Tesla Pushes Energy Storage in Resolution of SolarCity Lawsuit

Tesla and Arizona utility Salt River Project (SRP) last week reached an agreement that resolves a lawsuit filed by SolarCity before its purchase by Tesla.

SolarCity claimed in 2015 that SRP’s new rates were designed to hinder solar deployment.

SRP earlier this month signed a memorandum of understanding on the terms of the agreement.  The U.S. Supreme Court had agreed to hear arguments for the case.

SRP said it has agreed to purchase a 25-MW/100-MWh battery energy storage system from Tesla for installation at the Agua Fria Generating Station in Glendale, Ariz.  The utility expects the battery to be placed in service in 2021.  In addition, SRP will initiate a Customer Storage Incentive Program, which will provide incentives to SRP’s customers towards the purchase of qualifying home energy storage systems.

"This program will provide an excellent opportunity to conduct research that will help us learn more about how battery storage can enhance residential use of rooftop solar technology," SRP General Manager and CEO Mark Bonsall said in a statement.  "The relationship with Tesla gives SRP the ability to work with and learn from a company whose experience and advancements with battery storage is well known."

The program will provide an incentive of up to $1,800 ($150 per DC-kWh) for residential customers who purchase and install qualifying battery storage systems — including Tesla Powerwall battery products.

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