Tesla recently released its latest quarterly financial performance report. The company deployed 1,295MWh energy storage systems in the third quarter of 2021, and the compound annual growth rate (CAGR) of energy storage projects over the past four years has reached 96%. The number of energy storage projects in the third quarter of 2021 increased by 71% compared with the same period last year, a slight increase from the 1,274MWh in the previous quarter of this year.

The company said that this is mainly caused by the maturity and promotion of Megapack Battery Energy Storage System (BESS) solutions. Tesla also announced in September that it will build a 40GWh battery plant in California to increase production capacity.

Tesla launched its stationary energy storage series in 2015, including the Powerwall energy storage system for residential use, the Powerpack energy storage system for commercial and industrial (C&I), and then the Megapack later in 2019. The battery energy storage system has a scale of 1.5MW/3MWh.

Industry media said that Tesla has deployed a 98MWh energy storage system during the quarter. Based on the calculations from the fourth quarter of 2016 to the third quarter of this year, the compound annual growth rate (CAGR) over the past four years has reached 96%. Tesla said that in the past 12 months, the company has deployed an approximately 3GWh Megapack battery energy storage system.

Tesla and the American renewable energy developer Arevon signed a contract for nine large-scale battery energy storage projects deployed in California, mainly for the 2GW/6GWh Megapack battery energy storage system supply agreement; and for the Arizona utility A 100MWh battery energy storage project of manufacturer SRP Company provides Megapack battery energy storage system.

Tesla won the first Megapack battery energy storage system order in Japan in August this year. Although the Megapack battery energy storage system provided by the company caught fire during the commissioning of the 300MW/450MWh Victorian Big Battery energy storage project in Australia in late July, after investigation, the two parties announced that the energy storage project is still safe and the test can be recovered before connected to the grid.

Earlier this year, Tesla stated that its energy business's goal is to increase profit margins, but then said that its energy division will continue to reduce costs, especially in terms of installation.

The market demand for energy storage systems seems to be very large. Tesla CEO Elon Musk said earlier this year that the company’s Megapack battery energy storage system orders have been scheduled to the end of 2022, and Tesla is working hard. Expand the production scale of Megapacks and Powerwalls.

Another news that Tesla announced a few days ago is that it has begun to use lithium iron phosphate (LFP) batteries in its various series of electric vehicles.

Lithium-ion battery (LIB) has become the main energy storage solution in modern social life. Among them, lithium iron phosphate batteries are a perfect substitute for lead-acid batteries, and are the first choice for grid-connected peak shaving, off-grid energy storage, photovoltaic energy storage, UPS, data center and other industries.

Solar power generation system with lithium battery energy storage system is a very promising clean energy.