Tesla’s photo voltaic installs drop, however battery enterprise is booming

Tesla’s once-leading photo voltaic enterprise is in decline, in response to the most recent figures from its fourth-quarter 2023 earnings report.

The automaker revealed on Wednesday that its photo voltaic deployments cratered by 36% to a complete of 223 megawatts (MW) final 12 months, down from 348 MW in 2022. Though excessive rates of interest slowed photo voltaic development in some markets, Tesla’s shrinkage got here as the USA notched a document 12 months general; the U.S. added 33 gigawatts of photo voltaic capability in 2023, per estimates from SEIA, a photo voltaic trade group.

It was a foul 12 months for Tesla photo voltaic — its worst since 2020. If we zoom in, the ultimate quarter of 2023 seems worse nonetheless.

In This autumn 2023, Tesla’s photo voltaic deployments dropped 59% year-over-year to 41 MW — down from 100 MW in This autumn 2022. Apart from blaming rates of interest, the agency provided no different rationalization for the wattage decline. At the least a part of the blame could fall on a shift in Tesla’s technique from installer to provider. The automaker laid off a few of its personal photo voltaic installers final 12 months and cancelled quite a few scheduled “photo voltaic roof” installations, per Electrek. Tesla purchased SolarCity a bit of greater than seven years in the past, for $2.6 billion.

Subsequent to photo voltaic, Tesla’s vitality technology and storage enterprise is booming (shock, shock). The corporate stated its vitality storage deployments — which embody Powerwall house batteries and utility-scale Megapacks, topped 14,724 megawatt hours (MWh) in 2023, up by 125% from the 12 months earlier.

Regardless of the general growth, Tesla commented that it expects some volatility in vitality deployments quarter-by-quarter, and the agency’s This autumn outcomes present as a lot. The automaker deployed 3,202 MWh in This autumn 2023; down from the prior three quarters, however up when you examine that determine to the identical quarter a 12 months earlier (This autumn 2022).

The dimensions of Tesla’s residential photo voltaic enterprise isn’t what it as soon as was. But, industrial and residential batteries nonetheless play a key position within the change to renewable vitality sources, as they retailer intermittently out there clear vitality for later use. Such batteries also can assist communities, and even whole islands and states, put together for excessive climate by lowering peak demand on the grid and offering backup vitality throughout outages. 

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