Commercial solar battery storage systems have the capability to provide backup power to your business, much like diesel standby generators. These commercial battery storage systems store power to release during periods of power
After the company''s solar and storage business was "shortchanged" in 2021 amid production constraints, Tesla''s CEO said the company is aiming for a "pretty vast" clean
Tesla ‘s energy generation and storage business is booming, despite a dramatic slowdown in its EV sales. The company has reported its highest energy storage quarterly figures on record this week, with a cumulative 4,053 MWh of energy storage capacity deployed in the first quarter of 2024.
The scale of Tesla’s residential solar business isn’t what it once was. Yet, commercial and home batteries still play a key role in the switch to renewable energy sources, as they store intermittently available clean energy for later use.
Tesla doesn’t separate solar and energy storage revenue. More importantly, the cost of revenue for its solar and energy storage business was $781 million, meaning that for the first time the total cost of producing and distributing these energy storage products was lower than the revenue it generated. That’s good news.
However, the beginning of Tesla’s energy storage growth also appears to be the end of Tesla’s solar business. Don’t get fooled by the fact that Tesla’s energy storage deployment was down sequentially from 9.4 to 6.9 GWh. Sequentially, Tesla’s deployment might look bad because it is working on giant battery projects.
Profitability in the quarter was negatively impacted by lower deployments and seasonal weakness in solar energy generation.” Again, I find it a little odd that Tesla lumped storage and solar together in highlighting their combined profit growth, when its just storage that grew while the solar business declined.
What jumped out to me from the shareholder letter was that Tesla’s energy generation and energy storage business is booming. That said, there’s some nuance to this. According to the company, profits from its energy generation and storage division nearly quadrupled in 2023 compared to 2022.
