Technology

Tesla Motors Inc Plans To Power Your House With Its Battery

Tesla will soon come up with home batteries which could help users lower their utility fees by going “off-grid”

Tesla Motors plans to offer a home battery that can be used in houses or business very soon, CEO Elon Musk told analysts during the company’s earnings conference call on Wednesday. Musk mentioned that the product could be showcased in a couple of months.

Tesla Motors Inc Plans To Power Your House With Its Battery

Tesla eyes a bigger market

“We have the design done, and it should start going into production in about six months or so,” Musk said. “It’s really great.”

The EV manufacturer is already offering residential energy storage units to limited customers via SolarCity, the solar-power company of which Musk is chairman and also the biggest shareholder. To cater to the needs of businesses and utility clients, Tesla’s Fremont facility is also working on larger stationary storage systems for businesses and utility clients. The automaker has already deployed a massive storage unit at its Tejon Ranch Supercharger station at Interstate 5 in Southern California and has various other commercial installations in the field, according to a Bloomberg report by Dana HullMark Chediak.

However, Tesla now wants to tap the larger market, which is the utility market. Chief Technology Officer JB Straubel told analysts during the earnings call that there are a number of utilities working in this area, and Tesla is in talks with almost all of them.

“This is a business that is gaining an increasing amount of our attention,” Straubel added.

To compete with traditional electric grid

Tesla Motors is known for its Model S sedan and now is monetizing its know-how of lithium–ion battery technology with the aim of standing as the frontrunner in the fast growing energy storage market, which is enough to support and eventually compete with the traditional electric grid, says the Bloomberg report.

If solar panels are paired with large, efficient batteries, it would be sufficient for some home owners to cut down on buying electricity from their utility companies. A positive for Tesla is that California considers energy storage as an efficient tool to manage the electric grid in a better way.

Morgan Stanley mentioned last year that Tesla’s energy storage products could be “disruptive” in the United States and Europe as customers are willing to reduce their utility fees by going “off-grid.”

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  • Joel Faltermeier

    Agree, although I expect that they may be able to be more competitive than the other big brand batteries with price/capacity due to the gigafactory, using locally sourced materials, more efficient manufacturing, less middle men, etc. However at a huge upfront cost getting this all going. Time will tell if this pans out – although I am hopeful it will for the sake of jobs in the US, economy, and more pressure on competitors to compete/innovate.

  • Max Pelletier

    Are you concerned about your cellphone battery?Tablet battery? Laptop Battery? Even my electric shaver has a lithium battery… Of course therer will be minimal safety regulation to apply for a big powerpack stored in the basement or something, just like any stove/power panel/refrigerator/heating unit/generator. Its just common sense. Just that there won’t be health concerns like for storing car batteries….

  • Jazzenjohn

    I expect they will make a profit, but it will be a small one. Why? Because batteries are commodities, pure and simple, and commodities have compressed profit margins. No one really cares if the batteries are Panasonic, or Saft, or, LG, or any of dozens of others, they care about price and capacity.

  • Jazzenjohn

    So? Lithium batteries need to be kept heated and need extra attention concerning fire safety. All battery formulations have their own conditions/requirements/peculiarities.

  • Jazzenjohn

    It isn’t going to be anywhere near as disruptive as they suggest, that is, until battery cost per WH of capacity goes down about another 70-80%. At that point it becomes much more cost competitive with ICE on cars, and for the relatively small cost savings between on and off peak electricity. Completely off grid systems are very expensive but it is also very expensive in some areas to get connected as well. It can make economic sense now for those areas, even without considering whether it is Green or not.

  • Joel Faltermeier

    Good point. Energy density is more important in some applications, and cost generally goes up dramatically as energy density increases. I’m skeptical on this one, but they have a chance of pulling off making this economically pheasible while still turning a profit.

  • Max Pelletier

    Batteries in home needs to be in a well ventilated area because Alkaline Acid, or NkCd produce harmful vapors. Not the case with Lithium.

  • Ammon Ammon

    “Tesla’s energy storage products could be “disruptive” in the United States and Europe as customers are willing to reduce their utility fees” So as technology and innovation open the door to efficiency, sustainability, and (god forbid) cost savings for consumers we need to stifle it for fear of disrupting status quo and outmoded systems?

  • Jazzenjohn

    Using batteries for off grid storage has been done for decades. The only difference is the type of battery, and Lithium batteries have been used for at least 5-6 years as storage cells in places where it makes economic sense, usually boats, where the weight of Lead Acid batteries is a drawback. In a home, the weight of the battery pack makes relatively little difference.