Tesla Motors Inc (NASDAQ:TSLA) has forayed into the rapidly growing storage systems business with the introduction of batteries for companies, homes, and utilities.
The company unveiled Tesla Energy Systems at its facility located close to Los Angeles to a large crowd comprising journalists and business partners.
According to Elon Musk Chief Executive, the company’s main aim is to transform the usage of energy worldwide.
It is part of the company’s vision to offer fossil fuel free clean energy to the homes and companies. The new systems will be part of the solar systems to store energy with the help of solar panels installed on roof tops. It allows the people to generate their energy for powering homes and also to recharge car batteries.
The 6” wide container consists of a Powerwall, the smallest battery of Tesla that can be installed outside the house on a wall or in a garage, for powering the homes. The 10 KWh model is available for sale at $3,500. The home owners will have to pay additional amount for the installation and the inverter.
Tesla has chosen SolarCity Corp (NASDAQ:SCTY) as the installation partner for the new batteries. The company will also rope in other partners for installation of the new batteries.
The company has already commissioned these batteries on a large scale in California with the help of SolarCity Systems.
Tesla to support the utilities with 100 KWh battery block
The company has developed 100 KWh battery block too help the utilities to manage renewable energy. The utilities will be able to generate smooth power from intermittent wind energy sources and solar power to meet the demand at peak time. Tesla has already deployed utility compliant batteries in the California grid.
According to Musk, Tesla will see a gradual increase in margins in 4Q2015. The company will see a considerable profit from the battery business next year.
A senior analyst Karl Brauer at Kelly Blue Book, an auto industries research firm, said the storage energy systems are cost effective and will reap more profits for Tesla.
The batteries production will be initiated next year at its California-based automobile factory. The company will move the manufacturing activity at a later stage to Nevada-based giga factory.
According to Deutsche Bank, the energy storage systems will generate sales worth $4.5 billion from commercial and home segments.
The market for the energy storage industry is expected to reach $19 billion in 2017 from $200 million in 2012.