Tesla and Sunrun join hands to provide a complete energy-storage solution for Hawaiian

Published By: Patrick Arruda on March 14, 2016 12:55 pm EST

Tesla Motors Inc (NASDAQ:TSLA) is rapidly expanding its newly formed energy-storage unit, Tesla Energy, partnering with residential solar company Sunrun Inc (NASDAQ:SUN). The startup will be offering Tesla Powerwall systems along with its home solar-energy package.

Getsolar.com reported that Sunrun’s “Brightbox” which would combine its solar panels and smart inverters, along with Tesla’s home battery technology to provide a complete solar-energy storage system for Hawaiins. The package will be gradually rolled out in other US states later in 2016.

The San Francisco-based company’s offering its storage product, along with a service package, under pre-paid or monthly lease program and additional cash and financing option. It would provide customers opportunity to produce power during day time and store it during night. The technology is expected to thrive in Hawaii, as the state recently changed its Net Energy Metering (NEM) compensation program reducing rates for power sold to the grid.

Home solar-energy deployment is the most expensive in Hawaii among other US states, partially due to historically highest power expenses. Oil, which is imported into the island, is the main source of power generation in the state. Additionally, Solar has been already flourishing in Hawaii, as 20-30% of Hawaiian households use it.

Hawaii Public Utility Commission (PUC) eliminated the retail NEM rates and developed Self Supply Programs: Customer Grid Supply (CGS) and Customer Self Supply (CSS). While CGS customers get credit, varying from 15.07-27.88 cents per kWh, for resending power back to the grid, CSS is aimed to promote solar photovoltaic installations which are not formed to send power to the grid.

While keeping some of new clean-energy self-consumed and self-contained, CSS will allow Hawaiians to remain connected to the grid as a back for at least $25 per month. Sunrun and other renewable-energy companies are rapidly upgrading their offerings to cater to different markets. Sunrun partnership with Tesla shows that it sees the Powerwall as the leading home-storage product in the market.

Tesla has been planning to introduce its storage products in Hawaii, as it stated in 3QFY Shareholder Letter: “Recent changes to feed-in tariff structures in Hawaii also create a large storage market in the state.”

Earlier this year, Powerwall German rival, Sonnen launched its sonnenBatterie in Hawaii offering a 4-kWh battery with smart energy management system at roughly $10,000. Tesla sister company, SolarCIty Corp (NASDAQ:SCTY) is also using Tesla Powerpack to establish a energy-storage system for Kaua’I Island Utility Cooperative.