Tesla releases more details about its Solar Roof agreement with Panasonic at ‘Gigafactory 2’
In order to bring to market its new series of ‘Solar Roof’ products, Tesla announced last year that they are bringing together a lot of technologies under one roof at their newly acquired factory in Buffalo, now known as ‘Gigafactory 2‘. It includes tech developed in-house by Tesla, some tech by Panasonic, and tech from SolarCity and its subsidiaries.
The deal is somewhat complicated with a lot of moving parts, which now clearly shows why Elon Musk wanted Tesla to acquire SolarCity since it will simplify the complicated partnership.
Through Tesla’s acquisition of SolarCity, they inherited an agreement with the Research Foundation for the State University of New York for the construction of an approximately 1 million square foot manufacturing facility, which is now mostly completed.
The deal is under a Build-to-Suit Lease model. Tesla explains the deal in a SEC filing released this week:
“The Foundation will cover (i) construction costs related to the manufacturing facility in an amount up to $350.0 million, (ii) the acquisition and commissioning of the manufacturing equipment in an amount up to $348.1 million and (iii) $51.9 million for additional specified scope costs, in cases (i) and (ii) only, subject to the maximum funding allocation from the State of New York, and we will be responsible for any construction and equipment costs in excess of such amounts. We will own the manufacturing facility and manufacturing equipment purchased by the Foundation. Following completion of the manufacturing facility, we will lease the manufacturing facility and the manufacturing equipment owned by the Foundation from the Foundation for an initial period of 10 years, with an option to renew, for $2 per year plus utilities.”
That’s a pretty sweet deal, but in return, Tesla has to achieve a series of milestone or otherwise it will have to pay penalities.
Here are the main milestones listed in the filing:
- employing a certain number of employees at the facility, within western New York and within the State of New York.
- spend or incur approximately $5.0 billion in combined capital, operational expenses and other costs in the State of New York over the 10 years following the achievement of full production.
What is full production at this new factory?
According to the same filing, Tesla expects “approximately 1 gigawatt annually beginning in 2019.” In the past, SolarCity has referred to the factory as having a 1 GW capacity with potential for up to 5 GW, but it looks like they are sticking to 1 GW for now.
The production of solar cells to make modules and tiles (for Tesla’s solar roof) will use technologies developed by Tesla (Glass), SolarCity’s Zep and Silevo (modules and connections), and Panasonic for the cells and the manufacturing.
Tesla explains the agreement in the filing:
“In December 2016, we entered into a Production Pricing Agreement: Phases 1-3 (the Phase 1-3 Agreement) with Panasonic Corporation, Panasonic Corporation of North America and Sanyo Electronic Co., Ltd (collectively, Panasonic). This agreement provides that Panasonic will manufacture custom photovoltaic (PV) cells and modules for us, primarily at Gigafactory 2, and that we will purchase certain amounts of PV cells and modules from Panasonic during the 10-year term, with the intent to produce PV cells and modules totaling approximately 1 gigawatt annually beginning in 2019.”
Panasonic said that it plans to make a $250 million investment in the manufacturing effort.
This deal is somewhat similar to the deal Tesla and Panasonic have at the Gigafactory 1 where they collaborated on the development of a new battery cell, which Panasonic ultimately ends up being the manufacturer under a long-term agreement for Tesla to purchase the output.
In the case of Gigafactory 1, Tesla uses the cells to make its battery packs for cars, Powerwalls, and Powerpacks, while at Gigafactory 2, Tesla will use the cells to make solar roof tiles and modules.
Tesla still expects to start production of the solar roof at Gigafactory 2 in “summer 2017”. The expectations for the product are high since Musk said that Tesla’s solar roof will cost less than a regular roof – even before energy production.
Who wouldn’t want to get a lifetime supply of free electricity? Well, that can be realized only if you install a dependable and durable solar power system. Solar power is free but only after the installation of the power system. Conventional electricity comes from the burning of fossil fuels that in turn contribute to global warming. The effects of global warming are quite evident nowadays. Many people are now interested in saving the environment to prevent the devastating effects of pollution. One way to decrease pollution and environmental concerns is through the use of solar power.
Solar power can be used in different ways especially in households. You can use it for lighting, for cooking, for heating the house, and many others. Utility bills are very expensive and you can cut it down by installing a solar power system. The system has solar panels that collect sunlight and converts the energy of the sun into electricity. You can readily use the electricity or it can be stored in the batteries.
The sun’s raw energy can’t be used to power homes and it needs to be converted first through the inverter. If you have a solar powered house, you can make use of renewable and clean electricity. Even if you can’t cut off your traditional electrical supply, you will be able to reduce the consumption thereby helping the environment. Electricity is generated by burning fossil fuels that contribute to pollution and global warming. The supply of fossil fuels is also decreasing and the world might face electricity shortage soon if they don’t conserve energy. It would be best to start using solar power now.
Through the efforts of SEPA (Solar Electric Power Association), the public is made aware of the many benefits of solar powered homes. This is the best time to make substantial efforts to save the environment. Solar power can’t possibly replace conventional energy sources today but who knows. If the technological advancements can help in the enhancement of solar power systems, perhaps in the near future the whole world can go green.
Pollution is widespread and it poses a great threat to the world. By reducing traditional electricity consumption, you can also lessen pollution. Solar power can provide clean, renewable, and free electricity. It doesn’t produce harmful emissions. You can enjoy free electricity as long as the system is working properly and as long as the sun rises.
The solar power systems are not that expensive these days. In fact, you already get a solar power kit for as low as $200. Still, the large solar panels are expensive. The federal government in the US offers incentives, loans, grants, rebates, and other financial options to help homeowners in installing a power system. Take advantage of these financial options so that you can start helping the environment.
Solar power systems can serve your home for about twenty years when properly maintained. It’s like an entire lifetime if you start now. If every home around the world patronizes solar power, global warming can be greatly reduced and Mother Nature can heal herself. Try to learn more about solar power and if you can afford to install a system at home or in the office, don’t hesitate because you’re doing the world a favor and you also get a lot of benefits.
Wind turbine Electricity: A New and Environment-friendly Alternative
When individuals think about discovering green sources of energy, they commonly resort to solar energy. While it is true that solar power is a clean option to making use of standard energies such as gas and energy, it is not the only environment-friendly choice available. Wind wind turbine energy is approach of producing electricity that is not brand-new theoretically considering that there are many that understand how to create electrical energy utilizing wind. However, wind generator energy is still a new type of powering an entire home.
Wind Turbines vs Solar Panels
Both solar powers and wind generators create power that can be used as an option to fossil fuels. Considering that solar power and power produced making use of wind generators is tidy and conveniently sustainable they could both be used by individuals who are trying to find methods to decrease their carbon foot prints by reducing the amount of fumes that are released into the setting. It is believed that if the earth turned away from standard kinds of power such as oil and coal the greenhouse impacted (the warming of the Earth’s climate) might possibly be minimized.
The problem is, folks which have an interest in tidy power do not recognize whether they must decide on solar energy or wind generators. When making your choice think of your climate. If your residence does not receive direct exposure to the sunlight often, you could intend to consider wind turbines. Bear in mind, the electricity stored by solar panels is diminished as electric home appliances are made use of, so if you are unable to constantly renew your solar power wind generators are the best, green, different.
Conserving Cash With Wind Turbines
The expense of setting up a home wind turbine might be good enough to prevent lots of home owners. Because using wind turbines to sustain homes is still new, manufacturers and installation experts have actually not had adequate time to develop less expensive means to develop and install wind generators. Having a wind generator installed for personal use can cost from many hundred to a number of many thousand bucks.
The final cost is figured out by the amount of electricity you and your family members will be using considering that this will certainly influence the amount of power your wind turbine will certainly have to create. Nonetheless, it is necessary to keep in mind that after the wind turbine is installed you will have an infinite amount of electricity at your disposal. When a wind generator is working you will certainly not have to bother with paying month-to-month electrical energy expenses which will save you thousands of dollars each year. In fact, your wind generator ought to manage to pay for itself after only a year or more.
Going green is an option that will assist you and the setting. By switching to wind turbine sustained power you and your family members will have the ability to considerably minimize your month-to-month electrical energy costs. Likewise, switching to wind generated energy will help the environment by lowering the amount of carbon released into the atmosphere. You might likewise be able to further aid the setting by starting a conservation fad in your community.