Connect with us

Energy

Tesla Megapack project breaks ground, Arizona’s largest project yet

Credit: SRP Energy

Published

on

A new Tesla Megapack project has broken ground in Arizona, and when it comes online in 2024, it will be the state’s largest energy storage system.

For utilities, battery energy storage is one of the most helpful new technologies they can employ to reduce fossil fuel dependence and increase the reliability of their associated grid. By holding onto excess power generated during lulls in demand, power companies can more easily address peak demand and, importantly, reduce costs. Now, a new Tesla Megapack energy storage system is set to do just that in Arizona.

The Sierra Estrella energy storage facility, constructed by utility company Salt River Project (SRP) and energy system constructor Plus Power LLC, will be the largest of its kind in Arizona. The massive network of Tesla Megapacks will have a capacity of 1,000MWh, enough energy to power 56,000 homes for four hours. According to previous information released by SRP, the project was set to cost $400 million, but this does not account for the recent Tesla Megapack price cut.

This comes as Arizona attempts to become a leader in the use of renewable energy generation systems. According to the U.S. Energy Information Administration, Arizona is unsurprisingly the fifth top producer of solar energy, constituting a considerable 9% of its overall power generation. Moreover, while still receiving a significant 43% of its energy from natural gas, other fossil fuels like oil and coal are quickly shrinking in use, representing just over 13% of power generation combined, though nearly all of that share is coal power.

The rest of Arizona’s energy comes from either Nuclear (28%), hydroelectric (5%), or wind (1%). Cumulatively, these six aforementioned sources account for 99% of the state’s energy generation, with hydroelectric pump storage, biomass, and petroleum accounting for the remaining 1%.

Advertisement

This is where Tesla’s energy storage system can come into play to help the transition. By holding power generated, specifically from the state’s numerous solar energy projects, the new Tesla Megapack can prevent fossil fuel plants from having to be turned on in the first place, primarily addressing peak power in the evening in the Arizona summer. SRP notes that it is currently constructing more solar projects, which will feed the Megapack system as they come online in the coming years.

According to SRP, with the new Tesla energy storage project coming online in 2024 and three other energy storage systems coming online later this year, as much as 10% of its power supply will come from energy storage.

What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!

Will is an auto enthusiast, a gear head, and an EV enthusiast above all. From racing, to industry data, to the most advanced EV tech on earth, he now covers it at Teslarati.

Comments

Energy

Tesla starts hiring efforts for Texas Megafactory

Tesla’s Brookshire site is expected to produce 10,000 Megapacks annually, equal to 40 gigawatt hours of energy storage.

Published

on

Tesla's Megapack Factory in Lathrop, CA (Credit: Tesla)

Tesla has officially begun hiring for its new $200 million Megafactory in Brookshire, Texas, a manufacturing hub expected to employ 1,500 people by 2028. The facility, which will build Tesla’s grid-scale Megapack batteries, is part of the company’s growing energy storage footprint. 

Tesla’s hiring efforts for the Texas Megafactory are hinted at by the job openings currently active on the company’s Careers website.

Tesla’s Texas Megafactory

Tesla’s Brookshire site is expected to produce 10,000 Megapacks annually, equal to 40 gigawatt hours of energy storage, similar to the Lathrop Megafactory in California. Tesla’s Careers website currently lists over 30 job openings for the site, from engineers, welders, and project managers. Each of the openings is listed for Brookshire, Texas.

The company has leased two buildings in Empire West Business Park, with over $194 million in combined property and equipment investment. Tesla’s agreement with Waller County includes a 60% property tax abatement, contingent on meeting employment benchmarks: 375 jobs by 2026, 750 by 2027, and 1,500 by 2028, as noted in a report from the Houston Business Journal. Tesla is required to employ at least 1,500 workers in the facility through the rest of the 10-year abatement period. 

Tesla’s clean energy boom

City officials have stated that Tesla’s arrival marks a turning point for the Texas city, as it highlights a shift from logistics to advanced clean energy manufacturing. Ramiro Bautista from Brookshire’s economic development office, highlighted this in a comment to the Journal

Advertisement

“(Tesla) has great-paying jobs. Not just that, but the advanced manufacturing (and) clean energy is coming to the area,” he said. “So it’s not just your normal logistics manufacturing. This is advanced manufacturing coming to this area, and this brings a different type of job and investment into the local economy.”

Continue Reading

Energy

Tesla and Samsung SDI in talks over new US battery storage deal: report

The update was related by industry sources and initially reported by South Korean news outlets.

Published

on

Credit: Tesla Megapack

Recent reports have suggested that Tesla and Samsung SDI are in talks over a potential partnership to supply batteries for large-scale energy storage systems (ESS). 

The update was related by industry sources and initially reported by South Korean news outlets. 

ESS batteries to be built at Samsung’s Indiana plant

As noted in a report from Korea JoongAng Daily, the demand for energy storage systems has been growing rapidly in North America, thanks in no small part to the surge in AI investments across numerous companies. With this in mind, Tesla has reportedly approached Samsung SDI about a potential battery supply deal.

The deal is reportedly worth over 3 trillion Korean won (approximately $2.11 billion) and will span three years, according to The Korea Global Economic Daily. A battery supply deal with Samsung SDI could make sense for Tesla as the company already has a grid-scale battery, the Megapack, which is perfect for industrial use. Samsung SDI could simply supply cells for the EV maker.

Production of the batteries would reportedly take place at Samsung SDI’s joint venture factory with Stellantis in Indiana, which is currently under construction. Samsung SDI recently announced plans to use part of that plant’s EV lines to produce cells for ESS, with a targeted capacity of 30 GWh by the end of next year.

Advertisement

Tesla and Samsung’s partnership

At present, only a handful of manufacturers, including Korea’s LG Energy Solution, Samsung SDI, SK On, and Japan’s Panasonic, are capable of producing energy storage-scale batteries domestically in the United States. A Samsung SDI official issued a comment about the matter, stating, “Nothing has been finalized regarding cooperation with Tesla.”

The possible energy storage system deal adds another layer to Tesla’s growing collaboration with Samsung, which is already in line as a partner in the upcoming production of Tesla’s AI5 and AI6 chips. Early sample manufacturing of the AI6 is expected to begin in South Korea, with mass production slated for Samsung’s Texas-based Taylor foundry when it starts operations.

The AI6 chip will power Tesla’s next wave of high-volume projects, including the Optimus humanoid robot and the autonomous Cybercab service. Musk has called the partnership with Samsung a “real collaboration,” adding that he personally plans to “walk the line” at the Taylor facility to speed up progress.

Continue Reading

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.

Published

on

tesla-solar-roof-500k
Image Credit: Tesla/Twitter

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.

Advertisement

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.”

Advertisement
Continue Reading

Trending