Tesla, once a top contender in the residential solar installation field, is experiencing a decline in its solar business. In the third quarter of this year, the company’s solar deployments dropped by 48% compared to the same period last year. Sequentially, from Q1 to Q3, solar deployments have decreased from 67 MW to 66 MW, and further down to 49 MW.
Key Takeaway
Tesla’s solar business may be declining, but the company’s energy storage sector is flourishing. The increase in energy storage deployments highlights the growing demand for sustainable and reliable energy storage solutions. While Tesla faces challenges in certain areas, the success of its energy storage business showcases the importance of such technologies in the renewable energy transition.
However, despite the decline in solar installations, Tesla’s “Energy generation and storage” arm reported a 40% increase in revenue during Q3. The reason? The company’s energy storage business is booming.
Energy Storage Deployments Soar
Tesla’s energy storage deployments experienced a remarkable 90% increase in Q3, reaching nearly 4 GWh, up from 2.1 GWh in Q3 2023. This surge was the highest quarterly deployment ever recorded by Tesla. The company attributes this success to the continuous expansion of its Megafactory in Lathrop, CA.
The popularity of Tesla’s Powerwall home batteries and utility-scale Megapacks has contributed to their thriving energy storage business. These products play a significant role in the transition to renewables, as they enable the storage of clean energy for later use, reducing reliance on fossil fuels.
Profits Decline Despite Energy Storage Success
Despite the success in the energy storage sector, Tesla reported a significant decline in profits during Q3. This decline can be attributed to various factors, including price cuts on electric vehicles.
