Why Tesla's Powerwall Is Just Another Toy For Rich Green People
MAY 1, 2015
Christopher Helman
FORBES STAFF
All the breathless coverage of Elon Musk’s Powerwall battery brouhaha last night is missing the most important thing: a sober discussion of real-world costs. So let’s take a look at the costs and see if this world-shaking, game-changing innovation really makes any sense.
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And here’s where the economics of the Powerwall break down. If you do not have a big enough solar system to get your home entirely off the grid, then there is simply no point whatsoever in paying 30 cents per kwh to get electricity via the Powerwall. At night, when you’re not generating solar power, you could simply get your electricity from the grid. For an average 12.5 cents a kwh.
I’ll say it another way:
No doubt battery technology is important for the management of the power grid of the future, but at this time the average homeowner should let the big power generation utilities take the risks and bear the costs of perfecting the technology. After all, any truly viable energy source is more economic when deployed on a large scale than on a small scale. Along with the Powerwall, Musk last night unveiled the utility-scale Powerpack that could deliver 100 kwh. No price for that one yet. Whether Tesla can sell these will be the real test.
Musk with utility-scale “Powerpack.” (Photo by Kevork Djansezian/Getty Images)
http://www.forbes.com/sites/christo...ll-is-just-another-toy-for-rich-green-people/
MAY 1, 2015
Christopher Helman
FORBES STAFF
All the breathless coverage of Elon Musk’s Powerwall battery brouhaha last night is missing the most important thing: a sober discussion of real-world costs. So let’s take a look at the costs and see if this world-shaking, game-changing innovation really makes any sense.
---///---
And here’s where the economics of the Powerwall break down. If you do not have a big enough solar system to get your home entirely off the grid, then there is simply no point whatsoever in paying 30 cents per kwh to get electricity via the Powerwall. At night, when you’re not generating solar power, you could simply get your electricity from the grid. For an average 12.5 cents a kwh.
I’ll say it another way:
- Unless your solar-powered home is entirely disconnected from the grid, or your solar system is big enough to provide for all your electricity needs,
- an expensive battery backup system like Powerwall does not make economic sense.
No doubt battery technology is important for the management of the power grid of the future, but at this time the average homeowner should let the big power generation utilities take the risks and bear the costs of perfecting the technology. After all, any truly viable energy source is more economic when deployed on a large scale than on a small scale. Along with the Powerwall, Musk last night unveiled the utility-scale Powerpack that could deliver 100 kwh. No price for that one yet. Whether Tesla can sell these will be the real test.
Musk with utility-scale “Powerpack.” (Photo by Kevork Djansezian/Getty Images)
http://www.forbes.com/sites/christo...ll-is-just-another-toy-for-rich-green-people/
