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He just keeps chipping away

Tesla Motors Inc. is signing up big customers like Wal-Mart and Cargill, accelerating efforts to become a leader in energy storage -- a new market that’s poised to boost sales and profit at the electric vehicle pioneer.

Next week, Tesla will make a deeper push beyond the car business when it unveils batteries for homes and utilities.

A review of California’s Self Generation Incentive Program, or SGIP, shows Tesla has ambitions to sell batteries for a range of commercial uses, from powering its factories to reducing electric bills at schools and wineries. Tesla is on track to reap as much as $65 million in SGIP rebates, which are designed to encourage investment in alternative energy.

“Tesla has been able to install more than 100 projects, really without anyone noticing,” said Andrea James, an analyst with Dougherty & Co. She said Tesla’s energy storage business could be worth as much as $70 to Tesla’s stock. The shares rose 4.8 percent Wednesday to close at $219.44, the biggest daily gain in more than two weeks.

As a builder of electric cars, the company has a vested interest in making the electric grid as clean as possible. Customers typically buy the batteries to store energy from solar panels, using them when electricity from the grid is most expensive or the sun isn’t shining. With Tesla’s gigafactory for battery production under construction in Nevada, storage products could serve as a secondary revenue stream for the company, which is looking to diversify its product lineup.

As part of a pilot program with sister company SolarCity, Tesla has installed batteries at about 300 California homes equipped with solar panels. Wal-Mart Stores Inc., which has a relationship with SolarCity, has Tesla batteries installed at 11 California stores; Cargill Inc. plans a one-megawatt system for its animal-processing plant in Fresno.

Home Battery
The SGIP database provides a snapshot of Tesla’s activities in its home state and is by no means a complete picture of the company’s storage ambitions.

But Chief Executive Officer Elon Musk has been dropping hints for weeks, and yesterday the company told investors and analysts in an e-mail that Tesla will announce the home battery and a “very large” utility-scale battery on April 30. In the e-mail, Jeffrey Evanson, Tesla’s chief of investor relations, said the company “will explain the advantages of our solutions and why past battery options were not compelling.”

Tesla spokeswoman Khobi Brooklyn said the company would share more information next week.

Thanks to state incentives and advances in battery chemistry, storage is a hot industry. By 2019, total U.S. sales will reach $1.5 billion, about 11 times as much as in 2014, according to a March report from GTM Research.

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