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Tesla’s giant ‘Virtual Power Plant’ made of 50k homes and Powerwalls enters 2nd phase

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Tesla’s ambitious plan to establish a 250 MW/650 MWh “Virtual Power Plant” in South Australia is moving to its second phase. In an announcement last week, Minister for Energy and Mining Dan van Holst Pellekaan stated that initiatives are now underway to install Powerwall 2 home battery units and solar panels to another 1,000 Housing SA properties.

The proposed Virtual Power Plant was conceived by Tesla and South Australia’s former Labor government earlier this year. The project is undoubtedly ambitious, involving 50,000 connected homes, each fitted with a 13.5 kWh Tesla Powerwall 2 battery and a 5 kW rooftop solar system. The 50,000 houses are expected to deliver 250 MW of solar energy and 650 MWh of battery storage capacity. Just like Tesla’s Powerpack farm in South Australia, the VPP will be capable of providing additional grid stability by shifting demand away from a stressed grid during peak hours.

The first phase of the project, which involved the installation of batteries and solar panels to the first 100 houses of the VPP, has been successful so far. Households that are part of the existing system have reported a 70% reduction in their grid consumption, leading to lower power bills. With the first trial phase done, Tesla and solar retail partner Energy Locals are now looking to add 1,000 more households to the system.

Tesla’s planned Virtual Power Plant passed through several challenges this year, particularly after the Labor Party was replaced by the Liberal Party after the elections last March. In an announcement after being elected, new South Australian Premier Steven Marshall suggested that his government would not be supporting Tesla’s VPP. Marshall’s government instead proposed an alternative, involving subsidies for 40,000 homes to purchase battery systems.

Unlike Tesla’s proposed Virtual Power Plant, Marshall’s plan would require homeowners to purchase battery packs (albeit at a lower price), making the system out of reach for low-income households. Marshall’s plan is also limited to houses that are already fitted with solar panels. Tesla’s VPP, on the other hand, aims to provide both solar systems and Powerwall 2 batteries to 50,000 low-income households for free. 

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Marshall eventually took a more moderate stance on Tesla’s Virtual Power Plant amidst backlash over his lack of support for the project. By the end of May, Energy Minister Dan van Holst Pellekaan announced that the South Australian government would be supporting both Tesla’s proposal and Marshall’s alternative battery subsidy plan. In an announcement last week at the SA Department of Energy and Mining’s official website, van Holst Pellekaan expressed his optimism about the growing VPP.

“The VPP will deliver cheaper electricity to some of South Australia’s most disadvantaged households while increasing the reliability of the state’s electricity network. We have made South Australia the world capital of home batteries with our Home Battery Scheme attracting three battery manufacturers to South Australia and by driving forward with the VPP,” he said.

If the second phase of the Virtual Power Plant proves successful, the third, most ambitious phase of the project will commence. Provided that funding for the estimated AU$800 million ($628 million) project is secured, the system would grow to 50,000 homes over the next few years. When complete, the 50,000-strong Virtual Power Plant is expected to deliver 250 MW of solar energy and 650 MWh of battery storage capacity, dwarfing the highly successful Hornsdale Power Reserve near Jamestown, which has a 100MW/129MWh capacity.

Watch Tesla’s teaser for the South Australia Virtual Power Plant in the video below.

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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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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.

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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

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“(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.”

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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.

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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.

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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.

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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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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.

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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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