Tesla’s solar installations plummet to new low as energy storage hits new high

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
There was no update on Tesla's rooftile product and installs as retrofit PV installs plummeted to a record low in Q2. Image: Tesla

In reporting second quarter 2019 financial results, Tesla’s solar installations reached a new record low, while its ‘Powerwall’ and ‘Powerpack’ energy storage products set a new deployment record. 

Tesla’s retrofit solar installations plummeted to only 29MW in the second quarter of 2019, down from 47MW in the previous quarter, then a new low for the company.

Tesla’s retrofit solar installations plummeted to only 29MW in the second quarter of 2019, down from 47MW in the previous quarter, then a new low for the company.

The reason for the 40% quarter-on-quarter decline in solar installations remained unanswered in Tesla’s Update Letter, which provided the slimmest narrative on its Energy division, since acquiring SolarCity in late 2016. 

“We are in the process of improving many aspects of this business to increase deployments,” read Tesla’s Update Letter for the reporting period.

In stark contrast, Tesla reported that it’s Powerwall and Powerpack deployments increase by 81% in the second quarter of 2019, achieving a record 415MWh. This comes after being capacity constrained at Gigafactory 1 through 2018 and a complete stop in production allocation of energy storage products to meet EV Model 3 demand.

 Powerwall and Powerpack deployments increase by 81% in the second quarter of 2019, achieving a record 415MWh.

Tesla noted that its Powerwall product, primarily for residential applications had cumulative installs that had surpassed 50,000 site locations in the reporting quarter.
 
During Tesla’s earnings call with financial analysts, Tesla’s management noted that battery cell production volume had continued to ramp in-line with the production ramp rate, reducing capacity constraints that enabled the surge in energy storage installs. This was all said to be due to a new storage system module line, designed by Tesla Grohmann that entered production.
 
Due to the significant upswing in energy storage deployments, offset by the heavy decline in solar installations, the Energy division revenue reached US$368.2 million, up 13%, quarter-on-quarter but down 2% from the prior year period.

The Energy division revenue reached US$368.2 million, up 13%, quarter-on-quarter but down 2% from the prior year period.

Energy division gross margin in the second quarter of 2019, increased to 11.6%, compared to only 2.4% in the previous quarter, while lower than the 11.8% gross margin set in the prior year period.

The company did not provide any guidance for solar or energy storage for the third quarter of 2019. 

Solar and energy storage deployments are going in opposite directions at an accelerated pace.

Read Next

September 21, 2021
India added 521MW of rooftop solar in Q2 2021, an increase of 517% compared to the 85MW added in the same quarter last year despite a slight increase in costs, according to a Mercom India report.
September 17, 2021
US utility company Dominion Energy Virginia has proposed 15 new energy projects totalling 1GW of power for the state, which Dominion Energy claimed was the largest group of projects to be submitted to the Virginia State Corporation Commission (SCC)
September 16, 2021
Australia’s government has committed AU$19.2 million (US$14 million) to implement the recommendations of a new report that that aims to improve regulation and compliance in the country’s rooftop solar sector.
PV Tech Premium
September 16, 2021
Spencer Jansen, head of new technology solutions at developers Hive Energy and Ethical Power, assesses how the introduction of large-format solar modules has had repercussions throughout the solar design and procurement process.
PV Tech Premium
September 15, 2021
Record-breaking power prices across Europe have turned the spotlight on the role fossil fuel plants play in generating electricity and how the transition to renewables-plus-storage could lower consumer bills.
September 14, 2021
The Senate of Illinois has passed legislation that will commit the US state to reaching 50% renewables by 2040 and 100% carbon-free electricity by 2045.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
BRISTOL, UK
Solar Media Events
December 1, 2021