SolarCity is using batteries from Tesla Motors for energy storage

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As part of an effort to develop a solution to cut the special power fees associated with periods of highest demand, SolarCity is partnering with Tesla Motors on a new battery system. The batteries are about the size of a small fridge and the software can control when a building’s operations run on power from the solar array. The battery system is called DemandLogic and it will allow businesses to store electricity at times of highest demand.

This reduces usage at peak periods and reduces the fees known as demand charges. The systems would provide backup power and a working solar array during blackouts. Around 300 residential customers signed up for a pilot program using battery packs from Tesla Motors.

It’s fair to believe that there is nepotism involved in this deal. Tesla Motors CEO Elon Musk is also the cousin of SolarCity CEO Lyndon Rive. Musk is also the chairman of SolarCity and was an investor in the company back in 2006.

SolarCity will be offering storage systems in California, Connecticut, and Massachusetts. The systems will be available to new solar customers that sign 10-year service agreements. The company would be able to demand charge reductions, which is expected to run around 20%.

[Source: New York Times]

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