Tesla’s Solar Installations Experience 36% Drop in 2023
In a surprising turn of events, Tesla’s solar business faced a downturn, as indicated by its fourth-quarter 2023 earnings report. The electric vehicle giant reported a significant 36% decrease in solar deployments, totaling 223 megawatts (MW) for the year, compared to 348 MW in 2022.
Challenges Amidst Record Solar Growth in the U.S.
While Tesla’s solar business struggled, the United States marked a record year in solar capacity, adding 33 gigawatts in 2023, according to SEIA estimates. High-interest rates impacted solar growth in some markets, but Tesla’s decline contrasts with the overall positive trend in the country.
Q4 2023: A Tough Quarter for Tesla’s Solar Division
The final quarter of 2023 proved particularly challenging for Tesla’s solar deployments, with a staggering 59% year-over-year drop to 41 MW, down from 100 MW in Q4 2022. The company attributed this decline partly to a strategic shift from installer to supplier, including layoffs and canceled “solar roof” installations.
Energy Storage Business Thrives Despite Solar Setback
While the solar business faced setbacks, Tesla’s energy generation and storage segment experienced remarkable growth. Energy storage deployments, including Powerwall home batteries and Megapacks, surged by 125%, reaching 14,724 megawatt-hours (MWh) in 2023. Despite expecting some volatility in quarterly energy deployments, Tesla’s overall results highlight the resilience of its energy storage division.
Tesla’s evolving strategy acknowledges the changing landscape of residential solar, with a focus on energy storage as a key player in the transition to renewable energy sources. Commercial and home batteries not only contribute to clean energy storage but also enhance resilience in the face of extreme weather events, reducing grid demand and providing backup energy during outages.
Source：techcrunch.com
