Solar & Storage The best way to avoid blackouts is to reduce your reliance on the grid. Tesla is a one-stop shop for taking our customers off- grid by covering a large variety of their needs. In 2020, Tesla sold 3 GWh worth of energy storage products, roughly 25% of the 12 GWh global market. In order to switch global energy usage to renewable sources, we estimate that global annual battery storage production will need to increase to ~10,000 GWh. Residential customers: Solar Roof, solar panels and Powerwall Anyone can dramatically reduce their carbon footprint by installing a Tesla Solar Roof or solar panels with Powerwall. In theory, all U.S. domestic electricity needs, as well as vehicle transportation needs, could be met by sunlight alone. Naturally, installation of such a system needs to make financial sense for the customer. In Massachusetts, for example, we estimate that an average solar and storage system pays for itself with energy cost savings within approximately 12 years. As the cost of these products continues to decline, more customers will be willing to switch to solar and storage purely due to lower overall cost. Commercial scale customers: Megapack and renewables The beauty of selling commercial storage systems such as Megapack is that purchasing such a product is almost purely a mathematical decision for our commercial customers. If installing Megapack makes economic sense, there is no reason not to install one. A single Megapack has on average 3,000 kWh worth of battery storage capacity, and given its scalability, enables projects over 1,000,000 kWh. Tesla Energy continues to be dependent on global cell supply. In 2020, the global demand for energy storage products continued to be far above available global supply. 3,0 2,5 2,0 1,5 1,0 0,5 0,0 2015 2016 2017 2018 2019 2020 Tesla Energy Storage Deployment (GWh) Residential Solution: Solar and Storage Commercial Solution: Solar and Storage 43