SolarCity Corp (SCTY) Chooses Tesla Energy Battery for Solar Storage
SolarCity Corp (NASDAQ:SCTY) has chosen Tesla Energy to supply the batteries for its solar array and energy storage system. It will be a first-of-its-kind system that will be built for Kaua’I Island Utility Cooperative (KIUC).
SolarCity’s largest shareholder is Elon Musk, the CEO of Tesla Motors Inc (NASDAQ:TSLA). So it may have been a logical choice for the solar energy firm to purchase batteries by the electric car maker. The order will see Tesla help provide 13 megawatts of electric storage for an array of solar panels for KIUC that will be built on the Hawaiian island of Kauai.
According to a news release, the storage system will be established on 50 acres of land owned by Grove Farm Company, which is near KIUC’s Kapaii power station.
The purpose of the solar energy system is to provide KIUC with dispatchable electricity in the evening and when the sun goes down. KIUC signed a 20-year deal with SolarCity to buy the energy created by solar at a price of 14.5 cents per kilowatt hours.
This will help KIUC reduce the amount of imported fossil fuel it uses as well as cut down on greenhouse gases.
The next step is to have the Hawaii Public Utilities Commission (HPUC) approve the deal. The deal has already been given the go ahead from the state and counties. With the project now having Tesla in the mix it may help the project go through faster.
Bloomberg News notes that Musk revealed a number of batteries to store electricity for residences, businesses and utilities last year. The batteries, which Musk said would “fundamentally change the way the world uses energy,” would help homeowners and businesses store power and rely less on the electric grid.
Although this is big news for all parties involved, analysts are focusing on how Musk’s two firms are helping one another get more business in their markets. Remember, Tesla has gone beyond the electric car and into batteries.
Musk’s Billion-Dollar Losses in SolarCity, Tesla
It’s been a tough 2016 for Musk. The innovative CEO has lost $3.3 billion, including $705 million in SolarCity shares in just one day.
Year-to-date, SolarCity stock has lost 64 percent of its value, while Tesla has fallen 35 percent.