News: Energy

Tesla Energy is poised to participate in California’s initiative to build one of the world’s largest battery systems. After a historic 4-1 vote, California utility regulators approved a proposal put forward by Pacific Gas & Electric, which aimed to replace three natural gas-fired power plants in the state with utility-grade lithium-ion batteries.

When completed, the projects approved by the California Public Utilities Commission (CPUC) would be among the largest battery installations in the United States. Among these is a 300 MW lithium-ion battery from Dynegy, as well as a 182.5 MW Tesla battery system. Installations from Hummingbird Energy Storage (75 MW) and mNOC (10MW) allow the entire clean energy initiative to reach a total of 567 MW. Considering that all the battery systems have four-hour ratings, the total energy rating of the entire project is an impressive 2.27 GWh.

Among the most notable gas-powered plants that would be replaced by the battery installations is a facility in Moss Landing, CA, located around 15 miles north of Monterey. All the battery systems, particularly Tesla’s 182.5 MW installation and Dynegy’s 300 MW battery, will be located on the site of the outgoing gas-powered plant.

Apart from being impressive in its size, the recently approved battery projects will not only connect to the area’s substation and transmission infrastructure built for the Moss Landing Power Plant; the lithium-ion batteries will replace the entire range of services provided by the plant itself as well. Dynegy, who owns the gas-powered plant, noted back in February that it would likely retire the facility. The CPUC has stated that another plant in Gilroy would probably go offline in the near future as well.

While the benefits of industry-grade batteries are notable, PG&E’s proposal met a notable amount of opposition nonetheless, particularly from gas generator Calpine, the California Direct Access Customer Coalition, and the California Community Choice Association. According to the project’s skeptics, the investment in the lithium-ion battery systems would not be a good use of taxpayer funds. Despite the opposition, though, the large-scale energy storage project was approved nonetheless.

With the project’s approval from the CPUC, California has managed to take a step forward in its efforts to decarbonize its electric system by shifting from natural gas to greener solutions. In a statement to GreenTechMedia, Matt Vespa, staff attorney at Earthjustice, stated that the upcoming battery installations would give several benefits to the state’s residents.

“Not only will this help California integrate solar and reduce the need to ramp up polluting gas plants in the late afternoon, but it will also provide local reliability needs in an area that is currently highly reliant on gas-fired generation. We are getting multiple benefits, pushing gas off the system, and moving a step closer to a decarbonized grid,” he said.

While Tesla’s Energy business usually takes a back seat to its electric car business, the company’s battery storage division continues to grow rapidly. Billionaire investor Ron Baron, for one, stated that he believes Tesla’s energy business could be worth $500 billion on its own by 2030. In a way, part of this projected growth is attributed to the declining price of batteries and the performance of projects such as the South Australia Powerpack farm, which has all but triggered a clean energy movement in the region. In a statement earlier this year, Tesla CTO JB Straubel remarked that battery technology has progressed to a point where it now has the potential to replace inefficient and dirty power plants.

“I think what we’ll see is we won’t build many new peaker plants, if any. Already what we’re seeing happening is the number of new ones being commissioned is drastically lower, and batteries are already outcompeting natural gas peaker plants,” Straubel said.

The emergence of Tesla Energy at this point in time could bode well for the company, particularly since battery storage is expected to grow in the future. A study from GTM Research, for one, estimates that sales of energy storage for both residential and utility markets in America would probably hit $541 million this year, before passing $1 billion in 2019, and eventually reaching $4.6 billion in 2023. If Tesla Energy can ramp its operations in time, and if its batteries prove themselves in the field, the electric car maker could very well position itself strategically in what could, in more ways than one, be a clean energy gold rush.

Since going online last year, Tesla’s Powerpack farm in South Australia has established a reputation for being a quick, clean, and efficient backup to the region’s beleaguered energy grid. As the big battery continues to prove its critics wrong, the Australian Energy Market Operator (AEMO) has announced that it would no longer be needing the services of several fossil fuel-powered plants, which supported the grid prior to the arrival of the Tesla Powerpack Farm. 

AEMO’s recent initiative closes the page on a three-year-old requirement for 35 MW of Frequency Control Ancillary Services (FCAS) to be provided in South Australia during instances when the state’s grid is at risk of separating from the national grid, ensuring that the state’s grid could operate safely and securely by itself. In an announcement on Thursday, the AEMO acknowledged that the energy landscape in the region has changed during the past year. 

“The operation of SA has changed significantly over the past 12 months. Synchronous unit requirements (for SA system strength) and the installation of the Hornsdale battery have ensured regulation FCAS is more readily available post-islanding of SA. Hence this requirement is no longer considered necessary,” AEMO noted.

Prior to the installation of the Tesla Powerpack farm, the local providers of FCAS turned the South Australian energy grid into a booming business. The providers, which utilize fossil fuel-powered plants, kept the price of FCAS in the state extremely high, rising nearly 100-fold to the market cap of $14,000/MWh. At one point, the cost of South Australia’s FCAS rose to around $6 million a day, and considering the strain on the region’s energy grid; the state ended up paying more than $100 million in 2016 and 2017.

The Tesla big battery, officially named as the Hornsdale Power Reserve, disrupted the market when it went online. With the Powerpack farm present, gas generators were unable to dictate the price of backup energy services. The battery farm also proved that it was quicker, more flexible, more accurate, and even more cost-effective than fossil fuel-powered plants.

The Powerpack farm’s capabilities were put to the test in late August, after twin lightning strikes resulted in the failure of two major transmission lines linking Queensland and New South Wales. The results of the lightning strikes were notable — the South Australia and Queensland grids were separated and there were widespread power losses in NSW, Tasmania, and Victoria. In South Australia, there was no loss of power, and no failure of generators due to the fast response of the Tesla Powerpack farm.

The feats of the Horsndale Power Reserve has triggered an energy movement in Australia, becoming the frontliner in AEMO’s contingencies against major faults and disturbances to the grid. New battery-based projects are currently underway in several other areas, such as Dalrymple North in South Australia, at the Ganawarra solar farm, and a Ballarat network junction in Victoria. In a statement to Renew Economy, Christian Schaefer, AEMO’s head of system capability, noted that the region’s move away from fossil fuel-powered backup plants is a step in the right direction.

“This is a good news story. The work that our engineers in the AEMO team have done shows that we can continue to operate South Australia in a stable and secure manner. Hornsdale has had a significant impact on the South Australia system, and we have got new batteries coming online with Victoria and South Australia. That is really positive. It shows that all parts of the industry  — networks, generators, the renewable sector, battery providers and regulators — are getting behind this and showing an interest in what has been done,” he said.

Tesla Energy does not make as many headlines as the company’s electric car business, but the business is in a constant process of growth. In a recent statement, billionaire investor Ron Baron noted that he expects Tesla’s electric car and energy business to be equally worth $500 billion each by 2030. Tesla CTO JB Straubel, for his part, has previously teased that Tesla Energy is indeed going after backup peaker plants.

“I think what we’ll see is we won’t build many new peaker plants, if any. Already what we’re seeing happening is the number of new ones being commissioned is drastically lower, and batteries are already outcompeting natural gas peaker plants,” Straubel said.

Tesla’s big battery in South Australia, officially known as the Hornsdale Power Reserve, has been supporting the region’s beleaguered energy grid since it went online last year. Over the past months, the Powerpack installation has been proving that large-scale battery storage solutions could be preferable alternatives to fossil fuel-powered backup plants.

Almost two years ago, SA experienced a state-wide blackout that highlighted the region’s need for a facility that can provide backup to the grid. A Twitter conversation between two billionaires, Australian software pioneer Michael Cannon-Brookes and Tesla founder Elon Musk, ultimately started the initiative that would eventually become the massive Powerpack farm. Musk even wagered that Tesla could complete the 100MW/129MWh facility in 100 days or it would be free.

The timeline was ambitious, and unsurprisingly, it attracted a slew of critics, some of whom claimed that batteries could not be built that big or that quick. In the same month as Elon Musk and Michael Cannon-Brookes’ conversation on Twitter, for example, the Australian Energy Market Operator (AEMO) issued a report suggesting that the maximum size of a utility-scale lithium-ion battery would be 1MW. The report was published not long after then-AEMO chairman Tony Marxsen stated that utility-scale batteries were about 10 to 20 years away from providing meaningful contributions to the grid. The Minerals Council of Australia, the country’s primary coal lobby, also suggested that a large-scale battery installation would take at least one year to design and two years to build.

Tesla completed the 100MW/129MWh Powerpack farm within Elon Musk’s ambitious timeline, six months after the “billionaire tweets” and just 62 days after Telsa signed the connection agreement with the market operator and network owner. Even as the battery started its operations, though, the facility still attracted a notable number of critics. Prime minister Scott Morrison ridiculed the Hornsdale Power Reserve, comparing it to tourist attractions such as the Big Banana in New South Wales. Resources Minister Matt Canavan also dubbed the big battery as the “Kim Kardashian” of the energy market.

Amidst the skepticism, the SA big battery has proven its worth many times over. Even before its official launch, the Powerpack farm was called into action, injecting 70MW of stored wind energy into the market. Two weeks after it was officially opened, it stepped in when a unit at Loy Yang coal generator in Victoria tripped. Just last month, twin lightning strikes caused widespread outages in three states, and the Queensland and South Australia grids had to be islanded. Queensland’s backup hydro plants and coal generators struggled to respond to the unexpected event, while South Australia, supported by the Tesla Powerpack farm, emerged from the incident unscathed.

The Hornsdale Power Reserve and its success so far has encouraged a series of similar battery storage projects in Australia. The Ganawarra battery, a Tesla installation paired directly with a massive solar farm, is set to start operations soon. Next to the Wattle Point wind farm, the Dalrymple North battery is expected to go online soon as well. Other battery storage installations are also set to be launched in Ballarat, Whyalla, and in Queensland. And these are just large-scale battery solutions. Initiatives such as the South Australia Virtual Power Plant, which would dwarf than the Hornsdale Power Reserve when completed, have also been given the green light.

It won’t be an overstatement to say that the Tesla big battery has become a project, possibly even the project, which ultimately proved that battery storage is an ideal alternative for fossil fuel-powered backup plants. This was emphasized earlier this month by Tesla CTO JB Straubel, who noted that the improvements in battery storage are starting to affect the market for traditional fossil fuel-powered peaker plants. In an interview with the San Francisco Chronicle, Straubel stated that even at this point, large battery installations are “already outcompeting natural gas peaker plants.”

Tesla Energy usually takes a backseat compared to the company’s electric car business in terms of news coverage, but its progress in battery storage has been notable. In the first six months of 2018 alone, Tesla’s deployment of stationary batteries, which are designed to supply power to residential homes, businesses, and power grids, surged 450%. During the 2018 Annual Shareholder Meeting, Elon Musk also announced that it is aiming to hit a cost of $100 per kWh at the pack level. Considering its recent growth and the success of high-profile projects like the Hornsdale Power Reserve, it won’t be surprising if Tesla Energy eventually catches up and surpasses Tesla’s electric car business in size.

Despite admitting that he thinks moats are lame in Tesla’s Q1 2018 earnings call, Elon Musk cannot deny that the Supercharger network provides a competitive advantage against upcoming rivals like the Porsche Taycan or the Jaguar I-PACE. There are 10,901 Superchargers as of writing, and Tesla is steadily adding more. The company even noted in a recent update that 99% of the United States’ population now lives within 150 miles of a Supercharger station.

The Supercharger network is so far only compatible with Tesla’s vehicles. While addressing this point during the Q1 earnings call, Elon Musk asserted that the Superchargers are not a “walled garden” that is designed only for Tesla’s electric cars. Musk even added that Tesla has been open to sharing the charging network with competitors, provided that they use an adapter and pay a fee. The CEO noted that so far, no other EV maker has expressed interest in getting access to the company’s Superchargers.

“We’ve always said that this is not intended to be a walled garden, and we’re happy to support other automakers and let them use our Supercharger stations. They would just need to pay, you know, share the costs proportionate to their vehicle usage, and they would need to be able to accept our charge rate or at least our connector, at least have an adapter to our connector. This is something that we are very open to, but so far, none of the other car makers have wanted to do this. It’s not because of opposition from us. This is not a walled garden,” Musk said.

This was not the case today. Bollinger Motors, an electric vehicle startup, recently posted a tweet directly asking Elon Musk if its upcoming EV, the B1 all-electric sport utility truck, could use Tesla’s Supercharger network. Neither Tesla nor Elon Musk has posted a response to the company’s proposal in the social media platform yet.

@elonmusk Can we use your charging stations?

— Bollinger Motors (@bollingermotors) August 16, 2018

Bollinger Motors might be relatively new to the electric vehicle industry, but its first offering has been garnering a strong, positive response from the EV community. The company only has one vehicle, called the B1, but the truck has won praise from both EV and truck enthusiasts due to its rugged, aggressive and utility-focused design. With boxy panels, the B1 is not that aerodynamic, but its design and features invoke an image of a vehicle that is as tough as it looks.

The B1 is fitted with two electric motors that make 360 horsepower and 472 lb-ft Torque. A 125 kWh battery pack is also expected to give the truck an estimated 200 miles of range per charge. That said, what really sets the Bollinger B1 apart is its utility features. The truck has a 2-speed, high/low gearbox, which could help the vehicle traverse through steep terrain. The B1 also sits high on its massive off-road wheels, thanks to its adjustable suspension that can provide a ground clearance of 10-20 inches. The B1 can also serve as a portable power supply for tools.  

Bollinger has not announced the price of the upcoming vehicle yet, though the company has stated that it has listed around 10,000 reservations to date. Bollinger expects to finalize the B1’s design this year, with initial production estimated to begin sometime in 2019.  

Tesla Energy might not be attracting as much news as the company’s electric car business, but it has achieved some milestones of its own over the past few years. As of June 2018, Tesla had deployed a total of 1 GWh of energy storage worldwide, and during the company’s Q2 earnings call, Elon Musk and CTO JB Straubel reaffirmed Tesla’s commitment to growing its energy business over the coming years. Staubel even remarked that it might only be a matter of time before Tesla Energy overtakes the company’s electric car business in size.

Tesla’s batteries, such as the Powerpacks deployed on the Hornsdale Power Reserve in South Australia, are proving themselves as viable alternatives to fossil fuel-powered plants, and this is partly due to the fact that the energy industry hasn’t really evolved much over the past few decades. Tesla CTO JB Straubel highlighted this point in a recent segment with The Verge.

“You know, the electric grid hasn’t changed that much from 100-some years ago when Tesla and Edison were actually inventing it. Most people don’t realize, but it’s instantaneously matched — every time you turn on a light switch in your house, instantaneously, a power plant, somewhere, connected to that same grid, has to ramp up a little more power output to make the light operate,” Straubel said.

Most of the power used by cities today rely on large gas or coal-powered plants. In the United States, around 60% of power comes from fossil fuels, while ~20% comes from nuclear power stations. These large, baseload gas plants are consistent, but they are not very flexible. For example, when demand for power is too low, these plants lose money. When the demand gets too high, these facilities usually have to rely on faster, smaller plants called Peaker Plants to support the grid. Unfortunately, Peaker Plants are also traditionally dirtier than baseload gas plants. Straubel noted that this system causes the grid to get “dinged” on both sides.

“You get dinged when you don’t have enough load, and then when you have too much, you also get dinged inefficiently,” Straubel said.  

It’s still going to take some time before clean energy solutions become capable of adequately supporting the power grid on their own. Renewable energy such as solar and wind, after all, are very promising, but they are not very consistent. Solar power can get compromised on a cloudy day, and wind power can be compromised when there is no wind. This is where battery storage comes in. Paired with renewable solutions, batteries such as Tesla’s industry-grade Powerpacks are able to store gathered energy and feed it to the grid when needed. Grid-scale chemical batteries only comprise a small part of the renewable energy market for now, but the use of batteries has been growing over the years. This, according to the Tesla CTO, would have been inconceivable ten years ago.

“That was kind of unheard of ten years ago. If you told someone that hey, a lithium-ion battery could do that sort of duty, storing solar energy every single day for ten years, they wouldn’t have believed it. I think the biggest thing is scalability. Batteries have this beautiful ability to vary economically, scale from gigawatt-hour-sized systems all the way down to 10 kilowatt-hours in your house,” Straubel said.

True to Tesla’s statement during its Q2 2018 earnings call, the list of the company’s energy projects continue to get longer. Just recently, Infigen Energy, an operator of renewable energy generation solutions in Australia, ordered a 25 MW/52 MWh energy storage system from Tesla. The batteries would be deployed at the 278.5MW Lake Bonney Wind Farm in South Australia and connected to the grid via the Mayurra substation. In a statement to Renew Economy, Australian Renewable Energy Agency (ARENA) chief Ivor Frischknecht expressed his optimism about the energy storage project.

“It is clear that grid-scale batteries have an important role in stabilizing the grid. The co-location of a battery with a wind farm provides an opportunity for Infigen to pursue regulatory changes that could improve revenue outcomes for grid-scale batteries, helping to become more competitive,” he said.

During Tesla’s 2018 Annual Shareholder Meeting, Tesla CEO Elon Musk mentioned that the company is getting closer to a battery breakthrough, with the company on pace to hit a battery cell cost of $100 per kWh by the end of 2018 depending on the stability of current commodity prices. Tesla also announced that production of residential energy products such as the Powerwall 2 and the Solar Roof tiles are set to see an increase within the next few quarters.

Tesla’s Gigafactory 2 in Buffalo, NY was dubbed fully complete by state and company officials this past April, starting a countdown clock for Tesla to provide 1,460 jobs to Buffalo, NY within the next two years. Failure to do so could result in fines of up to $41.2 million for every year that it does not meet this employment goal.

When Tesla received support from the state worth $750 million to build and equip the solar factory, the company committed to providing 5,000 jobs to the state of New York within the next ten years. These job-creation targets have evolved over the years, particularly when SolarCity was acquired by Tesla. The state of New York’s original agreement with SolarCity required the company to provide 1,460 jobs at the solar factory and another 1,440 jobs at suppliers and service providers in the Buffalo region. This gave SolarCity a target of providing 2,900 jobs for local workers.

Once Tesla took over, the requirement to bring in 1,440 suppliers was waived by the state. The revised agreement with New York included requirements for Tesla to create 1,460 jobs in Buffalo within two years after the factory is complete, including 500 manufacturing jobs at Gigafactory 2. In a statement to The Buffalo News, Tesla officials stated that the company had already surpassed the first employment target — one that required Tesla to create 500 jobs by April 2019. By meeting this target, Tesla is now tasked to more than double the number of jobs it created so far, in order to meet the state’s April 2020 deadline.

Tesla’s Gigafactory 2 might seem almost dormant amidst the company’s push to ramp the production of the Model 3, but the electric car and energy company maintains that it intends to produce its solar products at a larger scale in the Buffalo facility within the coming quarters. Before its Q2 2018 earnings call, CTO JB Straubel stated that Tesla is “aggressively ramping” the production of its residential solar products, which are manufactured at the New York factory. Straubel also stated that production of the Solar Roofs are expected to accelerate in 2019, as residential installations of the shingles are rolled out to reservation holders.

The Tesla executive reiterated this statement in the company’s second-quarter earnings call, stating that while the company’s electric car business is bigger today, the growth of Tesla Energy is faster. Elon Musk even noted that Tesla Energy would likely catch up to the electric car business’ size in the future.

“Yeah, if you extrapolate energy growth rate, well, obviously, if you extrapolate anything when that triples for a year pretty soon becomes the size of the universe, but long-term we would expect the energy business to catch up to the auto business in size,” Musk said.

Tesla’s Gigafactory 2 in Buffalo, NY is tasked with the production of the company’s Solar Roof tiles, which, together with the Powerwall 2 home battery, are part of the company’s initiative to help customers achieve “sustainable energy independence.” At full capacity, Tesla’s Gigafactory 2 is expected to manufacture 1 GW worth of solar products every year. In classic Elon Musk fashion, the CEO gave a more optimistic forecast for the facility back in 2016, stating that he estimates the factory to be capable of producing as much as 10 GW worth of solar products annually.

Inspectors at the California Highway Patrol commercial truck inspection station were in for a treat Friday afternoon on August 10 when a spotless Tesla Semi truck pulling a trailer full of cargo made its way through the Donner Pass Inspection Center that’s located off of Interstate 80.

Roughly 50 miles south of Tesla’s Gigafactory, where the all-electric big rig was likely coming from, CHP authorities stopped Tesla’s all-electric truck for an impromptu inspection as part of its authority under the CA vehicle code to stop and inspect trucks where signs are posted.

Images of the Tesla Semi at the Northern California weigh station and inspection center were shared with a relative excitement by CHP – Donner Pass on social media. “The future has arrived…….The new Tesla truck tractor was inspected today at the facility,” noted the Commercial Vehicle Enforcement Facility on its Facebook page.

Though under California law the CHP had the authority to stop Tesla’s Semi for a routine inspection, one could presume that officials were more keen on getting a better up-close-and-personal view of the rare semi truck than anything. “Very easy to inspect and very clean,” noted the CHP – Donner Pass representative. Adding, “We like it. Very clean” when asked by a Facebook user on how they felt about the quad-electric motor long-range hauler.

No violations were found during the inspection and the vehicle was cleared to go.

Photo credit: CHP – Donner Pass via Facebook

The Tesla Semi has continued to build in popularity among businesses looking to reduce their carbon emissions footprint while also cutting transportation and logistics costs. Some of the world’s most notable companies such as PepsiCo, FedEx, and UPS in the United States and Bee’ah from the United Arab Emirates, have publicly announced the upcoming addition of Tesla’s semi truck to its transportation fleet, although that would appear to be a small fraction of the total number of orders being placed for the all-electric truck. In the company’s Q1 2018 earnings call, Tesla CEO Elon Musk and CTO JB Straubel noted that there are roughly 2,000 reservations for the electric long-hauler.

Related:

• Tesla Semi to boast nearly 600-mile battery range, says Elon Musk
• Tesla Semi makes an appearance at historic LA service center
• Tesla Semi cabin’s Model 3-inspired elements showcased in new video

Tesla CEO Elon Musk is set to take the stage on Wednesday afternoon at 2:30 pm PDT (5:30 pm EDT) to talk about the company’s Q2 financial results. Following a relatively positive quarter, based on after-hours stock activity, with the Silicon Valley-based electric car maker and energy company posting record revenues and wider adjusted losses, investors will attempt to glean insight on company progress toward profitability and Model 3 ramp.

RECAP: Tesla (TSLA) posts Q2 2018 financial results: $4B revenue, profitability in focus 

Stay with us as we bring you live coverage from today’s Tesla Q2 2018 earnings call.

Tesla Q2 Earnings – Curated tweets by clprenz

One of Tesla’s first residential Solar Roof customers has provided more details about his recently-installed solar and battery system. In a follow-up interview with E for Electric‘s Alex Guberman, Tri Huynh, the owner of the Solar Roof-equipped home, discussed the costs associated with the installation, how much power his solar shingles gather on average, the system’s maintenance, and savings that he has seen so far.

Huynh noted that the entire Solar Roof installation for his 1,000-square-foot roof totaled $100,000, which included the cost of all the tiles and three Powerwall 2 home batteries. The Solar Roof owner added that Tesla’s shingles became a reasonable investment for him since he was in the market for a new roof anyway, and his home is in Northern CA, where sunshine is abundant. Huynh was given a quote of $50,000 for the complete replacement of his roof alone. The Solar Roof owner stated that when he priced out a new roof and traditional solar panels, it came to around $70,000 without any batteries.

Tesla finished the installation of the Solar Roof system earlier this year, but Huynh was only able to connect it to the grid after three months due to backlogs with his area’s utility company. The system has only been powered on for half a billing cycle, and according to the Solar Roof owner, his estimated electric bill so far is around $90 from its usual $350 monthly rate. Huynh noted that the system charges two electric cars — a Chevy Bolt EV and a Tesla Model 3 — as well as air conditioning, and a dryer.

A Tesla Solar Roof installation. [Credit: E for Electric/YouTube]

A Tesla Solar Roof installation. [Credit: E for Electric/YouTube]

A Tesla Solar Roof installation. [Credit: E for Electric/YouTube]

A Tesla Solar Roof installation. [Credit: E for Electric/YouTube]

Tesla’s Solar Roof and Powerwall 2 batteries installed on Tri Huynh’s Northern CA home. [Credit: E for Electric/YouTube]

Power produced by the Solar Roof tiles has been quite substantial, with the system producing up to 10 kW of power, which is enough to fully charge his Powerwall 2 batteries in several hours. Huynh noted that on an average CA day, his Solar Roof tiles produce around 7-8 kW. The lowest his system has produced to date was 3 kW, which happened during an overcast day. Overall, Huynh stated that with the system running, the Solar Roof tiles are enough to keep his home’s lights on 80% of the time without relying on the grid.

The Solar Roof tiles are practically maintenance-free. Huynh stated that when he signed the contract for the solar system, Tesla provided him with performance measurements that the Solar Roof tiles should display. Tesla monitors the roof’s performance and degradation over time, and in the event that the system falls below its listed performance measurement, Tesla would come to the site to fix and optimize the solar shingles at no additional cost.

Overall, Huynh noted that he is fully satisfied with his Solar Roof purchase.

“I’m amazed at how much power the sun generates. It’s amazing. I feel like every house should have solar. I know it’s expensive, but I think we should all work towards that,” he said.

Earlier this month, CTO JB Straubel stated that Tesla is “aggressively ramping” its efforts to address the demand for the company’s residential battery and solar products. Straubel further noted that Tesla is expecting to pick up production of the Powerwall 2 home battery later this year. Production of the Solar Roof tiles is expected to accelerate in 2019. With these initiatives, the Tesla CTO expects to see reduced wait times for the company’s residential products.

When Tesla CEO Elon Musk unveiled the Solar Roof tiles, he noted that the shingles could turn out to be a “Keeping up with the Joneses” situation. The shingles, which are specifically designed to mimic the appearance of regular roof tiles, are expected to further the company’s mission of accelerating the market towards sustainable solutions.

“You want to call your neighbors over and say, ‘Check out the sweet roof.’ It’s like, not a phrase that you hear often, but that’s the key to it. People really care about their homes; they love their homes, and they want them to be better,” Musk said.

Watch E for Electric‘s follow-up interview with the Solar Roof customer in the video below.