Q4 2018: Tesla Deployed 225 MWh Of Energy Storage, 73 MW Of Solar

JAN 31 2019 BY MARK KANE 13

In 2018 Tesla deployed 1.04 GWh of energy storage systems

Tesla announced results for the energy generation and energy storage business, which in Q4 amounted $371.5 million (up almost 25% year-over-year). It’s just a few percent of total revenues of over $7.2 billion and it will unlikely change in the near-future.

The total deployment of the energy storage system is the past quarter stands at 225 MWh (up 57%), while the solar installations decreased 13% to 73 MW.

Tesla energy storage deployed – Q4’2018

Total energy storage deliveries in 2018 stands at 1.04 GWh (up nearly three-times from 358 MWh) and Tesla expects sales will double in 2019 to over 2 GWh.

“While 2018 was predominantly the year of Model 3, our Energy business also reached a significant milestone. In 2018, we deployed 1.04 GWh of energy storage, nearly tripling our energy storage deployments compared to 358 MWh deployed in 2017. In Q4, energy storage deployments reached 225 MWh, a decrease of 6% sequentially, and up 57% compared to Q4 2017. A new manufacturing line made by Tesla Grohmann is further increasing production of Powerwall and Powerpack modules at Gigafactory 1. With a better supply of cells and new manufacturing equipment, we are aiming to more than double energy storage deployments to over 2 GWh in 2019. Through various operational efficiencies, our average sale-to-installation time also decreased by about 50% in 2018.”

Tesla solar deployed – Q4’2018

On the solar front, sales decreased by nearly 38% year-over-year to 326 MW (compared to 522 MW in 2017). Tesla said that it still is in a transformation period (switching sales structure and retreats from leasing model), while the new product – Solar Roof is moving forward slowly.

“We deployed 73 MW of retrofit solar systems in Q4, a 21% decrease sequentially. We are still in the process of transitioning our sales channel from former partners to our Tesla stores and training our sales team to sell solar systems in addition to vehicles. Cash and loan sales made up 75% of residential deployments in Q4, up from 51% in Q4 2017. Likewise, while total deployments decreased by 38% to 326 MW in 2018, cash and loan residential deployments increased from 39% in 2017 to 71% in 2018. This was an important contributor to improving the cash generation and profitability of the solar business.”

“We plan to ramp up the production of Solar Roof with significantly improved manufacturing capabilities during 2019, based on the design iterations and testing underway. In the meantime, we are continuing to install Solar Roofs at a slow pace to gather further learnings from our design changes, as well as about the viability of our installation processes by implementing them in areas around the U.S. that are experiencing inclement weather.”

Categories: ESS, Tesla

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13 Comments on "Q4 2018: Tesla Deployed 225 MWh Of Energy Storage, 73 MW Of Solar"

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Held back by “partner” Panasonic.

I don’t believe that. Panasonic has been a very good partner for Tesla and has ramped up investment in both GF1 & 2 to match Tesla requirements. I am sure they are is close communication to do so. Personally I think Tesla/Panasonic are close to producing a solid state version of the 2170 battery cell and this will require a significant modification to their manufacturing process. They need to make more batteries to meet demand but don’t want to over-supply for a design that is going to be shortly abandoned.

Any new battery tech that’s higher energy would be at least 10x or more expensive.. Probably would take over 10 years for the prices to come down to what current 2170 or 18650 cost, but by then these batteries would be much cheaper.. Lithium-ion batteries used to be crazy expensive!!

That is the big problem with any new battery tech. It doesn’t need to compete with standard batteries now. It needs to compete with prices 5 years from now.

Panasonic has had to been dragged kicking and screaming to be the largest battery supplier in the world, to Tesla.

Nobody wanted to provide batteries for Tesla first Roadster. Every battery producer thought big packs in cars would be huge liability when customers realized batteries degrade rapidly, break easily. Tesla had to do their own tests on battery packs, to prove that they can manage and pamper battery packs in cars on the street. That was huge shift, also because batteries can be used in a way that degrade them fast (smartphones anyone), so there was plenty of negative experience to go around.

Well the 1st quarter of 2019 won’t be very good for solar panels. Cold weather in the majority of the country will definitely keep sales low.
Energy storage though should continue to see increases.

Do Not Read Between The Lines

Solar panel installations are mostly in warmer, sunnier locations. “Winter” is a good time to do it.
A lot of utility solar came online in December. If there’s a decline it would be for tax reasons.

They install solar panels in Minnesota, Illinois. New York, New Jersey so it’s more in warmer climates but just like the days are shorter in Northern states there also shorter in Southern States.

Energy battery systems seems to be a good market, solar is a waste of time for Tesla…

Do Not Read Between The Lines

Solar, batteries and EVs have huge synergies. They do solar for that reason.

They do solar, because Musks ego was to big to see a family company fail.
They will never see that 3billion again and it is a burden for Tesla and its investors. Starting the company from scratch would have been a much better idea.

I will be interested in hearing how the energy storage system performs in the field. Is anyone aware of any published field trials of this system?