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Tesla Powerwall takes center stage in Australia’s new battery program

(Credit: nathanwoodgc /Instagram)

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A Tesla Powerwall home battery has helped kick off one of Australia’s newest renewable energy initiatives. The 13.5 kWh battery, which was installed alongside a solar system at a home in the New South Wales Hunter region on Friday, is expected to be the first of 300,000 battery installations that will be delivered using the government’s interest-free loan scheme. 

The Powerwall 2 installation came less than two months after the Berejiklian government launched the pilot of the Empowering Homes Program, which is aimed at promoting sustainable energy solutions to residents in the area. The pilot is expected to last for up to 12 months, and it involves offering residents interest-free loans of up to AUD 14,000 for a solar-battery installation or up to AUD 9,000 for a battery storage unit. 

With the systems in place, the households participating in the program could save over AUD 250 per year on electricity bills after loan repayments. Without the loan repayments, savings are estimated to be up to AUD 2,000 per year for participants in the program. 

The Tesla Powerwall 2 is not the only residential battery supported by the program. Other energy storage units from companies such as Enphase, Sungrow, Sonnen, and Senec are also available for consumers. That being said, there is a lot to be said about a Tesla battery being the energy storage solution of choice to kick off the government’s entire program. 

In a way, Tesla batteries helped spread the word in Australia about the potential of energy storage solutions for use in real-world settings. The country is home to the Hornsdale Power Reserve, one of the biggest battery installations in the world. Built within a 100-day timeframe, the massive Powerpack farm is widely credited for helping South Australia address its energy problems. Tesla’s big battery installation in South Australia has been a success since Day 1, having saved the region from unexpected power outages numerous times. 

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The popularity of battery storage systems was hinted by Natural Solar founder and CEO Chris Williams, who noted in a statement to One Step Off the Grid that inquiries about battery storage systems have seen a spike as of late. With the launch of the Empowering Homes Program, Williams stated that there has been an “unprecedented number” of inquiries about residential battery storage solutions. 

“With many homes in the Hunter having an abundance of roof space, or already with solar panels installed, there is no doubt people are excited by the opportunity to adopt battery power and reap the benefits of the interest free loan, coupled with future savings. We are seeing annual household savings on energy bills of up to $2,000, homes reduce their carbon emissions and a reduced reliance on the grid. Our vision is to make solar and battery accessible to every Australian household, and the NSW government’s Empowering Homes Program will go a long way to achieving this goal for up to 300,000 homeowners across the state.” he said.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Energy

Tesla inks multi-billion-dollar deal with LG Energy Solution to avoid tariff pressure

Tesla has reportedly secured a sizable partnership with LGES for LFP cells, and there’s an extra positive out of it.

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Credit: Tesla

Tesla has reportedly inked a multi-billion-dollar deal with LG Energy Solution in an effort to avoid tariff pressure and domesticate more of its supply chain.

Reuters is reporting that Tesla and LGES, a South Korean battery supplier of the automaker, signed a $4.3 billion deal for energy storage system batteries. The cells are going to be manufactured by LGES at its U.S. factory located in Michigan, the report indicates. The batteries will be the lithium iron phosphate, or LFP, chemistry.

Tesla delivers 384,000 vehicles in Q2 2025, deploys 9.6 GWh in energy storage

It is a move Tesla is making to avoid buying cells and parts from overseas as the Trump White House continues to use tariffs to prioritize domestic manufacturing.

LGES announced earlier today that it had signed a $4.3 billion contract to supply LFP cells over three years to a company, but it did not identify the customer, nor did the company state whether the batteries would be used in automotive or energy storage applications.

The deal is advantageous for both companies. Tesla is going to alleviate its reliance on battery cells that are built out of the country, so it’s going to be able to take some financial pressure off itself.

For LGES, the company has reported that it has experienced slowed demand for its cells in terms of automotive applications. It planned to offset this demand lag with more projects involving the cells in energy storage projects. This has been helped by the need for these systems at data centers used for AI.

During the Q1 Earnings Call, Tesla CFO Vaibhav Taneja confirmed that the company’s energy division had been impacted by the need to source cells from China-based suppliers. He went on to say that the company would work on “securing additional supply chain from non-China-based suppliers.”

It seems as if Tesla has managed to secure some of this needed domestic supply chain.

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Energy

Tesla Shanghai Megafactory produces 1,000th Megapack for export to Europe

The Shanghai Megafactory was able to hit this milestone less than six months after it started producing the Megapack. 

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Credit: Tesla Asia/X

Tesla Energy has announced a fresh milestone for its newest Megapack factory. As per the electric vehicle maker, the Shanghai Megafactory has successfully produced its 1,000th Megapack battery. 

The facility was able to hit this milestone less than six months after it started producing the grid-scale battery system. 

New Tesla Megapack Milestone

As per Tesla Asia in a post on its official accounts on social media platform X, the 1,000th Megapack unit that was produced at the Shanghai Megafactory would be exported to Europe. As noted in a CNEV Post report, Tesla’s energy products are currently deployed in over 65 countries and regions globally. This allows Tesla Energy to compete in energy markets that are both emerging and mature.

To commemorate the 1,000th Megapack produced at the Shanghai Megafactory, the Tesla China team posted with the grid-scale battery with celebratory balloons that spelled “Megapack 1000.” The milestone was celebrated by Tesla enthusiasts on social media, especially since the Shanghai Megafactory only started its operations earlier this year.

Quick Megafactory Ramp

The Shanghai Megafactory, similar to Tesla’s other key facilities in China, was constructed quickly. The facility started its construction on May 23, 2024, and it was hailed as Tesla’s first entry storage project outside the United States. Less than a year later, on February 11, 2025, the Shanghai Megafactory officially started producing Megapack batteries. And by March 21, 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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While the Shanghai Megafactory is still not at the same level of output as Tesla’s Lathrop Megafactory, which produces about 10,000 Megapacks per year, its ramp seems to be quite steady and quick. It would then not be surprising if Tesla China announces the Shanghai Megafactory’s 2,000th Megapack milestone in the coming months.

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Energy

Tesla launches first Virtual Power Plant in UK – get paid to use solar

Tesla has launched its first-ever Virtual Power Plant program in the United Kingdom.

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Credit: Tesla Energy | X

Tesla has launched its first-ever Virtual Power Plant program in the United Kingdom. This feature enables users of solar panels and energy storage systems to sell their excess energy back to the grid.

Tesla is utilizing Octopus Energy, a British renewable energy company that operates in multiple markets, including the UK, France, Germany, Italy, Spain, Australia, Japan, New Zealand, and the United States, as the provider for the VPP launch in the region.

The company states that those who enroll in the program can earn up to £300 per month.

Tesla has operated several VPP programs worldwide, most notably in California, Texas, Connecticut, and the U.S. territory of Puerto Rico. This is not the first time Tesla has operated a VPP outside the United States, as there are programs in Australia, Japan, and New Zealand.

This is its first in the UK:

Tesla is not the only company that is working with Octopus Energy in the UK for the VPP, as it joins SolarEdge, GivEnergy, and Enphase as other companies that utilize the Octopus platform for their project operations.

It has been six years since Tesla launched its first VPP, as it started its first in Australia back in 2019. In 2024, Tesla paid out over $10 million to those participating in the program.

Tesla VPP program in California hits new capacity milestone

Participating in the VPP program that Tesla offers not only provides enrolled individuals with the opportunity to earn money, but it also contributes to grid stabilization by supporting local energy grids.

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