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Energy

How Tesla’s Solar program has become the cheapest in the US

Tesla Solar Panels (Credit: Tesla)

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Tesla’s Solar program has become the most affordable in the United States thanks to numerous developments in the company’s energy sector. During the Q2 2020 Earnings Call, CEO Elon Musk stated that Tesla’s solar panels are now 30% cheaper than the U.S. average. But how the company got to that point comes down to efficiency and strategy within Tesla’s energy sector.

In a video from Matt Ferrell, a breakdown of Tesla’s solar program takes a look at how the company has managed to slash the prices of its panels for customers in the United States. Despite the U.S. having some of the most expensive rates for solar panels and energy production in the world, Tesla has managed to cut the price per watt.

Tesla’s strategy was simple for eliminating costs: cut out wages for sales representatives and allow people to order their solar online.

The reason that U.S. solar prices are increasing is because the “soft costs” of installing the infrastructure on a business or place of residence are high. Soft costs refer to the “non-component costs of the system,” according to Ferrell. These costs include permits, inspections, and hiring salespeople, and they can add up to $1 per watt to every installation.

One dollar may not sound like much, but in the grand scheme of things, it can make solar outfitting unaffordable for some. If a family lives in an average 2,500 square foot home, they would likely need Tesla’s 8.16 kW system. If Tesla had soft costs that had nothing to do with the system itself, this would add at least $8,160 to the price of the infrastructure itself.

Tesla has four different preset sizes for its solar panels. The smallest is 4.08 kW, and the largest is 16.32 kW. With varying incentives through Federal and Local tax credits, those who choose to invest in a Tesla solar panel system will usually spend about 30% less than the national average.

Tesla’s simple online ordering process has helped the company in several ways. In addition to slashing the cost of the company’s solar panels, the company website also helped the automotive side of the business maintain demand through the COVID-19 pandemic.

The axing of a dedicated sales team is not needed for the automotive or energy sectors of Tesla, and it has helped customers save money hand over fist during a tough economic time in the U.S.

For the company, the lowering of prices on any of its products has assisted the growth of the business. Tesla’s stock continues to rise, primarily because of its automotive sector. However, the solar infrastructure is becoming more affordable and is making the myth that powering homes from the Sun is too expensive an old and outdated argument.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on Twitter @KlenderJoey.

Energy

Tesla Energy had a blockbuster 2024

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Credit: Tesla

Tesla Energy has become the undisputed dark horse of the electric vehicle maker. This was highlighted by Tesla Energy’s growing role in the company’s overall operations in the past quarters. 

And as per Tesla’s year-end milestone posts on X, Tesla Energy had a blockbuster 2024.

Tesla Energy’s 2024 milestones:

  • As per Tesla on its official social media account on X, the company has hit over 800,000 Powerwalls installed worldwide. 
  • From this number, over 100,000 Powerwall batteries have been enrolled in virtual power plant (VPP) programs.
  • The Powerwall 3 has officially been launched in the United States, Canada, Puerto Rico, the U.K., Germany, Italy, Australia, and New Zealand.
  • The Tesla Megapack hit over 22 GWh in operation across more than 60 countries across the globe.
  • The Lathrop Megafactory, which produces the Megapack, has been ramped to 40 GWh per year. 
  • The Lathrop Megafactory has also produced its 10,000th Megapack battery.
  • The Shanghai Megafactory was completed in just seven months, and it is ready to start Megapack production in Q1 2025.

Powerwall owners’ 2024 impact:

  • As per Tesla Energy, Powerwall owners generated a total of 4.5 TWh of solar energy globally in 2024. This was equivalent to powering a Model 3 for more than 17 billion miles.
  • A total of 1.1 TWh of energy was stored in Powerwalls in 2024. This protected homes from over 5.8 million outages during the year.
  • Tesla’s Storm Watch feature for Powerwall batteries covered 2.8 million severe weather events over the year.
  • Powerwall owners saw collective savings of over $800 million on utility bills.
  • Virtual Power Plants contributed over 2.2 GWh of power to the grid. This reduced the need for 2,200 metric tons of fossil fuel peaker plant emissions.

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

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Energy

Utah’s rPlus Energies breaks ground on Tesla Megapack battery system

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Credit: Tesla

Utah-based rPlus Energies recently held the groundbreaking ceremony for the Green River Energy Center, a 400 MW solar PV and 400 MW/1,600 MWh battery storage project in Eastern Utah. Tesla Megapacks will be used as the upcoming facility’s battery storage solution. 

At 400 MW/1,600 MWh, the Green River Energy Center is expected to become one of the largest solar-plus-storage projects under development in the United States. Once operational, the facility would supply power to PacifiCorp under a power purchase agreement, as noted in a press release

Utah Gov. Spencer Cox shared his excitement for the project during the Green River Energy Center’s groundbreaking event. As per the Utah Governor, the solar and battery storage system represents a notable step forward for the state’s sustainable energy efforts. 

“This project is being built in rural Utah, by rural Utahns, and for all of Utah. When rural Utah thrives, the entire state prospers. Today, we’re not just breaking ground—we’re building a future of affordable, abundant energy in Utah,” the official noted. 

The Green River Energy Center secured over $1 billion in construction debt financing earlier this year. The facility is also expected to create about 500 jobs, many of which will be filled by local workers. With this in mind, the solar and battery farm would likely prove to be a boost to Emery County’s economy, enhancing tax revenue, strengthening public services, and offering long-term employment opportunities for the area’s residents. 

Sundt Construction will serve as the project’s contractor, EliTe Solar will supply the solar modules, and Tesla will provide the battery storage system for the project. Luigi Resta, President and CEO of rPlus Energies, noted that the Green River Energy Center is special because of the entities that have worked together to make the facility a reality. 

“It’s the partners that make this project special, that have made this monumental project possible. From our equipment providers to the onsite talent, and the support of the local and regional community, we owe this project’s success to each of you,” he stated. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

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Energy

Tesla Energy loses director who brought Autobidder

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(Credit: Tesla)

Tesla Energy is losing a director who brought Autobidder, a real-time trading and control platform that provides value-based asset management and portfolio optimization, to the company.

Rohan Ma, who has been at Tesla for just under eight years, announced he would depart the company on LinkedIn, aiming to take on a new opportunity elsewhere.

Ma posted:

“After eight years at Tesla, this will be my last week. It was a ride of a lifetime! Today, Tesla Energy is thriving and I can confidently say it’s in the best position it has ever been in to drive impact toward the original mission I signed up for. I’m proud to have contributed over the years to where it is now, and will be cheering the team on from the sidelines as they carry the torch forward and continue to relentlessly solve problems at the frontier of the energy transition.”

Ma started as the Senior Manager of Energy Optimization at Tesla back in November 2016. After four-and-a-half years at the position, he then moved on to a new role as the Director of Energy and Software Optimization. He has been in that role for over three years.

The exit of Ma is the latest in Tesla’s tough year in terms of losing high-level employees.

Earlier this year, as a part of widespread layoffs, Tesla eliminated up to 20 percent of its workforce and people like Rebecca Tinucci, who was the company’s Senior Director of EV Charging.

Tesla also lost Rohan Patel, Vice President of Global Public Policy and Business Development, and Martin Viecha, who was Head of Investor Relations, are just a few notables to depart.

Autobidder

Tesla’s Autobidder platform helps owners and operators make money by autonomously monetizing battery assets. It is a real-time trading and control platform that maximizes revenue according to business objectives and risk preferences.

Tesla Megapack, Autobidder to be deployed in big battery project in Queensland

Autobidder already has hundreds of megawatt-hours under management and continues to scale. It is hosted on Tesla’s secure cloud infrastructure that is engineered to handle large and complex computations.

Without Ma’s expertise, Autobidder would likely not be involved in Tesla’s Energy division at all, and although it is not frequently discussed, it is still a major part of the business’s growth over the past several years.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

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