Tesla has received a significant order from Clearway Energy Inc. for 490 MW/1,356 MWh of Megapack battery energy storage systems.
The new order, worth an estimated $450 million, will expand Clearway’s existing fleet of Tesla Megapacks, which already totals 520 MW/1,680 MWh and is currently being installed across multiple sites in Utah and Texas. Once both orders are delivered and operational, Clearway’s Tesla-powered energy storage capacity will exceed 1 GW.
The Megapack 2 XL units for this order will be manufactured at Tesla’s dedicated energy storage facility in Lathrop, California. Deliveries of the Megapack units are expected to begin in 2026 and will support Clearway’s energy storage projects in California and Colorado.
According to Clearway, Tesla’s utility-scale Megapack systems will be used to provide grid reliability services and help integrate renewable energy sources by storing electricity during periods of low demand and dispatching it when needed.
“Energy storage plays an essential role in our nation’s energy security, affordability, and reliability,” said Frances Cook, Vice President of Procurement at Clearway, in a statement announcing the deal. “We’re pleased to partner with Tesla to supply our grid-enhancing systems with American-made energy storage equipment.”
The new order follows Clearway’s earlier announcement in March 2025 of a 320 MW energy storage project in Utah, which will use Tesla Megapacks across four separate sites and is expected to offer up to 1,280 MWh of dispatchable power.
Tesla’s energy storage business, while smaller than its automotive division, continues to grow as utility and commercial customers invest in battery systems to support renewable energy goals and grid stability. The company has expanded Megapack production in recent years to meet rising demand, opening two dedicated Megafactories in California and most recently in China, each of which are capable of production 10,000 Megapacks per year.
Plans have also been revealed for the company to open its third Megafactory, located in Houston, Texas.
