Energy
Tesla to end Home Depot partnership as it closes 12 solar facilities: report
Tesla is closing around a dozen of its solar facilities across nine states in the United States. The closures of the solar sites are reportedly part of the company’s ongoing restructuring, which is set to lay off 9% of Tesla’s workforce.
According to Reuters, the information comes from three internal company documents and statements from seven present and former Tesla employees. The documents accessed by the publication state that the latest cuts to the division come from a part of the company that was once SolarCity. Tesla’s partnership with Home Depot to push sales of its solar solutions and Powerwall 2 home batteries is set to be discontinued as well. According to Home Depot spokesman Stephen Holmes, its partnership with Tesla would last through the end of 2018, after which it would continue a partnership with competitor Sunrun in a number of its stores.
An internal company list reviewed by Reuters added that after the closures of the solar facilities, about 60 solar installation sites would remain open. The facilities that will be closed are reportedly located in California, Texas, Maryland, New York, New Jersey, Connecticut, New Hampshire, Delaware, and Arizona. Solar customer service staff at call centers in Utah and Nevada have also been reportedly laid off by the company.
A Tesla Powerwall 2 displayed in a Home Depot outlet. [Credit: Xixu/Twitter]
With the Home Depot partnership terminated, Tesla will now push its solar solutions through its own stores. Personnel from the facilities that are set to be closed are being transferred to other sites as well. In a statement to Reuters, Tesla noted that the company still expects to grow its solar and battery business over time.
“We continue to expect that Tesla’s solar and battery business will be the same size as automotive over the long term. Tesla stores have some of the highest foot traffic of any retail space in the country,” the company said.
While stopping its partnership with Home Depot might come off as alarming, GTM Research analyst Austin Perea noted that the deal might have been discontinued as a means to reduce unnecessary expenses. While the Home Depot partnership accounted for a significant number of solar and energy sales for Tesla, third-party retail partnerships are among the most expensive means of generating sales in the solar industry. According to Perea, the cost of winning a customer through Home Depot could cost up to $7,000 per system, roughly 45% more compared to the national average of $4,000 per installation.
Tesla’s energy business is steadily growing, however. Last month, CTO JB Straubel noted in a statement to Fast Company that Tesla had installed 1 GWh worth of energy storage to date, an impressive figure that was reiterated by Elon Musk during the company’s 2018 Annual Shareholder Meeting. During the investors’ event, Musk noted that Tesla would be doing another 1 GWh project less than a year from now, with more growth set to happen within the next few years. As could be seen in Tesla’s 10-Q form for Q1 2018, the company’s energy and storage revenue increased 92% in the three months ended March 31, 2008 year-on-year, primarily due to the earnings of the 129 MWh Powerpack farm in South Australia, which generated $72.5 million on its own.
Tesla continues to deploy its energy solutions to several projects across the globe. Currently, Tesla is involved in roughly 11,000 projects in Puerto Rico, where it continues to help communities damaged by Hurricane Maria get back on their feet. Tesla is also starting on the beginnings of a virtual power plant in South Australia involving 50,000 residential homes fitted with Powerwall 2 home batteries and residential solar.
Elon Musk
Tesla named by U.S. Gov. in $4.3B battery deal for American-made cells
What began as an open secret in the energy industry was confirmed by the U.S. Department of the Interior on Monday: Tesla is the buyer behind LG Energy Solution’s blockbuster $4.3 billion battery supply agreement.
What began as an open secret in the energy industry is becoming more real after the U.S. Department of the Interior named Tesla as the stakeholder in the LG Energy Solution’s blockbuster $4.3 billion battery supply agreement.
Tesla and LG Energy Solution are expanding their partnership to build a LFP prismatic battery cell manufacturing facility in Lansing, Michigan, launching production in 2027. The announcement, made as part of the Indo-Pacific Energy Security Summit results, ends months of speculation.
“American-made cells will power Tesla’s Megapack 3 energy storage systems produced in Houston, creating a robust domestic battery supply chain.”, notes a press release on the U.S. Department of the Interior website.
Tesla has long utilized China’s Contemporary Amperex Technology Co. (CATL), the world’s largest LFP battery maker, as one of its primary suppliers. That relationship made financial sense for years, considering that Chinese LFP cells were cheap, abundant, and reliable. But with escalated tariffs on Chinese imports and an increasingly growing Tesla Energy business that’s particularly reliant on LFP cells for products including its Megapack battery storage units designed for utilities and large-scale commercial projects.
The announcement of a deepened partnership between LG Energy Solution and Tesla has strategic logic for both parties. For Tesla, it secures a tariff-compliant, domestically produced battery supply for its fast-growing energy division. LGES, now producing LFP batteries in Michigan, becomes the only major supplier currently scaling U.S. production, outpacing rivals like Samsung SDI and SK On. LG Energy Solution’s Lansing plant, formerly known as Ultium Cells 3, was previously operated as a joint venture with General Motors. LGES acquired GM’s stake in May 2025 and now fully owns the site, with a production capacity of 50 GWh per year. LG Energy said the contract includes options to extend the supply period by up to seven years and boost volumes based on further consultations.
For the broader industry, the ripple effects are significant. This deal signals that domestic battery manufacturing can be financially viable and not just aspirational. Utilities, energy developers, and rival automakers will take note as American-made LFP supply becomes a competitive reality rather than a distant promise.
For consumers, the benefits will take time but are real. A more resilient, U.S.-based supply chain means fewer price shocks from trade disputes, more stable Megapack availability for the grid storage projects that reduce electricity costs, and long-term downward pressure on energy storage prices as domestic production scales.
Deliveries are set to begin in 2027 and run through mid-2030, and as grid storage demand accelerates, reliable, US-made battery supply is no longer a future ambition. It is becoming a core requirement of the country’s energy strategy.
Energy
Tesla Energy gains UK license to sell electricity to homes and businesses
The license was granted to Tesla Energy Ventures Ltd. by UK energy regulator Ofgem after a seven-month review process.
Tesla Energy has received a license to supply electricity in the United Kingdom, opening the door for the company to serve homes and businesses in the country.
The license was granted to Tesla Energy Ventures Ltd. by UK energy regulator Ofgem after a seven-month review process.
According to Ofgem, the license took effect at 6 p.m. local time on Wednesday and applies to Great Britain.
The approval allows Tesla’s energy business to sell electricity directly to customers in the region, as noted in a Bloomberg News report.
Tesla has already expanded similar services in the United States. In Texas, the company offers electricity plans that allow Tesla owners to charge their vehicles at a lower cost while also feeding excess electricity back into the grid.
Tesla already has a sizable presence in the UK market. According to price comparison website U-switch, there are more than 250,000 Tesla electric vehicles in the country and thousands of Tesla home energy storage systems.
Ofgem also noted that Tesla Motors Ltd., a separate entity incorporated in England and Wales, received an electricity generation license in June 2020.
The new UK license arrives as Tesla continues expanding its global energy business.
Last year, Tesla Energy retained the top position in the global battery energy storage system (BESS) integrator market for the second consecutive year. According to Wood Mackenzie’s latest rankings, Tesla held about 15% of global market share in 2024.
The company also maintained a dominant position in North America, where it captured roughly 39% market share in the region.
At the same time, competition in the energy storage sector is increasing. Chinese companies such as Sungrow have been expanding their presence globally, particularly in Europe.
Energy
Tesla Powerwall distribution expands in Australia
Inventory is expected to arrive in late February and official sales are expected to start mid-March 2026.
Supply Partners Group has secured a distribution agreement for the Tesla Powerwall in Australia, with inventory expected to arrive in late February and official sales beginning in mid-March 2026.
Under the new agreement, Supply Partners will distribute Tesla Powerwall units and related accessories across its national footprint, as noted in an ecogeneration report. The company said the addition strengthens its position as a distributor focused on premium, established brands.
“We are proud to officially welcome Tesla Powerwall into the Supply Partners portfolio,” Lliam Ricketts, Co-Founder and Director of Innovation at Supply Partners Group, stated.
“Tesla sets a high bar, and we’ve worked hard to earn the opportunity to represent a brand that customers actively ask for. This partnership reflects the strength of our logistics, technical services and customer experience, and it’s a win for installers who want premium options they can trust.”
Supply Partners noted that initial Tesla Powerwall stock will be warehoused locally before full commercial rollout in March. The distributor stated that the timing aligns with renewed growth momentum for the Powerwall, supported by competitive installer pricing, consumer rebates, and continued product and software updates.
“Powerwall is already a category-defining product, and what’s ahead makes it even more compelling,” Ricketts stated. “As pricing sharpens and capability expands, we see a clear runway for installers to confidently spec Powerwall for premium residential installs, backed by Supply Partners’ national distribution footprint and service model.”
Supply Partners noted that a joint go-to-market launch is planned, including Tesla-led training for its sales and technical teams to support installers during the home battery system’s domestic rollout.
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