Tesla Motors Inc (NASDAQ:TSLA) plans to bring its new batteries to Australia by early next year, making the country its second market outside the US after Germany. As the market for home and business power storage gains momentum, Australia is drawing solar battery makers ranging from Tesla to LG to a market which could be worth $24bn, says Morgan Stanley.
Australia a big market for Tesla
When it comes solar panels, Australia leads the usage, and by 2040 one in two homes are expected to use sun power. While Tesla plans to enter the market early next year, LG Chem will offer its product in August, and Panasonic is expected to enter the region in October.
Michael Parker, an analyst at Sanford C. Bernstein & Co notes that Australia has all what it takes for solar success, such as “high sunshine, high energy prices and low financing costs.” Support from the govt. and falling costs has pushed the solar panels among the Australians, and by 2040 around 6m or half of the Australian homes are expected to be fitted with the solar systems.
LG Chem, which expects the market to grow 15 times in the coming two years, plans to win 30% of the Australian market the Korean firm told Brisbane Times. Apart from Tesla and LG, Samsung SDI is already testing its storage units with a local firm, and is expected to bring it to the market later this year.
“The ability to store the energy that’s generated by solar is a huge opportunity within this market,” a Tesla executive told the news firm. Tesla is planning to partner local utilities or solar makers, in the coming months.
Not all users trust battery storage
Despite the benefits, battery storage do face some snags such as the cost, size and the need for a reliable power source, which as per a study, deter many buyers. In contrast, declining battery costs, rising power prices and improving tech are driving the demand for the batteries. Battery storage will help the homes to store excess power for later user, thus lowering the peak power use, said Panasonic.
Previously, Panasonic told the news site that the speed of roll out may get slowed, but the “Storage is coming” to change Australian energy sector “landscape.”
Giles Parkinson of Clean Technica reported on June 10 that Tesla’s intention to enter the Australian market had already caused prices to fall. Firms already involved in the business in the country lowered their prices to compete with the new product from Tesla.
That piece quoted Andrew Burgess, director of Solar Juice who said that “The roadmap is for reduction of 25 per cent per annum moving forward for the short term. Exciting times.”
On Monday, Tesla shares closed down 0.11% at $279.72, and year to date, the stock is up almost 26%. In the last 12-month the stock is up over 22%.