Tesla Motors Inc (NASDAQ:TSLA) is set to launch its home-powering Powerwall battery units in the US but it will surely find some stiff competition.
In fact, Germany’s Sonnenbatterie has already set foot in the American market by placing several battery products – one of those is a plug-and-play battery system which is expected to most fiercely compete with Tesla-branded Powerwall. According to pv-magazine, Sonnenbatterie produces its storage units in San Jose, California and has already grabbed supply contracts with 30 dealers in the country: a further confirmation of the company’s strong presence in the US market.
Tesla Motors is not struggling just yet. In the stock market, Tesla is performing well and it closed the year up by 5.35% compared to the previous year. Moreover, it has already grabbed enough pre-orders for Powerwall batteries that the product is sold out for the first six months of 2016. Nevertheless, Tesla still has not announced an official date for the delivery of its battery products, which are likely to arrive in the US market by January 2016. Battery rivals, such as Sonnenbatterie, have therefore some time to up their game by increasing production and trying to benefit from a certain first-mover advantage in a market which is expected to grow fast in the near future.
Nevertheless, Tesla still has not announced an official date for the delivery of its battery products, which are likely to arrive in the US market by January 2016. Battery rivals, such as Sonnenbatterie, have therefore some time to up their game by increasing production and trying to benefit from a certain first-mover advantage in a market which is expected to grow fast in the near future.
In an effort to benefit from this situation, Sonnenbatterie plans to boost its production at its San Jose facility even though that location is already at full capacity. It also plans to start a virtual network that could link people with photovoltaic arrays and solar systems to battery owners so that it could enable them to trade or share their total solar power. According to the Chief Sales Officer of the company, Philipp Schroder, all the surplus electricity generated by PV will be distributed among individual members if not utilized by households. There is also an option for the electricity to be traded on the wholesale market. That is some serious competition right there.
According to the Chief Sales Officer of the company, Philipp Schroder, all the surplus electricity generated by PV will be distributed among individual members if not utilized by households. There is also an option for the electricity to be traded on the wholesale market. That is some serious competition right there.
And there’s more. The flexibility of Sonnenbatterie’s products ranges from the solar power charging option, the freedom for households to customize their use of power from these batteries, the possibility for home owners to monitor their electricity usage from a computer or smartphone. The plug-and-play system also includes an inverter, along with measurement and control technology, in order to match the product offerings up to Tesla’s Powerwall.
Tesla Motors proudly launched its battery products back in April with a grand event and abundant involvement of the media. But what do Tesla batteries offer? They provide solutions for households to cut their electricity costs with the use of stored energy during peak hours, when the grid electricity charges are relatively higher. And how much? Tesla Powerwall costs $3,000 for seven kilowatt per hour (kWh) and $3,500 for the 10kWh variant, with the obvious exclusion of the additional costs for installation and for the inverter.
The two competitors are battling in German territory as well, with Tesla Motors which recently started to take preorders for Powerwall in the European state. Tesla has made Origin Energy its official supplier for Powerwall systems in that country and it has also signed deals with other local companies such as Natural Solar and CSR Solar, to ramp up battery supply in the region.
In conclusion, 2016 will be an exciting year for the energy market. And for once we are not just talking “oil”.
