Tesla has announced its foray into the energy sector, introducing a line of low-cost solar batteries for households, companies, and utilities, which it calls “the missing piece” in the transition to a sustainable energy future.
The $3,500 batteries were unveiled on Thursday at a Tesla factory in California by the company’s visionary creator, Elon Musk, who described the technology as “a major shift [in] how energy is provided throughout the globe.”
The lithium-ion batteries, which are wall-mounted and have a sleek look, are meant to gather and store up to 10kWh of energy from a wind or solar panel. The reserves may be used when the sun isn’t shining as brightly, during power outages, or during peak demand periods, when energy expenditures are greatest.
The smallest “Powerwall” is 1.3m by 68cm and may be mounted on an indoor or exterior wall. Musk revealed at the much-anticipated event that up to eight batteries may be “stacked” in a house, drawing plaudits from investors and journalists.
The batteries will be made in the electric vehicle company’s facility in California at first, but when it opens in 2017, production will be moved to its planned “gigafactory” in Nevada.
The Nevada factory will be the world’s biggest maker of lithium-ion batteries, and its mass-production size is expected to help down prices even further.
Although the Powerwall is not the only battery storage device on the market, it has a reasonably large storage capacity, a competitive pricing, and the gravitas of investment and enthusiasm that Musk’s vision has produced.
The entrepreneur, who co-created PayPal and is experimenting with a high-speed public transportation system dubbed Hyperloop, has also formed a private space firm, Space X, and co-founded a private space company, Space X.
Musk also presented a bigger “Powerpack,” a 100kWh battery block designed to assist utilities smooth out their inconsistent supply of wind and solar energy, or to push energy into the grid when demand spikes.
On Thursday, he said that two billion Powerpacks could store enough power to suit the world’s demands. “That may seem to be an irrational amount,” he said. “However, it is within humanity’s capacity to do so.”
According to Deutsche Bank, sales of battery storage solutions for households and businesses may bring Tesla $4.5 billion in income. According to research company IHS CERA, the energy storage sector is anticipated to increase to $19 billion by 2017.
Tesla is presently accepting reservations for the systems, with the first deliveries scheduled in August.