New approach may polarise storage market

Simon Hackett, the CEO of energy storage specialist Redflow, says that the launch of Telsa’s Powerwall 2 is welcome but runs the risk of polarising the market.

Writing in a blog on his website, Hackett likens the inclusion of a built-in AC inverter in Tesla’s new offering to the Apple vertical integration business model and says it “aims to establish Tesla as a single entry point for energy generation and storage systems in the home environment”.

He says that the vertical stance is in direct contrast to “the horizonal orientation of the rest of the industry — a commercial ecosystem that offers choice at all layers of the energy storage system, using standardised interfaces to allow mix-and-match assembly of devices in the solution stack”.

He further suggests that the approach will turn former allies into direct competitors as inverter/charger vendors will be cut out of the the mix and that experienced installers will encounter less-accomplished installers offering entry-level solutions in complex situations where a greater understanding of energy management problems is required.

“It may also fail to accommodate specialised situations, such as two-phase or three-phase installations, installations that require flexible interconnection, those that require sophisticated energy flow management or those that may require the integration of multiple DC or AC energy sources,” he said.

Hackett believes that these factors have the potential to mirror the long-term Apple vs Android battle, but also points out that there is plenty of room for alternatives in the rapidly expanding energy storage market. 

“Tesla’s presence in this market will drive increased interest in energy generation, storage and use. It will help to deliver further momentum to drive demand and adoption of energy storage systems in general.

“It will also act as a catalyst for other energy generation and storage systems — using a variety of technologies and deployed a variety of physical scales — to each find their own appropriate place in the sun,” he said.