Tesla Energy is the clean energy subsidiary of Tesla, Inc that develops, manufactures, sells and installs photovoltaic solar energy generation systems, battery energy storage products, as well as other related products and services to residential, commercial and industrial customers.
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Tesla Energy has developed a software ecosystem to support its hardware products.
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In November 2013, Tesla Energy announced that it would build Giga Nevada, a factory to produce lithium-ion batteries.
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Shortly after the acquisition announcement, Tesla announced that it would be building a new version of its Powerwall battery energy storage device and introduced the Tesla Solar Roof, a solar shingle product.
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Tesla Energy shifted its business model compared to SolarCity, with Tesla saying that it was focusing on projects with higher margins, such as those that include a Powerwall.
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Tesla Energy says the business model was enabled by a decision to eliminate door-to-door sales, advertising, and some complex financing instruments .
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In May 2021, Tesla Energy announced that it would only sell its popular Powerwall to customers who purchased a Solar Roof or solar panels, and later that year announced that all Solar Roof or solar panel customers would be required to purchase at least one Powerwall.
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Tesla Energy develops, builds, installs and sells solar energy generation systems, battery energy storage products, as well as other related products and services to residential, commercial and industrial customers.
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Previously Tesla Energy used panels from Panasonic as part of a larger partnership between the companies.
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Additionally, Tesla Energy offers systems to commercial customers in California.
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Tesla Energy says that by offering standardized system sizes, it can lower prices by streamlining designs, permitting and logistics.
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Tesla Energy uses proprietary mounting hardware on rooftops that eliminates the need for mounting rails and utilizes skirts that hide the hardware and make the panels appear to be flush with the roof.
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Tesla Energy manufactures, installs and sells a solar shingle product it calls the Tesla Solar Roof.
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The product was first unveiled in August 2016, but Tesla Energy was only able to start producing the Solar Roof in volume in March 2020.
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Tesla Energy says the Tesla Solar Inverter builds on the technology it developed for the Powerwall and electric car inverters.
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Tesla Energy's Powerwall+, introduced in April 2021, includes an integrated Tesla Energy Solar Inverter.
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Additionally, starting in late May 2021, Tesla Energy requires all new solar panel and Solar Roof customers to purchase at least one Powerwall with their system.
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Tesla Powerpack and Tesla Megapack are large-scale rechargeable lithium-ion battery energy storage devices intended for use by a business or an electric utility company.
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In July 2021, Tesla rolled out a beta "Virtual Power Plant" program which allows enrolled California residential Powerwall customers to send excess power back to the grid during periods of peak energy usage .
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Multiple shareholder groups filed a lawsuit against Musk and Tesla Energy's directors, claiming that the purchase of SolarCity was done solely to benefit Musk and came at the expense of Tesla Energy and its shareholders.
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Tesla Energy directors settled the lawsuit in January 2020, leaving Musk the sole remaining defendant.
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Tesla Energy denied the allegations of contravening whistleblower protections and, in June 2020, the case was dismissed with prejudice.
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At around the start of the lawsuit, it was revealed that Tesla Energy had initiated a secretive program, "Project Titan", to replace solar panel parts that could cause fires.
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Tesla Energy said that it believed Project Titan was successful in addressing issues with the connectors and their higher rate of failure.
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Tesla Energy said that it would "be prioritizing customers based on the order in which they accept their updated agreements, " potentially adding time for customers who had waiting for months or a year for their new roof.
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