Tesla is making waves in the world of grid-scale energy storage with the upcoming launch of a $500 million battery energy storage system (BESS) in California. This massive project, located in Kern County, combines solar generation with Tesla’s Megapack batteries to create one of the largest solar-plus-storage installations in the United States.
The site boasts an impressive 2 GWh of energy storage co-located with 500 MWac of solar capacity. According to Tesla, this setup will be able to provide clean energy equivalent to the annual usage of approximately 467,000 homes, significantly reducing carbon emissions (over 1 million metric tons of CO₂ per year) and supporting grid stability. The project utilizes a total of 559 Megapacks to deliver its full 2 GWh of storage capacity.
This installation underscores the increasing importance of utility-grade batteries as grids transition to renewable energy sources. By storing excess solar energy during the day and dispatching it during peak demand periods, the Megapack-backed system helps smooth out intermittency while providing reliable, on-demand power. Tesla emphasizes that projects like this demonstrate how large-scale clean energy can be reliable, affordable, and sustainable, in line with California’s goal of achieving 100% clean electricity by 2045.
The Megapack is Tesla’s flagship utility-grade energy storage solution, designed for grid-scale applications. Each Megapack can store vast amounts of energy and dispatch it when needed, helping utilities stabilize demand and integrate renewable energy sources like solar and wind into the grid. The technology has become a staple for large battery projects worldwide, from North America to Australia and beyond.
Tesla’s energy storage business has been thriving in recent years, with the company securing massive Megapack orders and deploying them in various projects globally. In California alone, Tesla Megapacks are set to power multiple battery storage projects, including a $600 million installation near San Diego.
Looking ahead, Tesla is already innovating with the introduction of Megapack 3, its next-generation utility-scale storage product. Megapack 3 can store 5 MWh of usable AC energy per unit and features a redesigned architecture aimed at improving installation speed, efficiency, and long-term reliability. The demand for grid-scale batteries is only expected to grow, as demonstrated by projects like the one in Kern County.
With hundreds of Megapacks supporting one of the largest solar-plus-storage sites in the United States, Tesla’s latest Megapack deployment highlights the crucial role that large-scale energy storage plays in modern power grids, and the significant contribution that Tesla is making to this transition.