Plenty of Competitors for Tesla (TSLA) in Home Energy Storage Market

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tesla, elon musk, battery, rooftop solar

With so much focus on Elon Musk and the big announcement coming out of Tesla (TSLA) on April 30, it would be easy to assume that the entire industry for home energy storage is encapsulated in that one company. One could be forgiven for assuming that, if you’re planning on getting a high-capacity battery to store energy from rooftop solar panels, Tesla would be the only game in town. In fact, Tesla is preparing to dip its toe into a pool that is a very young, growing segment, but one that definitely already has some major players in place.

In fact, in anticipation of Tesla’s big announcement, at least two other major competitors have made their own announcements regarding similar packages that should go head to head with whatever Tesla trots out.

LG Chem Throws its Hat in the Ring on Earth Day

Take, for instance, the announcement from LG Chem (LGCEY) on Earth Day that it was partnering with microgrid technology provider Eguana Technologies (EGT:CA)(STGYF) to provide their own entry into the market. Using Eguana’s industry-leading inverters, LG Chem is offering its own AC-battery as part of a turn-key home energy storage system that looks to be more than competitive.

The 6.4 kWh battery would likely also have applications for commercial and industrial customers as well as residential.

Sungevity and Sonnenbatterie Announce a Partnership

Just one day prior to the Tesla announcement, another two companies made their own play to steal Elon Musk’s thunder.

Sungevity, the largest private installer of residential solar in the country, and Sonnenbatterie, the leading supplier of home energy storage systems in Germany, announced a partnership that would bring their own entry into the North American market.

Paired with Eguana’s technology, the two companies can offer a complete energy system to the American consumer, allowing them to install solar panels on their house that will charge the battery during the day for use at night. What's more, the proposed system should retail for under $10,000, well under the $13,000 many are anticipating Tesla's system will cost.

Eguana the Smart Play for the Entire Industry?

Clearly, anyone assuming that Tesla alone is going to own the market for home battery systems in the United States is probably mistaken, no matter how much noise Elon Musk makes.

However, for the investor, the question becomes: "Which horse do I pick?" For those convinced that home energy systems pairing high-capacity batteries and rooftop solar panels are the wave of the future, as many industry-watchers are, which company one decides buy into can make all the difference between riding the wave and wiping out hard.

However, Eguana Technologies may represent a great way to sidestep having to make that choice entirely. Providing the necessary grid technology and inverters that allow systems like these to work, Eguana acts as an essential piece to the systems provided by many of these different companies. They’re already a leading provider in Europe, and their partnerships with Sonnenbatterie and LG Chem means their technology is likely going to be offered as a built-in piece of many (if not most) of the systems installed in the United States.

If this industry’s growth is on par with what’s expected, Eguana Technologies could be an intriguing way for investors to play that growth without having to back one particular battery provider.

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
TSLA Tesla Motors Inc. 181.47 -0.41 -0.23 4,042,324

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