![]() Sometimes called a ‘hub’, this central location is where all the technology is stored in a secure room, often underneath the solar panels themselves. This is done by installing large, high quality solar panels and batteries in a central location. Using energy generated from the sun, the system captures, stores, and distributes clean electricity to an entire community. Think of it in the same way that you and your neighbours receive your electricity – through a shared network. ![]() There's no doubt that expanding into new products like energy storage and microgrids is a positive for SolarCity, but what impact will it have on the income statement? That remains to be seen.Solar Microgrids are integrated networks or ‘grids’ of power. When you're talking about selling to the military, or communities, or college campuses there will be greater competition for SolarCity to overcome, and we don't know if those customers will even demand their product. Even solar companies like SunPower, First Solar, and SunEdisonseem to be more natural fits in the microgrid space, because they're used to building larger solar systems that many of SolarCity's intended customers would demand. In microgrid services, SolarCity is going after a market that companies like Siemens and General Electric are targeting, no small competitors for SolarCity to face. As it has expanded into residential solar, it was competing against utilities that have failed to innovate or keep costs down, and a rag-tag group of installers that had little scale to compete with SolarCity's infrastructure. SolarCity's toughest sell yetWhile this is an interesting addition, it may be a tougher sell than residential solar has been so far for SolarCity. We'll see if SolarCity can figure out a model that works. There's value in having back-up power, sure, but what is it worth, and how are you going to justify paying for it? Unlike electricity from solar panels, there's no great cost comparison, and the market has yet to figure out how to price storage or microgrid services. The question is, how will customers value energy storage or back-up power in case of emergencies? This is the core unknown facing energy storage, no matter which company is installing it. Depending on how Tesla's battery technology and cost structure end up in a competitive battery market the tie-up could give both companies a competitive advantage in energy storage. Source: SolarCity.Įlon Musk unveils the energy storage platform SolarCity is leveraging its partnership with Tesla Motors for the batteries that will power GridLogic, which shouldn't be a surprise considering how closely the companies are tied. SolarCity is hoping communities like this one will value energy storage and the other microgrid services they'll be offering. ![]() It's an interesting addition to the product line, but it's unknown how big the impact will be for the solar installer. SolarCity views it as a way to expand beyond solar systems and is targeting municipalities, campuses, military bases, and remote communities for this new product. The product is called GridLogic, and it's a combination of energy storage and smart controls for the grid. SolarCity made a big move this week that could expand its business into microgrids as well as international operations. ![]()
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