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Tesla makes game-changing announcement regarding home battery storage system: 'There is no happiness'

The island's electrical problems are blamed largely on failing infrastructure.

The island’s electrical problems are blamed largely on failing infrastructure.

Photo Credit: iStock

Tesla's Powerwall 3 is now available in power-poor Puerto Rico, according to a post on the social media site X, formerly known as Twitter, from late last year. The home-based energy storage system could be a crucial tool in the fight against blackouts for an island territory often plagued by them. 

The Associated Press reported that 1.3 million Puerto Ricans were left in the dark on New Year's Eve. The island's electrical problems are blamed largely on failing infrastructure, made worse by hammerings from severe hurricanes

"There is no happiness," an islander identified only as Manuel told the AP.

The issue is, in part, our planet's overheating. While every severe storm can't be blamed on rising mercury, NASA has linked it to increased risks for catastrophic coastal storms, among other environmental concerns. 

Home-based battery packs like Powerwall offer a solution on two fronts. By storing renewable energy for later use, homeowners can reduce the amount of heat-trapping air pollution being created to generate electricity elsewhere. 

The batteries also provide protection against troublesome blackouts, especially when networked together through Tesla's virtual power plant, or VPP, program. VPPs work by leveraging stored power that was generated by solar panels. Batteries are linked to others, providing strength in numbers, sending excess juice to support the grid. Better yet, participants are compensated for the electricity they ship out, all per Tesla. Or, you can use the power to keep the lights on in your own house. 

Teslarati reported the Puerto Rico VPP has the potential to become Tesla's largest, with 75,000 participants already. There are around 750,000 Powerwalls installed globally, with about 100,000 of them in VPPs, the report added. 

Stateside, VPPs are making an impact, as well. And other companies, including sonnen, have similar products that are providing for market competition. 

For Powerwall 3's part, it is "able to start up larger appliances than its predecessor, so you might not need as many batteries to back up your home. Its increased power capacity and whole-home battery storage can better support grid reliability during periods of high demand, such as high summer temperatures," CNET reported in a review. 

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As far as cost, the online publication added that Powerwall 3 runs more than $9,000 per unit, depending on location and some other factors. Steep tax breaks remain available stateside, as well as in Puerto Rico, according to the government and SaveOnEnergy. 

What's more, a government study recently found that Americans save on average around $700 per year on energy costs with solar panels. That's even after factoring out the initial expenses to install them. VPP participation could provide even more cash. 

It's a sector poised for growth. Teslarati reported that Tesla owner Elon Musk expects the energy storage side of his business to continue to grow, outpacing even his popular automotive operation. 

"Energy and service now contribute over half a billion to quarterly profit," Musk said in a Q3 2023 earnings call, per Teslarati. 

Moving forward, Powerwalls could play a key role in bolstering energy systems, particularly for coastal areas and islands like Puerto Rico, Cuba, and elsewhere. 

For their part, leaders on the territory seem ready for improvement. 

"We can't keep relying on an energy system that fails our people," newly elected Puerto Rico Gov. Jenniffer González Colón wrote on X, per the AP report

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