Late Thursday, the glitzy electric car company Tesla Motors, run by billionaire Elon Musk, ceased to be just a car company. As was widely expected, Tesla announced that it is offering a home battery product, which people can use to store energy from their solar panels or to backstop their homes against blackouts, and also larger scale versions that could perform similar roles for companies or even parts of the grid.
For homeowners, the Tesla Powerwall will have a power capacity of either 10 kilowatt hours or 7 kilowatt hours, at a cost of either $ 3,500 or $ 3,000. The company says these are the costs for suppliers and don’t include the cost of installation and a power inverter, so customers could pay considerably more than that.
The battery, says Tesla, “increases the capacity for a household’s solar consumption, while also offering backup functionality during grid outages.” At the same time, the company said it will producing larger batteries for businesses and utility companies — listing “projects” with Texas-based Oncor and Southern California Edison.
The anticipation leading up to this announcement has been intense — words like “zeitgeist” are being used — which itself is one reason why the moment for “energy storage,” as energy wonks put it to describe batteries and other technologies that save energy for later use, may finally be arriving. Prices for batteries have already been dropping, but if Tesla adds a “coolness factor” to the equation, people might even be willing to stretch their finances to buy one.
[Powering your home with batteries is going to get cheaper and cheaper]
The truth, though, is Tesla isn’t the only company in the battery game, and whatever happens with Tesla, this market is expected to grow. A study by GTM Research and the Energy Storage Association earlier this year found that while storage remains relatively niche — the market was sized at just $128 million in 2014 — it also grew 40 percent last year, and three times as many installations are expected this year.
By 2019, GTM Research forecasts, the overall market will have reached a size of $ 1.5 billion.