Based on his electric car and solar empire, Elon Musk now aims to change the way households and businesses use electricity.
Later on Thursday, Musk released a striking announcement at the design studio of the automaker in Hawthorne, launching a series of new residential and commercial batteries.
He outlined a vision. the-
Power grid houses, businesses and remote villages powered by sunshine.
"We are talking about trying to change the world's basic energy infrastructure," Musk told about 1,000 Tesla loyal users . ".
"We're going to see something similar to mobile phones and land lines where phones actually cross land lines.
"Providing efficient costs
Effective energy storage will unleash the potential of renewable energy sources such as wind and water, allowing society to reduce carbon emissions and cope with climate change, Musk said.
But analysts say Musk's vision may run counter to market realities in the short term. Most U. S.
Dean Frankel, an analyst at Lux Research, said residential customers do not need backup power unless it is during a power outage.
He said that the battery only applies to households provided by utilities, which allow customers to pay lower energy prices at certain times of the day and at some time of the year, when demand for electricity weakens
How many companies have already bought electricity.
Buying a battery allows them to buy cheaper electricity at night and use it during the day with the highest demand and price.
Tesla has long lined up big businesses as customers.
It is testing with retail giant Wal-Mart. Wal-Mart Stores Ltd. , Target Corp. and Amazon. com Inc.
Amazon is launching a 4. 8-megawatt-
A one-hour pilot at a data center in northern California.
"Batteries are important to the reliability of the data center and the drivers for efficient applications of renewable energy," said Amazon engineer James Hamilton . ".
"They help bridge the gap between intermittent production, such as wind power, and the ongoing power demand in the data center.
"For homeowners with solar energy, the battery makes the most sense.
Excess energy can be used to charge the battery at night or on cloudy days.
But solar users are still connected to the grid, and any remaining power they produce has been recognized by their utilities.
The first product of the automaker will be Tesla Powerwall, which will store 3,500-$10 KW-hours of power.
Typical families use about 30 KW hours a day.
It's a rechargeable lithium.
Based on ion batteries of the same technology as the Tesla Model S sport sedan.
A less powerful version will be sold for $3,000, excluding the installation.
Both will be thin panels, about 6 inch thick and can be attached to the wall of the garage or home.
However, the cost for consumers to operate these devices is much higher.
SolarCity, the solar company that Elon Musk is chairman of the board, will charge a $5,000 prepaid 9-
Annual battery backup service agreement including equipment, control and installation.
Customer can purchase system-
Control and installation included-
SolarCity spokesman Jonathan Bass said the price was $7,140.
Delivery will start this summer with Tesla producing battery packs at its car factory in Fremont.
Tesla will then transfer production to a battery plant in Nevada.
Tesla also plans to sell a commercial version for $250 a kilowatt-
Storage capacity hours.
By getting into the battery business, Tesla is taking advantage of lithium
Peter Asmus, research analyst at Navant research, said the ion battery technology it has developed for cars has entered a growing market.
The utility is happy with the technology because it has had road tests on the car and there are no accidents.
Asmus said Tesla's entry into the market shows how the power industry has grown from dependence on large factories to more distributed forms.
He said the new system will integrate many sources of electricity, including families.
Based on "nanogrids", it stores the energy of the rooftop solar panels and the large micro-grid that serves as an energy bank for communities, military bases and commercial institutions. U. S.
Expenditure on micro-grid projects
Including technologies for energy generation and storage-
Ready to grow from $4 per year.
Between $3 billion and $19 in 2013.
According to Navigant Research, it was 9 billion in 2020.
As these systems become more common, they erode the revenue of power companies.
"This is very disruptive to their business," Asmus said . ".
"It will help
Known as the "utility death spiral", more and more customers insist on using standard utility products, thus increasing the rate of those who are bound by a larger system.
"The decline in prices that homeowners and businesses pay for themselves exacerbated this situation
Generated solar energy.
Now less than 20 cents per kilowatt.
Asmus says this makes it "cheaper to generate electricity on site than to buy coal or nuclear power plants from large, centralized plants far away.
"Energy storage solves the key problems of wind and solar energy.
Unlike oil or natural gas, electricity must be consumed immediately.
The grid must match the power generation to the amount of electricity that people use at any given time.
But only when the sun shines or the wind blows can wind and solar systems generate electricity.
"If Tesla and other companies can significantly expand their energy,
Storage production and lower costs, which could change the rules of the game for renewable energy, "said Laura weislan, senior energy analyst at the relevant league of scientists.
"Imagine that the supply of clean energy can be stored by the way we store natural gas in the tank or in the water behind the dam.
Asmus said: "Energy storage may become a major source of revenue for companies such as Tesla after 2020.
Frankel estimates that the energy storage business will provide Tesla with about $3.
Income for 2020 was 7 billion per cent.
The company has $3.
Revenue this year is 2 billion, almost all from the car business.
But Frankel says Tesla must win the cooperation of utility companies to succeed.
Musk will have to work with utilities to ensure that its solar and energy storage systems can also be used to manage power changes in the grid.
Tesla has started building these relationships and plans to work with Southern California Edison and Oncor on projects that are "excellent demonstration trials, but just a start," Frankel said ".
"Tesla will need to invest more in utilities, which will take time and resources.
"Tesla will get a boost from the California Public Utilities Commission, which has ordered Edison, san Diego gas power and Pacific Gas Power will install or contract 1,325 MW of power storage across the state by 2020.
This will create a huge market for batteries.
Edison has built a small battery farm in Tehachapi.
It can provide eight megawatts of electricity for four hours in a row.
This is enough to power 1,600 to 2,400 households, but is still only a fraction of what PUC requires utilities to provide power.
Like his electric car and solar panel business, Musk's energy storage project is also eligible for substantial government awards. Energy-
Storage projects using Tesla batteries have gained nearly $0. 126 billion in national premium-
Terry Pross, a spokeswoman for the California Public Utilities Commission, said technology incentives.
While this helps now, Frankel said, Tesla must figure out how to get the business running without government support.
But incentives provide a necessary jump. start.
Tesla batteries will force changes in the way they generate electricity, which will be positive, Asmus said.
"Consumers will have more influence, more tools and more flexibility, which will force utilities to change or bear the consequences," he said. "jerry. hirsch@latimes.