

Energy
Tesla says its SA battery response time is too fast for utility billing system
Tesla’s 100 MW/129MWh Powerpack system near Jamestown in South Australia is proving to be so quick in providing backup power to the energy grid that 30-40% of the services it provides end up unpaid. The electric car and energy company claims that this is due to SA’s legacy utility billing system not being optimized for the big battery’s response time.
Tesla’s earnings from its big battery installation currently follow the standards set by the Australian Energy Market Operator (AEMO), which breaks down a power provider’s response time into 6 seconds, 1 minute, and 5 minutes for energy to be fed into the grid. Tesla’s SA Powerpack farm near Jamestown, however, has been providing backup energy in as quick as 200 milliseconds. Thus, any amount of energy sent from Tesla’s battery into the grid that lasts between 200 milliseconds and 6 seconds is just too quick to be registered according to AEMO’s current specifications.
In a statement to The Sydney Morning Herald, Tesla stated that around 30%-40% of services provided by the SA big battery ended up unpaid due to the system’s quick response time. Tesla further asserted that AEMO’s standards are currently designed for fossil fuel-based backup systems, which respond to energy grid instabilities far slower than the industry-grade Powerpack batteries.
“Tesla estimates that the Hornsdale Power Reserve battery has delivered 30 to 40% of its services to frequency markets without being paid due to existing AEMO technical specifications being written based on fossil fuel generation assets.
“Current standards compensate batteries for their capacity based on fossil generator response rates, despite the ability to provide a faster ramp time. This makes it difficult for the full value of fast-responding technologies to be recognized in the current contingency FCAS markets.”
Over the past few months, Tesla’s SA Powerpack farm, which currently stands as the largest lithium-ion battery installation in the world, has been pivotal in stabilizing the energy grid in South Australia. Last December alone, Tesla’s 100 MW/129MWh installation accomplished a huge feat, keeping the region’s energy stable amidst the unexpected failure of the coal-powered Loy Yang A power plant in Victoria. During that time, Tesla’s Powerpacks backed up the grid within 0.14 seconds after the unexpected breakdown of the coal-powered plant. The system also supported the grid hundreds of times over the course of the month.
The performance of Tesla’s big battery in South Australia was recently examined by energy expert Hugh Saddler, who studied the charge and discharge patterns of the installation. Over the course of his tests, Saddler noted that the Powerpack farm exhibited great efficiency, with 30% of the battery’s 100MW capacity being allocated to the system’s daily charge and discharge cycles, and the rest being allotted to keep the energy grid’s frequency at a steady 50 Hz and 240 volts.
Tesla’s energy initiatives in South Australia recently met a series of roadblocks, however, with South Australia resource minister Matt Canavan mocking the SA Powerpack farm by calling it the “Kardashian” of the energy industry and alleging that the installation is simply “famous for being famous.” Newly-elected South Australia premier Steven Marshall has also gone on the offensive against the Elon Musk-led company’s projects, stating that his government would not be supporting Tesla’s proposal of building a 250 MW/650 MWh virtual power plant from 50,000 low-income residential units and home Powerwall 2 systems.
Energy
Tesla Energy celebrates one decade of sustainability
Tesla Energy has gone far since its early days, and it is now becoming a progressively bigger part of the company.

Tesla Energy recently celebrated its 10th anniversary with a dedicated video showcasing several of its milestones over the past decade.
Tesla Energy has gone far since its early days, and it is now becoming a progressively bigger part of the company.
Tesla Energy Early Days
When Elon Musk launched Tesla Energy in 2015, he noted that the business is a fundamental transformation of how the world works. To start, Tesla Energy offered the Powerwall, a 7 kWh/10 kWh home battery system, and the Powerpack, a grid-capable 100 kWh battery block that is designed for scalability. A few days after the products’ launch, Musk noted that Tesla had received 38,000 reservations for the Powerwall and 2,500 reservations for the Powerpack.
Tesla Energy’s beginnings would herald its quiet growth, with the company later announcing products like the Solar Roof tile, which is yet to be ramped, and the successor to the Powerwall, the 13.5 kWh Powerwall 2. In recent years, Tesla Energy also launched its Powerwall 3 home battery and the massive Megapack, a 3.9 MWh monster of a battery unit that has become the backbone for energy storage systems across the globe.
Key Milestones
As noted by Tesla Energy in its recent video, it has now established facilities that allow the company to manufacture 20,000 units of the Megapack every year, which should help grow the 23 GWh worth of Megapacks that have already been deployed globally.
The Powerwall remains a desirable home battery as well, with more than 850,000 units installed worldwide. These translate to 12 GWh of residential entry storage delivered to date. Just like the Megapack, Tesla is also ramping its production of the Powerwall, allowing the division to grow even more.
Tesla Energy’s Role
While Tesla Energy does not catch as much headlines as the company’s electric vehicle businesses, its contributions to the company’s bottom line have been growing. In the first quarter of 2025 alone, Tesla Energy deployed 10.4 GWh of energy storage products. Powerwall deployments also crossed 1 GWh in one quarter for the first time. As per Tesla in its Q1 2025 Update Letter, the gross margin for the Energy division has improved sequentially as well.
Elon Musk
Tesla Energy shines with substantial YoY growth in deployments

Tesla Energy shined in what was a weak delivery report for the first quarter, as the company’s frequently-forgotten battery storage products performed extraordinarily well.
Tesla reported its Q1 production, delivery, and deployment figures for the first quarter of the year, and while many were less-than-excited about the automotive side, the Energy division performed well with 10.4 GWh of energy storage products deployed during the first quarter.
This was a 156 percent increase year-over-year and the company’s second-best quarter in terms of energy deployments to date. Only Q4 2024 was better, as 11 GWh was recorded.
Tesla Energy is frequently forgotten and not talked about enough. The company has continued to deploy massive energy storage projects across the globe, and as it recorded 31.5 GWh of deployments last year, 2025 is already looking as if it will be a record-setting year if it continues at this pace.
Tesla Megapacks to back one of Europe’s largest energy storage sites
Although Energy performed well, many investors are privy to that of the automotive division’s performance, which is where some concern lies. Tesla had a weak quarter for deliveries, missing Wall Street estimates by a considerable margin.
There are two very likely reasons as to why this happened: the first is Tesla’s switchover to the new Model Y at its production facilities across the globe. Tesla said it lost “several weeks” of production due to the updating of manufacturing lines as it rolled out a new version of its all-electric crossover.
Secondly, Tesla could be facing some pressure from pushback against the brand, which is what many analysts will say. Despite the publicity of attacks on Tesla drivers and their vehicles, as well as the company’s showrooms, it would be safe to assume that we will have a better picture painted of what the issue is in Q2 after the company reports numbers in July.
If Tesla is still struggling with lackluster delivery figures in Q2 after the Model Y is ramped and deliveries are more predictable and consistent, we could see where the argument for brand damage is legitimate. However, we are more prone to believe the Model Y, which accounts for most of Tesla’s sales, and its production ramp is likely the cause for what happened in Q1.
In what was a relatively bleak quarter, Tesla Energy still shines as the bright spot for the quarter.
Energy
Tesla lands in Texas for latest Megapack production facility

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.
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