Tesla (NASDAQ:TSLA) is well placed to reap the benefits of rapid moves towards energy storage in a new renewables environment. The Trump Administration’s withdrawal for the Paris Accords is effectively being ignored by the rest of the world.
My article in March outlined the company’s potential strengths and opportunities. Since then Tesla’s offerings have started to be ramped up by the company. There is little doubt about the potential but also little doubt that this will be a competitive market. For instance a similarly vertically integrated company, BYD Co Ltd (OTCPK:BYDDY), is already making inroads in this area and other Chinese companies may be fierce competitors.
Developments in the US
It is no coincidence that at the Stockholders Meeting this week, Elon Musk focused on the total energy storage offering.
As he referred in his address:
“The beginning of the transition of Tesla to a fully integrated sustainable energy company where you have solar creating energy, then the stationary battery pack, the “Powerwall” and “Powerpack”storing the energy and then that energy being used in the electric vehicle.”
All these applications can be linked together now for the consumer by a mobile phone app.
Doubters have considered that there will not be demand for homeowners to install big expensive batteries in their residences. In the past net metering had meant this was largely the case. If a homeowner saved energy during the day through, say, solar panels, this could be sent back to the grid and therefore there was no point in storing it via an expensive battery.
However utilities in the US are now starting to offer deals to compensate for energy storage. Batteries will start to be used not just for back-up power but will allow for integration with utilities.
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