why tesla’s new energy battery won't replace your local utility - home energy storage system
NEW YORK (TheStreet)--When Tesla (TSLA -Get Report)
Its Powerwall energy-
Last week, the audience prepared a large number of oohs and ahhs for the family.
There are good reasons.
The equipment is designed to use solar energy and wind to power the family (
Probably the size of the small mattress).
But the concept is not suddenly coming out of the left field.
Tesla is widely expected to announce that, despite the higher prices, other companies have been trying to enter the field.
First of all, not everyone can get a lot of sunshine, strong batteries, and even financial resources to pay for them (
10kWh models cost $3,500).
While Tesla's battery price is more than 50% cheaper than many expect, the real cost of this new system is deceptive.
DC is not included in the advertising price-
The AC inverter that makes the energy storage system work.
There is also the cost of installing a trained electrician.
So the real cost is not as attractive as reported.
Although Tesla 10-
The battery is guaranteed for one year and there may be hiccups.
So while there will be more people taking advantage of other sources of energy, the grid is still necessary if only as a backup.
All of this should make it easier for utility companies to breathe.
For Tesla, the risk of producing affordable batteries is high.
The company has made big bets in Nevada to make mass production by producing more cost-effective lithium batteries.
This is the biggest cost of making electric cars.
By turning its attention to another market other than electric vehicles, Tesla hopes to further reduce costs and attract new buyers, including utilities.
But even if the company performs very well at its gigabit plant and is able to mass produce batteries with the highest technical quality, the company must navigate during the current period of rapid innovation.
This requires speed.
There are exciting developments in the battery industry.
These include the liquid metal chemical composition of companies such as Ambri, new super materials such as graphene, and greater willingness to explore the commercial use of hydrogen.
Tesla will have to keep up with these trends while making Powerwall affordable to a large number of consumers.
To be sure, there is a cool factor in Powerwall.
However, it may be a few years away from the massive independence of the grid.