Tesla has secured what may be its biggest Megapack contract ever with Intersect Power, in yet another sign that revenue from Tesla’s Energy Division could soon outpace that from the automotive side of the business.
According to Intersect Power, it will receive 15.3 gigawatt-hours (GWh) of Megapacks from Tesla through 2030. The batteries will be used at a number of Intersec’ts solar and storage project during that timeframe, with Intersect saying over half of the order will be used at four Battery Energy Storage System (BESS) projects in California and Texas.
The first Megapacks from this order are expected to be delivered to Intersect Power by 2025. The Megapacks will come from Tesla’s Megafactory in Lathrop, California, with the company expecting to begin operations of the first project in 2027.
The financial terms of the deal were not disclosed, but using Tesla’s advertised prices, this deal is worth around $3.7 billion.
To give some perspective on the size of this contract, Tesla’s total energy storage deployments in Q1 2024 were just over 4GWh, which by itself was a record and the first time the company had ever deployed over 4GWh in a single quarter. That record was then broken in Q2, when Tesla deployed 9.4GWh. With this deal Tesla will be delivering, on average, 2.55GWh every quarter over the next six years.
Until Q2 2022, Tesla had not deployed more than 2GWh of energy storage in a single quarter.
Intersect Power is a frequent customer of Tesla. The company currently has 2.4 GWh of Megapack storage either in operation or under construction, including 1 GWh in operation at the Oberon solar and storage facility and 448 MWh in operation at the Athos III solar and storage facility, both in California.
Tesla’s Energy Division continues to grow at an extremely rapid pace. This is the third large Megapack contract for Tesla in less than a week. In Australia Quinbrook Infrastructure Partners, signed a new contract for additional Tesla Megapacks, bringing the total connection capacity of the Supernode project in Brisbane to 500 MW, and the total storage to 1560 MWh. While Tesla Megapacks will be adding over 1,660MWh of storage capacity to the Orana BESS near Wellington, New South Wales.
