Tesla Motors, US electric vehicle manufacturer has entered the energy storage industry with the launch of its “Tesla Energy” project offering homes, businesses and utilities a “suite of batteries” to boost renewable energy use and decrease dependence on fossil fuels.

Tesla’s rechargeable lithium-ion battery allows households and businesses to store surplus energy they get from installed solar roof panels and use the excess energy at a later stage.

Elon Musk, Tesla’s CEO introduced the new “Powerwall Home Battery” in California consisting of a series of batteries ranging from 7 kWh to 10 kWh. The 10 kWh battery works as a back-up and has the potential to run an entire household, should a power outage occur, the 7 kWh is utilised for everyday use.

Commenting on the increasingly competitive energy storage market, Uwe Sauer, an energy storage expert at the Technical University Aachen said: “Because these batteries have gone into mass production, we are seeing the prices decrease faster than predicted.

“The prices are already lower than what was expected for 2020.”

Another industry representative, Eicke Weber, director of the Fraunhofer Institute for Solar Energy Systems told DW:  “Solar energy only costs 10 euro cents per kilowatt hour in Germany, as opposed to 29 cents for regular energy straight from the power outlet.”

Weber expects that there will be a sharp increase in demand for these special batteries.

"In California, energy storage devices are already cheap today, and storing the energy only costs 10 cents per kilowatt hour.

"It will be interesting for individuals looking to optimize their energy supply. The revolution in energy storage will manifest itself quickly over the next few years," Weber added.