Tesla has experienced a quarterly record for its energy storage business but information on its solar deployments was notably absent from its first quarter earnings report.
In previous reports, Tesla provided information on how many megawatts of solar it deployed each quarter. However, the Q1 2024 quarterly report didn’t include this data.
Solar deployments have been tapering off over the past few quarters, and while no specific numbers were given, Q1 2024 was no exception. The company said in its report that energy generation and storage revenues and profits were up, driven by Megapack deployments “partially offset by a decrease in solar deployments.”
In Q4 2023, Tesla deployed 41 megawatts of solar, a 16% decline from Q3 2023. When compared year-over-year, solar deployments dropped by 59% from 100 megawatts in Q4 2022. Solar deployments for 2023 totaled 223 megawatts, down 36% from 348 megawatts in 2022.
Tesla’s solar products include conventional solar panel systems as well as its Solar Roof, which replaces a home’s roof with photovoltaic glass roof tiles.
Despite the decline, Tesla is still active in solar projects and development. According to Electrek, Tesla has partnered with IronRidge, a solar mount manufacturer, to combine their respective products in an effort to cut down on rooftop solar costs.
In February, IronRidge announced its XR Flush Mount System is listed to UL3741 with Tesla equipment, allowing for system designs that don’t require module-level power electronics. This, according to the company, reduces material, installation and service costs.
Last November, plans were revealed that Tesla will build the world’s largest rooftop solar installation on its gigafactory in Austin, Texas. According to Tesla officials, the system would pull roughly 30 megawatts when completed using 70,000 solar panels.
Solar Roofs were at the center of a class-action lawsuit customers brought against the company last year, saying they experienced price hikes after agreeing to have the system installed on their homes. Judge Vince Chhabria of the U.S. District Court for the Northern District of California granted final approval of the settlement on March 8, 2024.
Record-High Energy Storage
Energy storage continues to boom for Tesla. Deployment increased sequentially in Q1 to a record high of 4.05 gigawatt-hours, something CEO Elon Musk noted during the Q1 2024 earnings call.
“Energy storage deployments, the Megapack in particular, reached an all-time high in Q1, leading to record profitability for the energy business, and that looks likely to continue to increase in the quarters and years ahead,” Musk said, adding it will be “significantly faster than the car business.”
The deployment is a 26% increase from Q4 2023, where it deployed 3.2 gigawatt-hours, and a 4% increase from Q1 2023. Tesla deployed a total of 14.7 gigawatt-hours in 2023, which was a 125% growth from 2022.
“We expect the energy storage deployments for 2024 to grow at least 75% higher from 2023,” said Vaibhav Taneja, chief financial officer.
Revenues for energy storage increased 7% year-over-year and gross profit was up 140% year-over-year, with the company saying it is Tesla’s “highest margin business.”
Tesla’s energy storage products include the Powerwall for residential use, Powerpack for businesses and Megapack for utilities and large commercial projects.
