Solar PV plus battery solutions: Prices poised to plummet
By Jack Ward, CEO of Soltra Energy
I’m on record as saying that the Tesla
Powerwall, the revolutionary wall-mounted lithium-ion battery-pack, will gain
general marketplace acceptance faster than predicted.
The latest news from Tesla certainly
supports this. At launch earlier this year, the Powerwall was cheaper than most
industry watchers were prepared for, mainly because Elon Musk, the South
African-born founder of Tesla, was determined to demonstrate the broad global acceptance
of his brainchild.
Now, the prices for all variants of the
Tesla Powerwall are falling faster than expected even before the first
Powerwall has been shipped! For example, the average Tesla Powerwall battery
price on launch was around US$ 547/kWh. Now it’s around $350/kWh and set to
breach the $300/kWh price point soon. What will it be when worldwide distribution
begins in 2016?
According to industry watchers, Tesla’s
batteries are already seven years ahead of the market when it comes to pricing,
giving tens of millions more customers the opportunity to cost-effectively
install solar PV plus battery systems in their homes.
Consequently, when the customer-friendly,
aesthetic, well-designed Tesla Powerwall makes its appearance in SA it will
have a ready market waiting. Expect stocks to evaporate faster than water in a
parched desert. Globally, reserve orders are mounting - around $800-million
worth as we speak.
Why are prices falling so fast? It’s due to
the battery’s application in the automotive market. In the US, electric
vehicles are big business. Already more than 3 million electric-drive vehicles
are on the roads. Tesla, BMW and now Mercedes-Benz are vying for the lion’s
share of this burgeoning market.
Bringing down the cost of an electric
drivetrain is therefore an important step in increasing the adoption of
zero-emission vehicles. Vehicles sales are thus at the centre of this
development.
Here, in electricity-starved SA, electric
vehicles may not be a priority, but preparing for disruptive load-shedding and soaring
electricity prices is. With Testla lighting the path ahead, cheap battery storage
is set to boost the acceptance of rooftop solarPV plus battery solutions beyond
all projections. It’s a technology whose time has finally arrived.
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