Tesla Motors wins 20 MW energy storage contract in California

Tesla-Battery Power For Homes

Tesla Motors will supply its Powerpack energy storage technology in California, as part of a deal with Southern California Edison to prevent power outages with lithium ion batteries, according to reports.

According Bloomberg New Energy Finance, the Tesla batteries would store enough power to run 2,500 homes for a day.

The Tesla batteries will make up the biggest lithium ion battery project in the world in terms of total megawatt hours.

The value of the batteries has not been reported, but Tesla Motors' website lists the price of a 2 MW battery system at almost $3 million. This is the largest capacity one can purchase without dealing directly with Tesla Motors.

Tesla announced in August that it would buy solar panel maker SolarCity Corp. Tesla currently makes two luxury vehicles — the Model S sedan and Model X SUV— as well as Powerwall and Powerpack energy storage units for homes and businesses.

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