Tesla will expand its business later this year to extend beyond selling electric cars by offering a home battery system.
The Tesla home battery system – called “Powerwall” – absorbs energy during off-peak hours and dispenses it when electricity is more expensive. In doing so, the technology will help consumers reduce their utility bills and ease loads on the power grid.
Powerwall is available in either seven kWh or 10 kWh sizes, the company said in an official statement. The smaller model, which Teslsa says is meant more for daily use, will cost $3,000. The larger unit costs $3,500.
In both cases, Tesla includes a 10-year warranty on the batteries with the option to extend that warranty for an additional 10 years. The Tesla home battery system will begin shipping this summer and requires installation by a technician.
But at-home use isn’t the only part of Tesla’s energy storage business plan. The company is also planning to use large scale batteries in 100 kWh blocks that can be grouped to store 500 kWh to 10 megawatt-hours for larger scale energy storage. Both California and New York are turning to energy storage as a means of unburdening their aging power infrastructures.
Tesla is currently constructing its first “Gigafactory,” a $5 billion facility outside Reno, Nev. that it will use to manufacture batteries and scale down production costs. CEO Elon Musk has siad in the past that the company is planning to build additional factories following the first one, which is expected to come online in 2016.