Tesla Unveiling Home Storage Product In ~1–2 Months

  • Published on February 14th, 2015 by

We’re gonna unveil the Tesla home battery, or consumer battery, that will be for use in people’s houses or businesses, fairly soon. We have the design done, and it should start going into production probably in about six months or so.

We’re trying to figure out a date to have the product unveiling — it’s probably in the next month or two. It’s really great. I’m really excited about it.

tesla-storage-unitThat was Elon’s statement regarding the next step of electricity storage for Tesla Motors. Of course, this product is sure to be available with SolarCity solar panels, as well as separately.

So, without more details until the unveiling, we can’t provide much more info. However, a bit of context could be helpful.

Within the electric vehicle market, Tesla is expected to be using the lowest-cost batteries. The battery cells come from Panasonic, while Tesla turns them into battery packs. There’s a lot of competition in the electricity storage market, but there’s a good possibility that Tesla could offer some of the most competitive consumer batteries on the market.

As of right now, it makes little financial sense for the large majority of people who go solar to also get a battery storage system and go off the grid. However, it is widely expected that, with solar panel costs continuously coming down and battery costs doing the same, that day could come about for millions, tens of millions, or hundreds of millions of people before too long.

For now, it would be assumed that these Tesla batteries would be targeted at homeowners interested in backup storage in the case of an electricity outage, or for people who are way off the grid and would have to pay hundreds of thousands of dollars to have the grid extended to them. But, who knows, perhaps the cost of Tesla’s batteries is even better than most of us think….

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About the Author

is the director of CleanTechnica, the most popular cleantech-focused website in the world, and Planetsave, a world-leading green and science news site. He has been covering green news of various sorts since 2008, and he has been especially focused on solar energy, electric vehicles, and wind energy since 2009. Aside from his work on CleanTechnica and Planetsave, he's the founder and director of Solar Love, EV Obsession, and Bikocity. To connect with Zach on some of your favorite social networks, go to ZacharyShahan.com and click on the relevant buttons.
  • Pencil Licker

    What is the cost of 5 KWH of battery storage?
    What is the cost of 5 KW of peak solar generating capacity?

    • Wayne Williamson

      The 5kwh battery is probably around 10k. I think tesla is getting the “raw” at around 1.7 a watt hour. A 5kw solar array from renology is on amazon for around 5.6k.

    • I’m eager to find out.

  • MyFringees

    Zach, I think the cost of these batteries could be big news. Wondering what they will be at peak Tesla Gigafactory production.

    • I know Tesla/Elon was aiming for $100/kWh or lower at some point, but forget what year that was targeted for.

      • Alibaba Neue-Welt

        the raw material cost of Lifepo4 batteries are around 140$ kw/h , a price about 200 $ would be wounderful .
        Here in Europe we cant produce under 250$ , thats our limit of self cost , without profit .

  • Bryan

    Yes, but what’s the cost ? Lithium ion batteries would have to drop to around $100 per kWh in order to make residential storage applications (self consumption) pencil out.

    I don’t see that happening for several years. Solar leases and PPAs are already far more expensive than the pricing that competitors are offering on purchased systems. Add the cost of an expensive Li-ion battery pack and you can forget about any savings when compared to the utility company’s current rates. Sounds more like hype to me.

    • neroden

      Mmmm, it depends. A third of my utility bill is fixed-cost charges related to the connection, not proportional to usage! People who have very low electricity usage may find this happening, and may find that the savings on fixed charges from cutting the connection pays for the relatively small batteries they need.

      At the moment, off-grid solar + batteries already pencils out to breakeven for me…. except that my roof is too small to actually do it. And then there’s the snow clearance problem. So I’m waiting for higher-efficiency solar panels, and considering ground-mounted panels (which cost extra around here for permits).

      • Yeah, there are some small markets opening up. And people who just want the extra electricity security. We’ll see. Curious what the price will actually be.

        • vensonata

          (I’ve also posted on the more recent conversation you had about this with Chris.) I suggest the price cannot be under $5000. That’s pretty good value, if the pack includes battery management system (it really must) and inverter. That comes in at $500 kwh total system. Anybody with lead acid will know that because of high cycle (probably 5000) it completely trashes lead acid at $150 kwh.(1000 cycles, just do the math!) This thing is elegant while lead acid is 19th century scary. By the way, I’ve lived off grid with lead acid battery and PV for 15 years. As I type on a mac notebook with a lithium battery instead of a mechanical Underwood typewriter, why would I still use lead acid?

  • omerghani

    Hi Zach. Qmega (www.qmega.ae) is a startup in Dubai that has developed a proprietary control system called the QMICC. QMICC based PV solar systems enable 24×7 energy independence delivering power at around US$ 0.08/kWh for the purchaser. The QMICC (1) handles torque load independently (which is globally unique) and (2) has a proprietary charging technology that reduces storage costs significantly, amongst a whole host of other globally unique functionalities. We have installations that are running factories, warehouses, labour camps, farms, homes, offices – completely on our system, and completely off-grid. Our storage runs around US$ 250-275/kWH, and have systems using up to 300 – 400 kWH. Soon we will have a couple of industrial applications up and running with storage around 1 MWH each. We are rolling our systems out in the Middle East, West Africa, Pakistan and soon in Denmark, Germany and Greenland. We hope to be providing even more cost-effective solutions to global customers during 2015. I am sure you will be reading more about us very soon.