Monday, 12 September 2016

Solar City Keys On Battery Storage

Elon Musk’s plan for Tesla Motors Inc. to acquire SolarCity Corp. hinges on a symbiosis that doesn’t exist. At least not yet.


The key to the proposed $2.86 billion takeover is combining Tesla’s electric cars and wall-mounted battery units with SolarCity’s rooftop panels, letting homeowners store solar power to use at night. Here’s the catch: Creating this end-to-end energy company would negate the main financial incentive for rooftop panels.

Utilities let consumers sell power into the grid at rates generous enough to cover most or all of their utility bills. That benefit, known as net metering, loses its value when electricity is instead squirreled away in a Tesla battery. Musk has said the combination will make economic sense within five years.

“The value proposition for solar plus storage is at odds with net metering,’’ said Ravi Manghani, director of energy storage at GTM Research.

Tesla announced the friendly offer to acquire SolarCity June 21, and the solar company’s board is considering the deal. The two companies are closely linked, and Musk is their top shareholder, holding more than 20 percent of the shares in both. He’s planning to disclose the “Top Secret Tesla Masterplan Part 2,” possibly this week, according to a July 10 Tweet.

This article comes from http://www.storagebattery-factory.com/news/Solar-City-Keys-On-Battery-Sto.html.

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