Tesla CEO Elon Musk announced in 2015 that the electric vehicle company would enter the energy business. Now it’s starting to take off. In its fourth quarter 2020 earnings call, the company said its battery deployments were up 83% in 2020, particularly thanks to the popularity of the Megapack, which stores power for utilities.
Renewable energies like solar and wind need battery storage for when the wind is not blowing and the sun is not shining. As nations around the world set targets for the transition to renewables, the demand for these large-scale storage systems is on the rise. Grid-scale battery storage is expected to become a $ 15 billion market by 2027, according to Grand View Research.
CNBC visited PG & E’s Tesla Megapack site in Moss Landing, California, and found out why energy storage systems like Tesla’s could be everywhere in a renewable energy future. Watch the video to get an inside look at Tesla’s energy business.