J.B. Straubel, Chief Technology Officer at Tesla Motors Inc (NASDAQ:TSLA) has stressed that solar technology is vital for popularizing the production of solar energy. On the sidelines of extolling the energy density and the use of lithium-ion batteries in electric cars at an Intersolar Opening Ceremony in San Francisco, he said cheaper electricity is possible in 10 years.
The technology will ensure the availability of renewable electricity from Wind and Solar even if the wind or solar is not available. The grid operators and the utilities in the U.S. and California are scrambling to mobilize energy storage services to comply with the regulatory requirements. It ensures smooth operation of the grids.
Cheaper electricity in the 10 years is in sight following the estimated drop in the prices of batteries and wide availability of solar panels to meet the energy demand. The Tesla CTO is banking on the establishment of a big lithium-ion battery firm that will become operational next year in Nevada.
Its manufacturing capacity will be enhanced to 50 Giga Watt-Hours by the year 2020. Tesla will source the cells for the batteries from Panasonic Corporation (ADR) (OTCMKTS: PCRFY). The 50 GWh energy is sufficient to operate around 500,000 electric cars of Tesla.
Tesla has introduced two battery packs for the utility and business customers and for the households in May 2015. The company has already bagged a sizeable number of orders after the introduction in May.
The prices of seven or ten KWh versions of the Powerwall are in the range of $3000 to $3500 excluding the inverter and installation charges.
According to a Spokeswoman, at Tesla Motors Inc (NASDAQ:TSLA), it will charge $250 for each KWh for the batteries and $500 for the whole system for the utility and business customers. The prices are likely to be slashed by the year 2020 to $300 for the entire system.
Apart from Tesla, other 11 firms are eyeing the energy storage market in the U.S.