Remember when the Tesla Model S was introduced to the global motor industry? Although it took awhile for it to make its mark, it has certainly made a lasting impact on consumers now. When it comes to the introduction of Tesla Energy’s PowerWall battery storage system, though, you can expect a much more dramatic change to occur. Why this major shift? Because of the significant changes that this powerful storage system can make to everyday home and business functions, and because of the cost savings involved.
Tesla’s lithium-ion battery has literally cut the cost of stationary battery storage down to less than half of what it used to be. This is a rather large upset to existing utility companies and fossil fuel generators that hadn’t even begin to imagine that this sort of technology would emerge on a mass market level for at least another decade. Instead, consumers are finding that with a combination of both solar and battery storage, their costs are cheaper than through the grid. This is especially true in areas with the highest electricity costs and excellent sunlight. Although this may not yet be true for all areas of the globe, it’s certainly a fact for nations like Australia and even the US island state of Hawaii.
Australia will be one of the first commercial “test subjects” for the battery storage system. The first Tesla batteries will be delivered to the nation next year, which is sure to stir up a great deal of competition with incumbent utilities. So much so, in fact, that AGL recently announced its plans to completely phase out coal fired generation by 2050, instead fast tracking battery storage offerings to the consumer market at large. The end result is that utility companies are required to scramble in order to remain relevant in this drastically changing market.
It’s completely feasible that, in the near future, regions like Australia could find themselves far more independent of the grid than ever before. The reduction in grid consumption would not only impact home and business owners, but also energy retailers, generators, and network operators. The faster push towards battery storage means the acceleration of the exit of coaled fired energy, and a totally different market landscape. And Tesla’s battery storage will light a fire under other competing battery suppliers to lower their prices, making them even more cost efficient for consumers.
This fast change will also place a sense of urgency on the need to transform unidirectional grids into multi-directional and multi-generation smart grids which, until now, has been a very slow going process. The need for ample solar storage will change all of this, as the status quo is simply unable to manage the commodification of solar and solar storage at the levels that will soon be expected of and required by the consumer market.
The entire future of the energy sector is on the line, with the objective being the disappearance of fossil fuel generators in lieu of battery storage. Be sure to stay current with the latest energy trends, and contact us to get a plan in place for your energy sourcing strategy needs.
While advancements in technology continue toward an energy-efficient world, near term solutions are still complex and expensive. Contact NuEnergy to assist you in solving many of your current energy management needs
