Tesla – Mad Science At Its Best

Elon Musk has made headlines over the last few years with high-end, electric Tesla (TSLA) car models. The Roadster and S models come fully equipped with touch-screen center console panels, luxury interiors, and sports performance and acceleration. Stock prices have seen spikes and drops in recent years, but they have remained generally high as the company has built out a network of charging stations and begun constructing its own $5 billion battery factory. The factory will not only produce lithium ion batteries for use in Tesla’s current and future models of cars, but also large capacity batteries for home power use.

The cost of independence

The batteries would ideally store energy harvested from solar or wind power generators for use throughout the day and night. For many, the first question concerning the battery is its price tag. The Tesla Powerwall batteries are being developed in two models: a 7 kWh for $3000 and a 10 kWh for $3500. With electrical utilities costing anywhere between $74 and $200 per month depending on the region, investing in a Powerwall unit could take anywhere between 1.5 and 4 years for a single family household to pay off. That’s without investing in solar or wind generator units. Interested consumers can already find formulas to help them determine if their house or business is a good candidate for a Powerwall unit.

The main downside to the product is actually the homework. The Powerwall is still veiled in secrecy in certain respects, but it would be wise for Tesla’s engineers to come up with simple rubrics to help consumers see the big picture. When it comes to selling self-reliance or renewable energy usage, the everyday consumer should be handed a concise spreadsheet or table to quickly calculate savings and estimate pay-off timelines. If that point is not glossed over, consumers in regions rich in sunlight or wind streams will have solved the greatest problem plaguing alternative energy sources: consistency.

The sun is an ideal source of power regions such as the US Southwest – until the sun goes down. The same holds true for a farmer in Kansas with his own windmill chugging away until the wind dies down for a few hours. Unless you have a constantly flowing stream with a dedicated, tiny hydroelectric dam on your property, renewable energy has historically been a risky, inconsistent investment. With high capacity batteries storing excess flows of energy throughout the day, Powerwall batteries could start making solar panels seem like a good idea even in regions with average amounts of sunshine.

Shifting gears

By concentrating on battery manufacturing and sales, Tesla has shifted away from being a car manufacturer. Elon Musk has estimated that 160 million Powerwall units could mimic the output of the entire US power grid. Such large-scale statements forecast an attitude of large-scale battery sales.

Not just for homeowners

Despite some green energy fans and off-grid proponents claiming that Musk is taking down power companies, they may become some of his customers, as the Powerwall isn’t the only unit being designed in Tesla labs. Tesla’s industrial Powerpack model promises to be quite disruptive by dropping costs for energy consumers. Here’s how it works. Utility companies can buy power on off hours when it is cheap and in lower demand. Battery incorporation for utility companies would reduce the need for additional power plants while also preventing blackouts and brownouts. Finally, by selling off the cheaply purchased, stored power during peak hours, utility providers can meet demand at a better price.

Nikola Tesla was billed by some as a mad scientist of his age. Elon Musk may well be labeled as a mad businessman of his own age. With big moves to make alternative energy a smart buy, he is tapping into a burgeoning industry and making waves. Keep an eye on Tesla’s stock value – it’s sure to please its shareholders.