Tesla Motors, Inc.
) batteries will be offered along with
) commercial solar systems. Tesla's batteries will be providing a
backup power source to its customers and support in reducing the
consumption of electricity and hence the electric bill.
Solar systems need to depend on sunlight. However, Tesla's
batteries will help the customers in times of solar blackout as
well. In addition, Tesla's batteries will provide an alternative
source of energy during power cuts. The batteries will help the
functioning of critical systems for several hours or for several
days if it gets charged from the solar energy during the day
Moreover, commercial consumers have to pay charges for the entire
amount of electricity they may need from the grid at any one
time. This is known as demand charges in the electric industry.
The solar panels and Tesla's battery packs intend to reduce those
demand charges. It is expected that the addition of Tesla's
batteries will reduce demand charges by 20%.
In today's world, efficiency programs together with advanced
appliances are helping the customers to decrease their energy
consumption. Solar panels and other power sources like Tesla's
batteries are providing alternative energy sources. Eventually,
this is reducing the demand charges and creating a softer market
for electricity sales.
SolarCity will install Tesla's batteries in the systems at no
extra cost. Rather, the batteries will charge 20% less than the
local utility's demand charges. At present, the batteries will
only be available at places with high demand charges. The places
include California, Massachusetts and Connecticut.
Tesla designs and manufactures electric vehicles and electric
vehicle powertrain components. The company currently retains a
Zacks Rank #3 (Hold). SolarCity is a provider of solar power
service, monitoring and maintenance services to homeowners,
businesses, schools, non-profits, and government organizations in
the U.S. SolarCity presently retains a Zacks Rank #3. Elon Musk,
the founder of Tesla, owns about 73% of SolarCity.
Other major automobile stocks worth considering are
Ford Motor Co.
). Both carry a Zacks Rank #2 (Buy).
DAIMLER AG (DDAIF): Get Free Report
FORD MOTOR CO (F): Free Stock Analysis Report
SOLARCITY CORP (SCTY): Free Stock Analysis
TESLA MOTORS (TSLA): Free Stock Analysis
To read this article on Zacks.com click here.