This article first appeared on the BNEF mobile app and the Bloomberg Terminal.

Solar-plus-storage project costed at $2.51 per watt

U.S. households continue to pay over $3 per watt for solar

How the Tesla virtual power plant could work

Source: Bloomberg New Energy Finance. Note: This schematic applies the first two phases of the program only and reflects only one way in which the virtual power plant could work. It is unclear who will own and operate the systems.

Tesla is partnering with the South Australian government to deliver Stage 1 of the world’s largest “virtual power plant” — 250 megawatts of interconnected rooftop solar and battery storage systems distributed across 50,000 households. The A$800 million ($628 million) plan highlights the divergent paths of the Australian and U.S. solar industries, promising to deliver solar-plus-storage systems for about 20 percent less than the price of a solar-only system in Tesla’s native market. U.S. residential solar prices averaged $3.15 per watt in 4Q 2017, versus $1.46 (A$1.90) per watt in Australia. SolarCity’s costs averaged $2.89 per watt in 3Q 2016, the last time Tesla reported figures.

BNEF clients can see the full report, “Tesla’s Virtual Power Plant Pilot Could be World Model”, on the Terminal or on web.

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