Tesla is making a significant positive impact on the environment with its products, and its Solar and Storage Products are able to generate and store renewable energy from the sun, giving customers energy independence. In its 2021 Impact Report, the manufacturer shared the main aspects of the development and impact of its solar and storage products.
Commercial scale customers: Megapack and renewables
Tesla pointed out that the benefit of selling commercial storage systems like Megapack is that buying such a product is almost a purely mathematical decision for customers. If installing Megapack makes economic sense, there is no reason not to install it. One Megapack has an average of 3,000 kWh of battery capacity and can handle projects over 1,000,000 kWh. To meet the demand for energy storage products, which far outstrips supply, in 2021 Tesla has begun building a new manufacturing facility capable of producing 40,000,000 kWh of energy storage per year.
Pairing energy storage with renewables enables cost-effective decarbonization of the grid
Energy independence is one of the most important aspects, both for individual households and for organizations and entire states. The best way to avoid a potential power outage is to reduce dependence on the grid. Tesla's products allow customers to go offline to meet a wide range of needs. Tesla sold 4 GWh of energy storage products in 2021, representing over 15% of the global 25 GWh market. The company said some of these projects were massive, including a 371 MWh plant in California, USA, and a 497 MWh plant in Victoria, Australia. Tesla estimates that in order to switch global energy use to renewable sources, global annual battery production would need to increase to around 10,000 GWh.
Residential customers: Solar Roof, solar panels and Powerwall
Any household can significantly reduce their carbon footprint by installing a solar roof or solar panels and adding Powerwall to the system. Tesla points out that, in theory, all domestic electricity needs in the US, as well as vehicle needs, can be met by sunlight alone. The manufacturer is aware that the installation of such a system should be financially beneficial for the customer, and provides some calculations. For example, in Massachusetts, an average solar array and storage system pays off in energy cost savings in about 10 years. As the cost of these products continues to decline, more customers will be willing to switch to solar and storage solely because of the lower overall cost.
Source: Tesla 2021 Impact Report
Grid outages are becoming more common
Unfortunately, Electrical disturbances in the U.S. are becoming more common, predominantly due to weather and natural disasters, mainly due to climate change. According to the US Department of Energy, electrical disturbances cost businesses $150 billion a year. This has caused homeowners and businesses to increasingly turn to backup power options. Tesla's products are a great way to cut emissions that affect climate change, as well as provide backup power during blackouts.
Low cost is the key to mass adoption
Tesla is constantly working to reduce the cost of its products in order to facilitate their mass adoption. The manufacturer is confident that ultimately, battery-powered renewable energy will become the cheapest energy option available, regardless of location. As the cost continues to drop, more customers will be able to benefit financially from turning to renewable energy.
Source: Tesla 2021 Impact Report
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