How Tesla Can Turn Distributed Power Plants into Reality

How Tesla Can Turn Distributed Power Plants into Reality

Tesla’s chief executive officer, Elon Musk, said this week that his vision is to turn every home into distributed power plants. At first, it does sound like a radical idea but it appears that Tesla is more than capable of doing so as they have already started installing solar panels on the roof and Powerwall to the home.

Elon Musk made a point that the homeowners in Texas and California suffered from rolling blackouts in recent years due to extreme weather. The winter storm left Texas battered and with a massive energy debt worth billions of dollars that the state and customers have to pay for. While the heat waves put an immense strain on California’s energy grids and caused it to collapse, leaving the homeowners to endure the sweltering heatwaves.

Through the use of distributed generation, houses that generate electricity through renewable sources such as solar will be able to power the structure. Any excess energy that the homeowners do not use or need gets stored in a Powerwall that serves the role of energy storage.

When the Powerwall has reached maximum energy capacity, the rest of the excess energy gets sent through a utility transmission line. Which is then distributed to the customers who need the energy. By distributing excess energy, the homeowners get a refund for overproducing energy.

Energy security is increasingly becoming an important issue in the United States and around the world as well. An islander couple saw their monthly electric bill drop from $1,000 to just a little under $700 by converting their residence into a distributed power plant, using Tesla solar panels and energy storage products.

Tesla Wants to Turn Every Home Into a Distributed Power Plant

Currently, the homeowners and businesses rely too much on centralized power plants to deliver electricity. Throughout the delivery systems, some of the lines lose electricity along the way that reduces the overall effectiveness. Tesla aims to convert homes and businesses into distributed power plants so that way they can produce energy effectively and reduce reliance on the energy grids.

In exchange, the overall energy infrastructure resiliency improves and the cost of electricity goes down through modernized electric delivery systems. Solar panel technology has been improving on the effectiveness of converting solar energy to electricity in recent years.

The cost to install solar panels on the roof also is becoming affordable as more and more homeowners are adopting the clean green energy way. Homeowners who own existing Powerwall 2 units will see their overall power capacity increase up to 50% based on the production date.

Tesla also has been working quietly on Powerwall 2 Plus until this week when Elon Musk said the new product has been in production since November 2020. The new Powerwall 2 Plus will be hitting the home battery pack sector by end of the 2021 or next year at the latest.

Tesla has been struggling to meet the overwhelming customer demand for solar panels and energy storage products. This is a healthy indication that there is strong interest from the homeowners and businesses who are increasingly adopting cost-saving and energy-effective ways to produce electricity.

Elon Musk’s radical idea of distributed power plants might be coming sooner than most people expect and Tesla is already doing that by bundling solar roof and energy storage products to scale their business.

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