Gigafactory batteries could have an impact on the solar power sector
Tesla Motors recently formed a partnership with Panasonic. Through this partnership, Panasonic will be providing technology and services to Tesla’s forthcoming “gigafactory,” which will be responsible for the manufacture of batteries. These batteries are primarily meant to be used in Tesla’s electric vehicles, but they could also have major implications for the solar energy sector. Batteries are becoming very important for the clean energy sector, which is in dire need of efficient and effective energy storage solutions.
New gigafactory may help reduce the cost of batteries by 30% and introduce new storage solutions to the solar field
Tesla’s gigafactory is expected to produce some 500,000 electric vehicles by 2020. The factory will also be responsible for the development of new battery technology that is less expensive than the batteries that are available today. The factory may be able to cut down on the cost of batteries by 30% or more within the coming years. What this means for solar energy is that SolarCity, which was formed by Elon Musk, Tesla’s creator, could also take advantage of the battery technology coming out of the gigafactory.
SolarCity may eventually take advantage of the batteries produced by the gigafactory
SolarCity has managed to establish a dominant position in the solar energy sector, offering leasing programs that have helped make solar power more accessible to homeowners in many parts of the world. Rooftop solar power systems are effective in providing homeowners with electrical power, but if these energy systems had a reliable energy storage system, they could become less expensive and more attractive to consumers.
Lithium-ion batteries are prohibitively expensive for residential energy storage
Modern lithium-ion battery technology is quite expensive despite its widespread use. A typical battery storage solution for a solar energy installation at a home costs approximately $50,000. There are incentives in place that reduce the overall cost of such an energy storage system, but such solutions are still prohibitively expensive for many homeowners. Better battery technology could help solve this problem and bring about more growth within the solar energy sector.