What does Tesla mean for the future of clean energy?

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On June 10, 2020, Tesla became the world’s most valuable car company. In 2022, the company deployed more than 1.31 million electric vehicles (EVs) globally. In January 2023, Tesla cut its EV prices by up to 20% and plans to lower them further. 

While the world’s most valuable car company is an undisputed leader in the EV sector, it also plays a vital role in the greater clean energy space. Tesla plans to expand its clean energy products through constant innovation in the coming years. Its emphasis on manufacturing and revolutionizing clean energy separates Tesla from other car manufacturers and green tech companies.

Tesla’s clean energy products and services

Solar

Tesla entered the residential solar space after it purchased California-based clean energy provider Solar City for $2.6 billion in 2016. Today, Tesla Energy is one of the largest full-service solar installers in the U.S. According to the company, it installed 500,000 solar panels and solar roofs, or an estimated 4 GW of solar capacity, by the end of December 2022. The company manufactures in-house solar components like panels, inverters, battery storage systems, and solar shingles. 

Solar shingles have gained popularity since Tesla introduced its Solar Roof brand in 2016. Such shingles are essentially solar panels built into a traditional asphalt shingle roof, providing a more aesthetic appeal. 

With a firm footing in the clean energy space, Tesla increased solar installations by 68% between 2020 and 2021. Cost-saving and environmental concerns are some of the main reasons why residential solar panel installations have grown in recent years despite the COVID-19 pandemic and supply chain constraints. Tesla understands the future of clean energy needs to be reliable and affordable. 

Residential solar batteries

Batteries are integral to the transition to clean energy. Users can access stored solar energy at night and during power outages. Energy storage also reduces reliance on the grid during peak demand hours. Tesla has gained a significant competitive edge in the battery storage industry since it started its battery business in 2015. 

The popular rechargeable lithium-ion Powerwall battery system is essential in helping residential customers adopt clean energy. Homeowners can store solar energy as a backup during expensive time-of-use hours, power outages or to offset high energy costs. Powerwalls can be installed with Tesla’s solar roof or panels or separately from a Tesla Certified Installer. A Powerwall can operate in high humidity and sub-freezing temperatures, adding more resilience and durability to battery life. 

While it’s considered one of the top solar batteries for residential solar system owners, it’s a more expensive storage option.  Tesla’s battery storage installations increased by 32% between 2020 and 2021 to meet growing consumer needs. The company sold more than 200,000 Powerwall batteries in 2021 alone. Tesla plans to invest in producing battery cells and packs in the U.S., further cementing its role in the clean energy industry. Greater reliance on residential solar batteries can contribute to the clean energy transition by reducing the dependence on electric utilities, which still heavily rely on fossil fuels for power generation.

Utility-scale batteries

Tesla Energy introduced its rechargeable battery storage system Powerpack for the commercial sector in 2013. While it initially started with a 100-kWh capacity, Powerpack now has over 200 kWh capacity. Utility companies use Powerpack to meet their small grid storage needs. This battery also powers resorts and entire islands.

Seeing the success of its energy storage products, Tesla Energy unveiled Megapack in 2019. This massive battery system with a 3-megawatt-hour (MWh) capacity can provide energy to nearly 3,600 homes for an hour. Megapack is designed for significant utility-scale purposes to stabilize the grid and avert blackouts. Manufactured in Tesla’s Giga Nevada factory, Megapack is easy to install and reliable with 24/7 monitoring by Powerhub, an innovative monitoring and control software for large-scale utility plants and microgrids. Due to solid demand, Tesla Energy plans to increase the production of the Megapack batteries in its new factory in Lathrop, California. 

While all of Tesla Energy’s batteries use lithium-ion, the most common rechargeable battery chemistry, the company stated in 2021 that it would switch to lithium iron phosphate (LFP) due to its durability, safety, and affordability. The shift became necessary because lithium-ion batteries heavily use cobalt and nickel — expensive minerals that have been hard to procure in the global market due to supply chain constraints since the start of the COVID-19 pandemic. Tesla’s batteries will be cheaper to manufacture with LFP chemistry than lithium-ion.

Tesla’s battery storage installations, including residential Powerwall and commercial Megapacks, reached a record-breaking 2.1 GWh by the end of the third quarter of 2022. 

Large-scale batteries have become a critical solution to storing renewable power generation in recent years. They are crucial to addressing the intermittency of renewables and ensuring energy supply stability. In many cases, utility-scale batteries are making base load energy generation unnecessary to sustain power in the grid. Base load energy is the minimum electricity production from a specific power source, like coal or natural gas, which can continuously supply a minimum amount of energy to a power grid. Batteries can lower the need for a base load power generation from a single fossil fuel source.

With public and financial backing, Tesla has the necessary resources to accelerate the adoption of clean energy technologies. In the coming years, Tesla’s impact on the environment could be huge as hundreds of thousands of consumers switch to electric cars and adopt clean energy products like solar panels, solar roofs, and batteries.

Interested in solar batteries?

SaveOnEnergy partners with Haven Energy to bring you options for solar batteries. Adding storage to your solar system can protect you from power outages or periods of lower production. We’ll work with you to determine how many batteries are best for your home.

Tesla’s rise to the top

• 2004: Elon Musk invested $6.5 million in Tesla
• 2006: Tesla’s first EV Roadster hits the roads
• 2010: Tesla went public priced at $17 per share
• 2011: Model S is introduced
• 2012: Tesla launched Superchargers
• 2013: First Gigafactory opened in Nevada
• 2015: Tesla unveiled Powerwall and Powerpack
• 2016: Tesla acquired SolarCity and launched its clean energy business under Tesla Energy
• 2017: Model 3 is launched
• 2019: Model Y and Cybertruck are unveiled and Giga Shanghai opened
• 2021: Tesla exceeded a trillion-dollar valuation
• 2022: Tesla continued to be a dominant EV seller in the U.S. and opened new Gigafactories opened in Berlin and Texas
• 2023: Tesla unveiled sustainability plan called Master Plan 3