CEO of Tesla Motors and the leading force behind futuristic ventures like SpaceX and Hyperloop, Elon Musk told electric utility owners that the battery system launched by Tesla will not put them out of business, instead they should purchase it.
Elon Musk explained that most of the consumers in the US will use Powerwall as a backup in the event of a power failure and not a permanent resource for drawing electricity. He was talking to a gathering of utility executives in New Orleans. And he told the audience that electric vehicles like Tesla will only add to the demand for power, less than third of which will be served by distribution generation through solutions like battery storage systems and solar panels.
Tesla’s industrial battery team has been conducting meetings with utility executives for more than 2 years now. However, today was the first time that Musk publicly spoke to the industry at Edison Electric Institute. In April this year Tesla introduced Powerwall for homeowners and businesses which would help consumers reduce reliance on utility grids. He further said that media was confused about the home battery pack which wouldn’t be economical to use as main supply source. Elon Musk believes that 80 to 90 percent of sales will be for larger power pack systems.
The Powerwall is designed to work equally well with both wind and solar electricity generation systems installed by customers for their homes or offices. The consumers can store electricity at peak times and dispense it to overcome the problem of intermittent electricity supply. Tesla has plans for 10 commercial installations with batteries having a huge storage capacity of 11.2 megawatts. The annual global investment in storage solutions is expected to reach a massive $ 5.1 billion by the year 2020.