The Energy Storage Report 2024

Now available to download, covering deployments, technology, policy and finance in the energy storage market

Tesla deployed 6.5GWh energy storage in 2022, ‘thinking carefully’ about next Megapack factory site

LinkedIn
Twitter
Reddit
Facebook
Email

Energy storage deployments by electric carmaker and tech company Tesla grew 64% year-on-year, reaching 6.5GWh in 2022.

Tesla’s fourth quarter 2022 financial results, released yesterday, showed increases in both its solar and energy storage deployments for the quarter as well as for the full year just gone.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

On a quarterly basis, its solar deployments went up 18% from 85MW in Q4 2021 to 100MW in Q4 2022, while storage deployments went from 978MWh in Q4 2021 to 2,462MWh in Q4 2022, a 152% increase.

The company combines the technologies in its revenue figures, making it difficult to assess the relative performance of each segment, but the total equated to US$1,131,000,000 for the previous quarter versus US$688 million in Q4 2021 for its energy generation and storage activities.

Corresponding quarterly costs of revenues in the generation and storage business were US$1,151,000 for Q4 2022 and US$739 million for Q4 2021.

Nonetheless, it continues to represent a fraction of total revenues, with total automotive revenue for Q4 2022 at US$21.3 billion, versus US$15.8 billion total cost of revenues for automotives in that timeframe.

Annual energy deployments, shown in the chart below, show just how much storage has grown since the first launch of the Powerwall residential and Powerpack commercial-scale battery energy storage system (BESS) solutions in 2015.

The stationary storage product range has changed since then, with Powerwall upgraded to its second generation and Megapack, the 3MWh utility-scale units now representing the larger scale end of Tesla’s output. Tesla also hasn’t broken out Megapack and Powerwall deployment figures separately but it appears highly likely utility and grid-scale deployments far exceed residential.

After 2021’s energy storage deployments had seen a 32% year-on-year increase from 2020, Tesla said at the beginning of last year that it was aiming to grow its stationary BESS business during 2022, with demand for products in 2021 “substantially above” production capacity according to executives.

Solar meanwhile, is on what appears to be a much more gradual growth trajectory, and in fact the company’s solar PV deployments were much higher in 2017, the year after Tesla acquired US installer and leasing company SolarCity, when it registered 523MW versus 2022’s 348MW.

Tesla’s annual energy storage and solar deployments, as reported by the company. Solar PV deployments are in megawatts, storage in megawatt-hours. Image: Solar Media.

Understandably, an earnings call with analysts was largely focused on the company’s electric vehicle (EV) business and its progress in developing its advanced 4680 battery cell in-house.

Solar was barely mentioned in an earnings call hosted by executives including CEO Elon Musk, and a question on the controversial solar roof rollout went unanswered.

Conversely, Musk referred to the “record growth” of the energy storage business, which is “continuing to accelerate”. This was reinforced by remarks from CFO Zachary Kirkhorn.

“The Energy business had its strongest year yet across all metrics, led by steady improvement in both retail and commercial storage,” Kirkhorn said.

“While much work remains to grow this business and improve costs, we believe we are on a good trajectory.”

An investor’s question about the growing demand for stationary energy storage – which Musk has previously said could one day become as big a part of Tesla as its vehicles – asked where Tesla will build its next factory for assembling Megapacks. The company’s first, in Lathrop, California, opened last year.

Musk said Tesla would likely provide an update on that in the future, “but it is something that we’re thinking about very carefully,” the CEO said.

Energy-Storage.news’ publisher Solar Media will host the 8th annual Energy Storage Summit EU in London, 22-23 February 2023. This year it is moving to a larger venue, bringing together Europe’s leading investors, policymakers, developers, utilities, energy buyers and service providers all in one place. Visit the official site for more info.

Solar Media will also host the 5th Energy Storage Summit USA, 28-29 March 2023 in Austin, Texas. Featuring a packed programme of panels, presentations and fireside chats from industry leaders focusing on accelerating the market for energy storage across the country. For more information, go to the website.

Read Next

Premium
April 9, 2024
Battery technology startup Alsym Energy is keeping the exact chemistry of its product under wraps for the time being, the company has confirmed to Energy-Storage.news.
April 8, 2024
Investment manager Quinbrook Infrastructure Partners has closed funding for its Valley of Fire Fund, raising US$600 million in capital commitments from what it called “leading US and European institutional investors”.
April 4, 2024
Battery manufacturer LG Energy Solution has started construction on its gigafactory in Arizona, US, which will have 17GWh of production dedicated to the energy storage system (ESS) market.
April 4, 2024
The US government has announced US$4 billion in tax credits for over 100 projects under the Qualifying Advanced Energy Project Tax Credit (48C) scheme.
April 3, 2024
The European Commission has approved a €1 billion (US$1.1 billion) state aid measure for Greece to support two solar-plus-storage projects.

Most Popular

Email Newsletter