Tesla's Elon Musk Unveils Solar Batteries for Homes and Small Businesses
The system could easily take a home off the power grid, especially with the use of many solar panels, Musk said
From a man who made his name and charted his career with lofty goals and often unexpected financial decisions, the news came with little surprise: Elon Musk, the CEO of Tesla Motors Inc., unveiled a product line of electric batteries late last night in Los Angeles.The German bankers recognize the potential. This is really exciting. I had posted previously about this new type of power grid that such batteries would create. Now it's actually starting to happen.
Musk introduced the Tesla Powerwall, a wall-mounted lithium-ion electric battery for homes and small businesses, and the Tesla Powerpack, a heftier version of the same core product designed for utility-scale use.
He also announced a new wing of the company, Tesla Energy, which will begin shipping the Powerwall systems to domestic customers in three to four months. Deliveries will trickle out slowly, he said, then accelerate next year when the company begins shipping orders out from its so-called Gigafactory in Nevada.
Yet Musk spoke first about rising emissions and climate change solutions, not cars. He used a slide show of power plants and smoggy skies to introduce the problems. “It sucks, exactly,” he said. “I think we, collectively, should do something about this,” he added, “for us and a lot of other creatures.”
The Powerwall battery charging system, which can be stacked up to nine batteries high and mounted on an inner garage wall or outside, costs $3,000 for a 7-kilowatt-hour system and $3,500 for the 10 kWh option. The entire Powerwall system is roughly 3 feet wide and 4 feet long, and would stick out about 7 inches once mounted. It could easily take a home off the power grid, especially with the use of many solar panels, Musk said.
“Tesla is not just an automotive company, it's an energy innovation company,” the firm said in a statement. “Tesla Energy is a critical step in this mission to enable zero emission power generation.”
The utility version comes in 100 kWh blocks that can be grouped together. Musk said one utility company is already interested in a 250-gigawatt installation of Powerpack systems alone.
Shifting cities to 'stored sunlight'
“This entire night has been powered by batteries,” he told the audience in the warehouse in Hawthorne, Calif., pointing to gray, blocky Powerpack systems standing on end and powering the facility. “Everything you're experiencing is stored sunlight.”
Musk's solution is as audacious as it is simple. By harnessing energy from the sun—“this handy fusion reactor in the sky,” he called it last night—getting enough renewable energy on the power grid and smoothing out energy generation and use between peak and off-peak hours, the nation and planet can shift away from fossil fuels' dominance as a power source, he told the crowd.
The new batteries, he said, will help speed that transition worldwide. “These is going to be a great solution for people in remote parts of the world,” he said, noting that it allows homeowners to leave the power grid and ditch electric cables.
“It can scale globally,” he added, likening the battery systems' potential in emerging economies to mobile phones that penetrated markets faster than old technology and leapfrogged landline sales.
Tesla, the first American car company to go public since Ford Motor Co., has been a darling stock to many in recent years, climbing from trading in the $30 range in 2012 to above $200 a share for most of the past year.
In a research note about yesterday's announcement from Deutsche Bank AG, which was reported by Bloomberg, the authors struck a bullish tone, writing: “Based on the preliminary work on the economics of stationary storage, we believe that this has the potential to be more significant” than Wall Street analysts expect. The battery system, they wrote, could add up to $100 a share.
Karl Brauer, a senior analyst for Kelley Blue Book, said Tesla's new battery division could be even more successful than its car business. [...]