News: Energy

Tesla’s residential Powerwall and commercial Powerpack battery storage units are becoming invaluable for residents in Elmsdale, Nova Scotia, Canada.

The batteries are a key part of the ongoing Intelligent Feeder Project, a partnership between the Nova Scotia power and Opus One Solutions through a grant from the Sustainable Development Technology in Canada. The program is a test to determine the viability of battery storage units as a potential backup for Nova Scotia’s energy grid, both in the micro and macro level.

For the micro level, ten Elmsdale homes that are part of a microgrid had Tesla Powerwall 2 units installed. At the macro level, Tesla Powerpacks were deployed at the Elmsdale substation are storing energy generated by wind turbines located at Hardwood Lands, NS. The commercial batteries are expected to be a good fit for the region’s grid, as 19% of Nova Scotia’s electricity is already being produced from wind turbines.

Nova Scotia Power project manager Jill Searle highlighted the potential of the initiative in a statement to Truro Daily. “We wanted to see if we could use batteries, not just in customers’ homes, but also to see if they could provide reliability with wind integration for a whole distribution circuit,” she said.

An opportunity for the Tesla batteries to prove their value emerged on January 4, 2019, when the region was faced with a 5-hour power outage during the height of a snowstorm. Apart from seeing uninterrupted power, several homeowners with the Powerwall 2 also observed that their batteries still had over 85% by the time power came back on. Elmsdale residents Mac and Anne Noble, whose home was fitted with a Tesla Powerwall 2 battery, shared their experiences during power outages.

“When the power goes out, it’s completely instantaneous. The (desktop) computer I have over there, it didn’t even flicker when it went out,” Mac Noble said.

For the senior program manager, Tesla’s batteries are showing signs that they can perform very well. “This project, for us and for me personally, has been fantastic. We’ve had a lot of industry interest in this because a lot of jurisdictions are talking about storage as a utility asset, but not many are actually doing it. We’re one of the few who are. We are leading edge on some of this work, which is really exciting,” she said.

The pilot program for the Intelligent Feeder Project is scheduled to run until the end of 2019. The Powerwalls and Powerpacks used in the program are expected to remain deployed even after the pilot program ends.

Tesla’s Energy business is growing at a rapid rate, with the company deploying 1.04 GWh of energy storage over 2018. Production of Powerwall and Powerpack modules at Gigafactory 1 are also getting expedited thanks to a new manufacturing line from Tesla Grohmann. Tesla ultimately aims to more than double its energy storage deployments to over 2 GWh in 2019.

A Tesla Powerwall 2 owner is thanking his home battery system after it allowed him and his family to stay cool and comfortable despite a widespread blackout in the middle of a heat wave last week in Sydney, Australia.

After power was cut in his area, homeowner Carl Prins received a text message from his Tesla mobile app informing him that his Powerwall 2 battery was in backup mode. As the Sydney resident would later find out, around 45,000 properties in the city’s eastern suburbs were without power at the time, due to a widespread power outage resulting from overgrown weeds near an electrical substation.

Over the course of the roughly hour-long blackout, Prins kept cool using his home’s air conditioners. He also watched TV while taking care of his baby daughter. The homeowner noted in a statement to The Sydney Morning Herald that his system’s transition from grid power to battery power was so seamless, he did not even notice that there was a power outage.

“I didn’t initially realize the power had gone out, but then I got a text notification from the app to say that it was now in backup mode.” 

Last Thursday’s power outage hit Sydney at 11:26 a.m, right in the middle of a heatwave. The blackout disrupted council services and left medical facilities running on backup generators, while forcing some shops to close. Houses, even those fitted with rooftop solar panels but without the ability to store the energy, were forced to wait out the blackout. Power was restored to all affected areas by 12:37 p.m., just over an hour after the outage started.

The Sydney homeowner was unaffected by the power outage, as his house was fitted with both solar panels and a Tesla Powerwall 2 battery, which stores excess energy and performs load shifting to maximize energy cost savings. Without this system, Prins noted that he and his family would have had to travel to a shopping center or a library to keep cool.

“We would have had to get in the car and go to Westfield shopping center or the library to stay cool,” he said.  

The Tesla Powerwall 2 features a 13.5 kWh lithium-ion battery and retails for around AU$12,000 (around US$8,500) in Australia. Prins’ home battery system was installed last September after five months on a waiting list. The homeowner noted that his Powerwall has resulted in energy savings, with his power bills now around AU$600 (around US$420) per year compared to AU$4,000 (around US$2,800) per year before the battery’s installation.

The use of solar power for residential properties continues to get more prevalent in Australia, with an estimated 2,000,000 homes having rooftop solar systems. Around 20,000 of these homes are estimated to be equipped with battery storage solutions like the Tesla Powerwall 2. The Powerwall 2 battery is also a key component of Tesla’s planned 50,000-strong Virtual Power Plant for South Australia. 

Japanese battery maker Panasonic’s appears to be feeling the direct effects of its partnership with California-based electric car maker Tesla. Just recently, Panasonic opted to cut its profit outlook for 2019 over China’s slowing economy due to the trade war against the United States. Amidst these headwinds, Panasonic’s partnership with Tesla proved to be a silver lining for the Japanese company, pushing its battery business towards profitability — the first time in three quarters.

During a briefing about its adjusted forecasts, Panasonic Chief Financial Officer Hirokazu Umeda pointed out that there have been improvements with sales and profit on its battery business over the past months. Umeda notes that much of these improvements are due to its partnership with Tesla, especially considering the upgrades that Panasonic rolled out to its battery cell lines in Gigafactory 1. Overall, Tesla’s business gave Panasonic an operating profit of 16.5 billion yen (around $150M).

“Sales and profit at the Tesla business have improved,” Umeda said, later adding that additional lines at Gigafactory 1 would be installed by the end of March. The Panasonic CFO noted that with the upcoming improvements, Gigafactory 1’s total capacity could reach 35 GWh.

While its battery business appears to be thriving under its partnership with Tesla, Panasonic’s shares were walloped on Tuesday nonetheless. The Japanese firm’s 6.5% decline on Tuesday transpired amidst news that Tesla is acquiring ultracapacitor firm Maxwell Technologies in an all-stock deal valued at around $218 million. Considering that the opportunities presented by the Maxwell acquisition are related to Tesla’s battery technology, one could almost assume that Panasonic is practically losing its exclusivity as the electric car maker’s sole battery provider.

That said, industry analysts from Japan have noted that Panasonic’s recent decline in the market is primarily due to the company’s bleak quarterly earnings and annual profit estimate, which featured a 9% cut in its operating profit outlook and a decline of 19% for Q4 2018. This was a point highlighted by Masahiko Ishino, an analyst from the Tokai Tokyo Research Center, who noted in a statement to Reuters that Panasonic’s dive in the market was mostly due to the company’s outlook. 

“The latest earnings have revealed how tough the situation is for Panasonic,” he said.  

In a way, both Tesla and Panasonic appear to be branching out in their respective battery endeavors. Apart from acquiring Maxwell and its ultracapacitor tech, Tesla is also reportedly looking to partner with local battery suppliers in China for vehicles that will be produced at Gigafactory 3. On the other hand, Panasonic appears to be doing the same thing, recently teaming up with Toyota Motor Corp to collaborate in the development and production of rectangular-shaped prismatic batteries. Panasonic is also hoping to supply prismatic batteries to carmakers such as Honda, using the technology it would be developing with Toyota.

While these updates from Tesla and Panasonic might give the impression that the two companies are starting to diverge from each other, such an idea would be inaccurate. The batteries for Tesla’s electric cars and energy storage devices built in the US, after all, are still exclusively supplied by Panasonic. That means that the Japanese company would still be heavily invested in Tesla, as the electric car maker continues the Model 3 ramp and as it raises the production of its energy products like the Powerwall 2. Considering Tesla’s product roadmap, there is a very good chance that the electric car maker’s partnership with Panasonic would last for a long time to come. 

In a rather interesting turn of events, Volkswagen’s Electrify America has decided to purchase and install Tesla Powerpacks at over 100 of its charging stations. In an announcement on Monday, Electrify America stated that the Powerpacks would be installed to help during peak charging times. The battery storage units, which are expected to be installed this year, would have a capacity of 350 kWh and be compatible with 210 kW rapid charging.

The deployment of Tesla Powerpacks to the Electrify America network mirrors the concept utilized by Tesla in its Superchargers. That said, the deal between Tesla and Volkswagen could be seen as proof that even competitors in the electric car industry could work together for a common goal. In a statement to The Verge, for one, Electrify America CEO Giovanni Palazzo noted that Tesla’s industrial-grade batteries are a “natural fit” for his company’s charging stations, considering the Silicon Valley-based carmaker’s expertise on charging networks.

“With our chargers offering high power levels, it makes sense for us to use batteries at our most high demand stations for peak shaving to operate more efficiently. Tesla’s Powerpack system is a natural fit given their global expertise in both battery storage development and EV charging,” the CEO said.

The addition of Tesla Powerpacks to Electrify America is coming at the perfect time, considering that Volkswagen’s charging network is set to support a number of electric vehicles that are coming to the market in the near future. Later this year, for one, the Porsche Taycan is expected to start production, and as mentioned by the German carmaker in a recent press release, the premium electric sedan would be utilizing Electrify America as its partner for coast-to-coast travel in the United States.

Volkswagen has ambitious plans for Electrify America. The network plans to have 3,000 chargers online by the middle of 2019, though only 89 are operational for now. The charging network also fell prey to a shutdown last month when safety concerns emerged from the cables used in the system. If any, the addition of Tesla’s Powerpacks would likely allow Electrify America to deliver more consistent, dependable service to its users.

Ultimately, Electrify America’s recently announced Powerpack purchases show Tesla’s willingness to follow through with the words of CEO Elon Musk, who has continually been pushing for the adoption of electric vehicles to help attain a sustainable future. In a recent set of posts on Twitter alone, Musk expressed his excitement at seeing the entry of other premium electric vehicles to the market. In a later tweet, Musk also stated that Tesla’s true competition is not the “trickle” of rival EVs, but the “flood of gasoline cars pouring out of the world’s factories every day.”

Tesla’s battery storage business is set to see a notable rise this year. In the company’s Q4 2018 Update Letter, Tesla stated that it is ramping the production of its Powerpack and Powerwall modules at the Gigafactory. Elon Musk has also noted that Tesla would be ramping the production of its highly-anticipated Solar Roof tiles, which are being produced at the Gigafactory 2 in Buffalo, NY.

While Tesla’s Solar Roof tiles are already being installed on the homes of first customers in the United States, the shingles themselves are still in initial production. Unveiled back in October 2016, the Solar Roof tiles are expected hit larger production volumes this year. As the company heads into yet another ramp of a potentially disruptive product, though, Tesla appears to be working on some improvements on the tiles’ design as well.

As noted in a recently published patent application, Tesla is developing a system that would allow the company to improve the aesthetics of the solar shingles even further. In the patent application’s description, Tesla noted that integrated photovoltaic (BIPV) roofing systems such as the Solar Roof tiles are becoming more popular in the residential solar market, thanks to their benefits in both function and design. That said, while BIPV systems present an excellent solution for design-conscious customers, the system itself faces some challenges — the most notable of which is visual uniformity.

Tesla notes that in prior art BIPV roofing systems, the active solar portions of a roofing module end up being visibly different in appearance compared to inactive parts of the roof. The company notes that this contrast in appearance can get so pronounced that it becomes easy to spot which tiles are active and which are inactive from road level. Tesla notes that even in the design of the shingles themselves, it is quite easy to determine which parts of the tiles are active and which ones are not.

“This problem of visual mismatch, however, is not limited to BIPV versus non-BIPV sections of the roof. Even within a single roof tile and/or BIPV roofing module, the solar cells or active solar regions are clearly distinguishable from the other surrounding materials. This is due in part to edge setback constraints that impose a fixed, non-active edge border around active solar portions of solar roof tiles or BIPV roofing modules. Therefore, there exists a need for a solar roof tile or BIPV roofing module that ameliorates deficiencies of prior art BIPV roofing systems,” Tesla wrote.

Tesla’s solar shingle design outlined in its recent patent application. (Photo: US Patent Office)

Tesla’s solar shingle design outlined in its recent patent application. (Photo: US Patent Office)

The design of Tesla’s solar shingles outlined in its recent patent application. (Photo: US Patent Office)

Tesla explains this design issue for BIPV roofing systems more extensively in the section below.

“In either tile 105 of FIG. 2 or tile 106 of FIG. 3, the lack of active thin-film material within the edge setback results in a relatively large, e.g. ˜16 mm, visible border around the outside of active area 112 that is noticeable not only when viewed up close, but even at street level distances from a roof surface. This result can be seen in the extended partial array 100 of FIG. 4. The relatively large percentage of tile surface area of the edge setback that is devoid of thin-film material creates a sharply contrasting two-color/two-tone pattern between the area surrounding the active area of thin-film photovoltaic material and the active area of thin-film photovoltaic material. In embodiments, techniques are used to provide aesthetic uniformity such as depositing colored material on the underside of top glass 110 prior to lamination to conceal active area 112 beneath. This approach, however, may result in a reduction in energy collection because these extra materials may block photons from reaching active area 112.”

Tesla’s solution for this aesthetic challenge — which uses an inactive area of thin-film photovoltaic material that surrounds a solar shingles’ active area — is simple and clever. Tesla describes its design in the section below.

“As shown, the tiles 205 include a substantially rectangular active 212 surrounded by a substantially rectangular board of an inactive area 225. In embodiments, the inactive area may completely surround the active area or may only be present on one, two or three sides of the active area. As shown in FIG. 5, the tiles 205 create a more uniform look and, when viewed at distances, such as in shown in FIG. 8, adhesion area 215 blends into the natural seams between adjacent tiles or between active areas 212 of adjacent tile sections. The visible material difference has been attenuated by the use of non-active thin-film material within a portion of the setback region allowing for a smaller adhesion zone.”

Tesla’s recent patent application would be particularly useful for the other Solar Roof variants planned by the company. So far, social media posts from Solar Roof owners show homes fitted with the company’s Textured tiles, whose design inherently bypasses the uniformity issues described in the patent application. As for other Solar Roof variants like Smooth and Tuscan, though, the recent application’s innovations would certainly be beneficial.

Tesla’s Solar Roof tiles are being produced at Gigafactory 2 in Buffalo, NY. Over the years, the facility has largely evaded attention, particularly as Tesla’s energy business was mostly overshadowed by the company’s ramp for the Model 3. Last year, though, Tesla opened the doors of Gigafactory 2 to the media, providing a glimpse of what is in store for the company’s residential solar business. While Tesla did not provide specifics on the facility’s current output, the electric car and energy company did state that Gigafactory 2 is operating 24/7, and that the long waiting list for the Solar Roof tiles would likely keep the entire facility busy for years.