had a blockbuster 2024.
Tesla Energy’s 2024 milestones:
- As per Tesla on its official social media account on X, the company has hit over 800,000 Powerwalls installed worldwide.
- From this number, over 100,000 Powerwall batteries have been enrolled in virtual power plant (VPP) programs.
- The Powerwall 3 has officially been launched in the United States, Canada, Puerto Rico, the U.K., Germany, Italy, Australia, and New Zealand.
- The Tesla Megapack hit over 22 GWh in operation across more than 60 countries across the globe.
- The Lathrop Megafactory, which produces the Megapack, has been ramped to 40 GWh per year.
- The Lathrop Megafactory has also produced its 10,000th Megapack battery.
- The Shanghai Megafactory was completed in just seven months, and it is ready to start Megapack production in Q1 2025.
Hit 800k Powerwalls installed worldwide
— Tesla (@Tesla) December 31, 2024
Also:
– Over 100k Powerwalls are now enrolled in VPP programs
– Launched Powerwall 3 in the US, Canada, Puerto Rico, UK, Germany, Italy, Australia & New Zealand
– Megapack hit 22+ GWh in operation across 60+ countries
– Ramped… pic.twitter.com/bE88DpeyTg
Powerwall owners’ 2024 impact:
- As per Tesla Energy, Powerwall owners generated a total of 4.5 TWh of solar energy globally in 2024. This was equivalent to powering a Model 3 for more than 17 billion miles.
- A total of 1.1 TWh of energy was stored in Powerwalls in 2024. This protected homes from over 5.8 million outages during the year.
- Tesla’s Storm Watch feature for Powerwall batteries covered 2.8 million severe weather events over the year.
- Powerwall owners saw collective savings of over $800 million on utility bills.
- Virtual Power Plants contributed over 2.2 GWh of power to the grid. This reduced the need for 2,200 metric tons of fossil fuel peaker plant emissions.
Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.
Utah-based rPlus Energies recently held the groundbreaking ceremony for the Green River Energy Center, a 400 MW solar PV and 400 MW/1,600 MWh battery storage project in Eastern Utah. Tesla Megapacks will be used as the upcoming facility’s battery storage solution.
At 400 MW/1,600 MWh, the Green River Energy Center is expected to become one of the largest solar-plus-storage projects under development in the United States. Once operational, the facility would supply power to PacifiCorp under a power purchase agreement, as noted in a press release.
Utah Gov. Spencer Cox shared his excitement for the project during the Green River Energy Center’s groundbreaking event. As per the Utah Governor, the solar and battery storage system represents a notable step forward for the state’s sustainable energy efforts.
NEWS: rPlus Energy has just broken ground on a new $362 million @Tesla Megapack battery energy storage system in Utah.
This 400 MW solar PV and 400 MW/1,600 MWh battery storage project is one of the largest solar-plus-storage projects under construction in the nation. The entire… pic.twitter.com/ubPOUnPWEf— Sawyer Merritt (@SawyerMerritt) September 24, 2024
“This project is being built in rural Utah, by rural Utahns, and for all of Utah. When rural Utah thrives, the entire state prospers. Today, we’re not just breaking ground—we’re building a future of affordable, abundant energy in Utah,” the official noted.
The Green River Energy Center secured over $1 billion in construction debt financing earlier this year. The facility is also expected to create about 500 jobs, many of which will be filled by local workers. With this in mind, the solar and battery farm would likely prove to be a boost to Emery County’s economy, enhancing tax revenue, strengthening public services, and offering long-term employment opportunities for the area’s residents.
Sundt Construction will serve as the project’s contractor, EliTe Solar will supply the solar modules, and Tesla will provide the battery storage system for the project. Luigi Resta, President and CEO of rPlus Energies, noted that the Green River Energy Center is special because of the entities that have worked together to make the facility a reality.
“It’s the partners that make this project special, that have made this monumental project possible. From our equipment providers to the onsite talent, and the support of the local and regional community, we owe this project’s success to each of you,” he stated.
Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.
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