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Tesla Megapack targets utilities with massive 3MWh plug ‘n play battery

Tesla Megapack. | Image: Tesla

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After Tesla’s worldwide success with Powerpack battery grid installations, the company has now designed and engineered a new battery product called the Megapack made specifically for utility-scale projects. This larger battery pack has a 60% increase in energy density over the current Powerpack and boasts up to 3 megawatt hours (MWhs) of storage capacity per pack as a result. Megapacks also come completely assembled from Tesla’s factory for quick installation, altogether providing customers with savings in both cost and time.

Battery storage grids are important in the global energy grid’s transition to sustainable energy sources, and the Megapack’s massive capacity and scalability will make it an ideal choice for regions looking for a simple and cost-efficient ways to convert or support their current infrastructure. “Using Megapack, Tesla can deploy an emissions-free 250 MW, 1 GWh power plant in less than three months on a three-acre footprint – four times faster than a traditional fossil fuel power plant of that size,” Tesla stated in their announcement.

Along with an AC interface, the Megapack also includes DC-connectivity for solar grids, essentially giving it plug ‘n play capability for any type of power grid interface. Tesla’s Megapack product page further describes its “All-in-One-System” design:

“Every Megapack arrives pre-assembled and pre-tested in one enclosure from our Gigafactory—including battery modules, bi-directional inverters, a thermal management system, an AC main breaker and controls. No assembly is required, all you need to do is connect Megapack’s AC output to your site wiring,” Tesla detailed.

Tesla’s Megapack as a utility grid. | Image: Tesla

Tesla’s latest product is also very competitive compared to other utility power storage options available on the market. Thanks to its high-density energy storage capacity and modularity, the Megapack needs 40% less space and 10x fewer parts than comparable systems, according to data published on Tesla’s product page. This will bode well for areas with space constraints or simply desiring a smaller footprint for energy storage.

The Megapack will be utilized for an upcoming energy storage project hosted by Pacific Gas and Electric Company (PG&E) in Moss Landing, California once final approval from the state’s Public Utilities Commission is received. Under the project, Tesla’s battery-powered utility installation will store 182.5 megawatts of excess solar or wind energy to provide supplemental power during peak grid times for up to 4 hours at a time. It will take the place of natural gas “peaker” power plants, offering a much more efficient and clean alternative for Moss Landing’s energy needs.

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The original Tesla Powerwall was launched in 2015 and has since been used for storage projects worldwide by scaling its 210 kWh capacity. In the UK, one of the country’s largest bus operators is using Powerpacks to charge its fleet of 9 all-electric buses and has received positive reviews from both riders and drivers. The lack of diesel fumes is both a notable and welcome change. In South Australia, Tesla’s Hornsdale Powerpack installation ultimately became the largest lithium-ion battery in the world. Interestingly enough, Volkswagen’s Electrify America also recently decided to purchase and install Tesla Powerpacks at over 100 of its charging stations, totaling a capacity of 350 kWh with 210 kW rapid charging compatibility.

Tesla’s full Megapack product announcement is provided below:

Introducing Megapack: Utility-Scale Energy Storage

Less than two years ago, Tesla built and installed the world’s largest lithium-ion battery in Hornsdale, South Australia, using Tesla Powerpack batteries. Since then, the facility saved nearly $40 million in its first year alone and helped to stabilize and balance the region’s unreliable grid.

Battery storage is transforming the global electric grid and is an increasingly important element of the world’s transition to sustainable energy. To match global demand for massive battery storage projects like Hornsdale, Tesla designed and engineered a new battery product specifically for utility-scale projects: Megapack.

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Megapack significantly reduces the complexity of large-scale battery storage and provides an easy installation and connection process. Each Megapack comes from the factory fully-assembled with up to 3 megawatt hours (MWhs) of storage and 1.5 MW of inverter capacity, building on Powerpack’s engineering with an AC interface and 60% increase in energy density to achieve significant cost and time savings compared to other battery systems and traditional fossil fuel power plants. Using Megapack, Tesla can deploy an emissions-free 250 MW, 1 GWh power plant in less than three months on a three-acre footprint – four times faster than a traditional fossil fuel power plant of that size. Megapack can also be DC-connected directly to solar, creating seamless renewable energy plants.

For utility-size installations like the upcoming Moss Landing project in California with PG&E, Megapack will act as a sustainable alternative to natural gas “peaker” power plants. Peaker power plants fire up whenever the local utility grid can’t provide enough power to meet peak demand. They cost millions of dollars per day to operate and are some of the least efficient and dirtiest plants on the grid. Instead, a Megapack installation can use stored excess solar or wind energy to support the grid’s peak loads.

Tesla developed its own software in-house to monitor, control and monetize Megapack installations. All Megapacks connect to Powerhub, an advanced monitoring and control platform for large-scale utility projects and microgrids, and can also integrate with Autobidder, Tesla’s machine-learning platform for automated energy trading. Tesla customers have already used Autobidder to dispatch more than 100 GWh of energy in global electricity markets. And, just as Tesla vehicles benefit from continued software updates over time, Megapack continues to improve through a combination of over-the-air and server-based software updates.

As the world’s transition to sustainable energy continues to accelerate, the market for advanced battery storage solutions is growing rapidly. In the past year alone, we have installed more than 1 GWh of global storage capacity with our current storage products, Powerwall and Powerpack, bringing our total global footprint to more than 2 GWh of cumulative storage. With Megapack, this number will continue to accelerate exponentially in the coming years.

To learn more about Megapack and how our energy storage solutions for utilities and commercial customers are accelerating the transition to sustainable energy, visit tesla.com/megapack.

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Accidental computer geek, fascinated by most history and the multiplanetary future on its way. Quite keen on the democratization of space. | It's pronounced day-sha, but I answer to almost any variation thereof.

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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.

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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.

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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.”

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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.

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Credit: Tesla Asia/X

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.

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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.

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Energy

Tesla recalls Powerwall 2 units in Australia

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(Credit: nathanwoodgc /Instagram)

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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