On May 1, SolarCity Corp (NASDAQ:SCTY) made Tesla Motors Inc (NASDAQ:TSLA) a proposal to purchase batteries for the solar energy storage project for
The decision comes a few weeks after Tesla announced the building of a battery manufacturing plant. The company had hinted that it would venture into the electric energy storage industry by creating solar energy storage plants and home storage batteries. The two companies struck a deal in which SolarCity will now be supplying its customers with the Tesla batteries.
Customers will receive these batteries for as little as $5000. The company will then take care of the installation process, thus giving users access to a constant power supply from these power storage systems.
Jonathan Bass, who is SollarCity’s spokesperson, announced in an email that the battery-nicknamed ‘Powerwall’ will be offered to clients with two payment preferences. The 10 Kilowatt hour battery will be available to buyers with the first option of a nine-year lease in which the client will pay $5000. The second option is for a full purchase where the system will cost $7000.
The solar power company has already begun taking orders, but the installations are expected to commence in October. Due to the high oil prices and harsh economic conditions, skyrocketing electricity bills have continued to be an increasing nuisance to most homes. SolarCity has been experiencing growth due to these factors. Lack of a power storage strategy has been a constant problem facing the company’s services.
The new venture with Tesla promises a viable solution for clean and reliable solar energy for homes, as well as solving the storage problem. The battery package will provide a cheaper energy alternative in the long run.
The need for more reliable sources of power has been good for Tesla and SolarCity. The joint venture came at an opportune time and promised continued growth for both companies especially with the current growing demand for electric power.
A few years back, analysts declared that electric power did not have the relevant infrastructure for its success. Tesla has been very successful in proving the statement wrong through its constant innovations. The company’s venture into solar power storage will be beneficial for future developments as well as benefits to healing economies.
