The batteries of Tesla Motors would be used to help SolarCity complete its project in Hawaiian Island, Kauai.
Tesla CEO Elon Musk’s SolarCity has chosen batteries manufactured by his company to supply 13 megawatts of power storage for solar panels to be developed on Hawaii’s island Kauai.
The combined power and solar storage technology is pioneered to provide Kaua‘i Island Utility Cooperative (KIUC), dispatch able power during the evening, and at a time when sun has gone down.
KIUC has signed a 20-year agreement with solar energy supplier to purchase solar power by paying an economical price of $0.145 per kWh. SolarCity has selected the automaker as its supplier of batteries. The venture now needs to be approved by the Hawaii Public Utilities Commission.
In April 2015, Elon launched a set of batteries for storing electricity to electrify businesses, utilities, and houses, marking expansion of Tesla beyond electric vehicles with battery technology that he stated would “fundamentally change the way the world uses energy.” The machinery allows homeowners and businesses to store electricity and lower down the dependence on utility grids for power.
The agreement with KIUC and SolarCity has given momentum to Tesla Energy and Elon said utility scale agreements are capable of contributing to 80% to 90% of sales revenue earned by the business division.
Tesla Powerwall, which can be fitted in house garages, has made huge interest from customers but the larger market is for the Powerpack, which decreases dependence of utilities on expensive services that are only provided in times when the demand has reached peak levels.
The solar power producer’s agreement is also showing how two companies are capable of joining to explore more opportunities to expand in two comparatively nascent markets.
In California, a historical power storage mandate requires Southern California Edison of Edison International, San Diego Gas & Electric of Sempra Energy and PG&E Corporation to jointly purchase the capacity to store 1.3 gigawatts of electricity by the end of 2020.
New York also turned to storage for relieving congestion on plants and transmission lines to let the ageing power producing plans potentially retire.
Tesla took its own lithium ion batteries used by it for powering vehicles for long and repackaged them to use with solar panels, connected to buildings or power grid. Since 2010, Tesla has worked with the Solar Company to install battery pilot ventures for homeowners, utilities and commercial buildings. In 2015, it officially aimed to deliver such batteries as the small sized Powerwall and the bigger Power Pack, under a new unit known as Tesla Energy.
Recently, the company said its battery plant in Nevada is currently manufacturing grid batteries. In other news, Tech insider reported that Tesla has tied up with US toy manufacturer Radio kids to develop a kid sized Model S for youngsters.