Two sources with knowledge of the idea claimed that Tesla (TSLA.O) has developed plans to build and market battery storage systems in India and has submitted a proposal to government authorities looking for incentives to open a facility. This comes as Elon Musk makes more efforts to establish himself in the nation.
For weeks, Tesla has been directly conversing with Prime Minister Narendra Modi about establishing a new electric vehicle (EV) factory in India to produce cars costing roughly $24,000. However, there have been no reports of its renewable energy drive.
The sources, who declined to be identified since the topic is private, stated that during recent conversations in New Delhi, Tesla recommended assisting the nation’s battery storage capacities with its “Powerwall” technology, which can store energy from solar panels or the grid for usage at night or during outages.
One of the sources added that although Tesla requested a variety of incentives to establish a battery storage factory, Indian officials made it clear that they would not be granted. However, they emphasized that by providing subsidies to consumers who buy such things, the government may assist the corporation in developing a fair economic model.
According to the first source, it is uncertain whether the idea will be implemented, even though both Tesla and the Indian government continue to be interested in it, and New Delhi is still considering it.
The second source added that the Powerwall proposal was a part of the American company’s intentions for a more extensive presence in India, thinking beyond EVs, and that Tesla was eager to find residential and industrial clients for its battery storage systems.
“Large policy level calibration will be required. Tesla intends to have the Powerwall business in India,” said the source.
Tesla, the chief spokeswoman for the Indian government, or the commerce ministry did not answer requests for comment.
Despite increasing town and village energy supplies, India still has peak-time shortages due to rising demand. Due to the high cost and limited adoption of storage technology, it is heavily dependent on coal-based power generation.
Due to issues with the transportation of coal, India experienced its greatest energy crisis in more than six years last year. Additionally, the possibility of nighttime power outages when solar energy is not accessible has increased due to delays in increasing coal and hydropower capacity.
By 2030, the nation wants to raise its non-fossil fuel power capacity from its current level of 186 GW to 500 GW.
POWERWALL
Tesla’s Powerwall is a modern, one-meter-tall device that may be mounted outside or in a garage.
Modi evaluated the device while Musk was there during a 2015 visit to Tesla’s campus in California. Modi later remarked that he had appreciated talking about how battery technology could benefit farmers.
Without going into further detail, the second source indicated that if the India plan is successful, Tesla may look into developing more substantial solutions for the industry. Powerwall is intended for residential and light commercial use.
According to the first source, Indian officials have also told Tesla that it must lower the price of its battery storage goods because demand is anticipated to be relatively high. The government might aid in opening up the market, the first person said.
In California, Powerwall costs more than $5,500 after rebates and solar panel expenses. It qualifies for local, state, and utility incentives for solar and energy storage as well as federal tax credits in the United States.
At first, Powerwall users in Houston and Dallas recently decided to return any excess energy to the Texas power system.
