Tesla confirms plan to use own inverters for SolarCity installs

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
Tesla will develop its own power electronics to tie together its PV, storage and electric mobility offerings. Source: Tesla.

Tesla will make its own inverters for use with SolarCity PV installs and its own energy storage products, according to its chairman and CEO, Elon Musk.

A US$2.6 billion acquisition of SolarCity, the largest residential solar installer in the US, has been finalised and will now be put to shareholders.

Tesla, which recently shifted its mission statement’s focus from sustainable transport to sustainable energy, will look to develop the power electronics required to unite its storage, mobility and solar offering.

Responding to a question from an analyst during the company’s quarterly results call, Musk said:

“…There's no question Tesla's going to do integrated inverter. It's the logical thing to do. I think we've got the most advanced inverter engineering team in the world, and so it makes sense to, just as we do the inverters on vehicles, to do it with solar as well and have it in a very tight package at a cents per Watt level that is, I think, probably twice as good as anyone else. I think maybe better than that.”

The SolarCity deal has led many to forensically examine the synergies between the two companies and the opportunities. Musk described the inverter play as an “obvious move” adding that most people didn’t know what an inverter was.

“…If you place yourself in the consumer's shoes, [they] just want it to work. [They] don't want to know how it works. [They] don't care about the details. It's just got to work reliably, look good, not take up a tonne of space [and] the buying process has got be easy. You can check up on it with the app on your phones. There's only one phone app. You want it to be easy. You want it to just work. You want it to be affordable. You want it to look good. So, that's what we're going to do.”

Several manufacturers currently make inverters for the Tesla Powerwall including Fronius, SMA and SolarEdge.

SolarCity is also understood to be SolarEdge’s largest customer.

SolarEdge’s last quarterly results (Q1, 2016) stated that for the year ended 30 June, 2015, one major customer accounted for 24.6% of its consolidated revenues. In the three months ended 31 March 2016, two major customers accounted for 26.7% of its consolidated revenues.

Transcript of conference call provided by Seeking Alpha.

Read Next

January 27, 2022
Tesla’s solar installations jumped 68% in 2021 to 345MW despite a slight dip in additions year-on-year during the fourth quarter.
January 26, 2022
Home security giant ADT is evolving from a security company to a smart home company, with around 80% of its revenue coming from its smart home business, said its president and CEO Jim DeVries
January 24, 2022
More than 260 companies in the US clean energy sector are demanding urgent action on the US$1.75 trillion Build Back Better (BBB) Act, claiming that US$2 billion is being lost in economic activity every month the long-awaited bill is delayed.
January 24, 2022
The average cost of forecasting errors in the US is lower than previously thought at less than US$1/MWh, according to a study by Berkeley Lab that employed a new, publicly available method to examine the practice.
January 21, 2022
Toronto-based renewables developer Amp Energy has closed on a US$350 million credit facility to advance on a global portfolio of renewables and battery energy storage assets.
January 19, 2022
Chinese inverter manufacturer Sungrow has launched its new "1+X" central modular inverter with an output of 1.1MW at the World Future Energy Summit in Abu Dhabi.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
February 23, 2022
London, UK
Solar Media Events
March 8, 2022
London, UK
Solar Media Events
March 23, 2022
Austin, Texas, USA
Solar Media Events
March 29, 2022
Lisbon, Portugal
Solar Media Events
April 25, 2022
Berlin, Germany