Tesla Motors Inc. made the headlines last week when it revealed that it would begin sales of its Tesla Powerwall Units in the next three months. News had it that the company was starting to sell Tesla Powerwall units in Australia by the end of this year. Tesla is serious about taking over the home energy storage market and it has started shipping out the devices for homes in a pilot before its starts to roll out the units to buyers by the end of the year.
Ars technica reports that Tesla energy will start shipping its 7kWh Powerwalls, which are designed to be used in homes with solar panels. The 7kWh Powerwalls have a price tag of $3000 and they are cheaper than any rival offering in the market. The firm is on track to start delivery of the units to buyers in North America, Germany, Austria, Switzerland, and Australia in the next couple of months. A Tesla spokesperson was quoted saying, “Over the next few weeks, we will continue to ramp up volume production”.
Huge Market for Energy Storage
Tesla is starting out the sales of its Powerwall units as the home option as opposed to the much bigger Powerpacks that it sells to businesses. Tesla has been selling its Powerpacks to businesses since 2013 but the demand for Powerwall units for homes seems to be growing. One of Tesla’s partners in the energy storage market, TreeHouse co-founder and CEO Jason Ballard noted that “This is really going to transform the way homes are powered”. He goes on to say, “I think in the near future, having a battery in your home will be as normal as having a water heater or a dishwasher.”
Elon Musk hinted earlier this year that it has gotten about 100,000 orders for its Powerwall units. By June when Tesla unveiled its Tesla Energy unit, the segment recorded 38,000 orders for the Powerwall in the first weekend. The orders for the Powerwall units could put more than $800M in Tesla’s pocket in the next couple of months.
Tesla is ramping up Powerwall Production
Tesla is already working towards ramping up its batteries so that it could meet the growing demand for its Powerwalls. The firm is already building a Gigafactory in Nevada and it has signed series of deals with vendors to ensure that it doesn’t run out of lithium for its batteries. Tesla’s success in the energy storage space is already causing other firms to show interest in the space just the same way its success in the EV space is already causing an interest in electric vehicles.