Victoria’s comprehensive home energy package of approximately AU $ 800 million could create a potential market for Tesla’s HVAC system in Australia. Elon Musk has shown particular interest in developing an integrated HVAC home system for Tesla and mentioned the product when it first appeared on the Joe Rogan Experience podcast in 2018. Victoria may have just made an investment that could represent a potential market for the Tesla Integrated HVAC System.
Recently, Energy Secretary Lily D’Ambrosio announced that the Andrews Ministry will be investing around AU $ 797 million in a household energy saving package. The initiative aims to encourage the shift to smarter, more energy-efficient devices and integrated home systems in households, rentals and businesses in Victoria.
Some parts of the initiative could make Victoria a good market for Tesla’s integrated HVAC system in the future. The ministry plans to invest AU $ 335 million to help low-income workers replace old wood and electric or gas heaters in their homes, according to Renew Economy. The small renovation could save over 250,000 households AU $ 300 to 900 in electricity costs. A further AU $ 112 million will be invested in sealing windows / doors and in modernizing heating / cooling systems and hot water systems in 35,000 social housing.
We will one day make a super efficient home air conditioner with Hepa filters
– Elon Musk (@elonmusk) September 11, 2020
Drew Baglino, senior vice president of powertrain and power engineering and technology at Tesla, said in its second quarter results that the company had learned to build a tightly integrated system thanks to the Model Y and Model 3 heat pumps. He said the system was able to move heat “really anywhere” and that it could be used for heating and cooling needs in a home.
Elon Musk took up the subject. “Yes. Absolutely. I think like the heat – for the heat pump in the car it is very important to be able to use the batteries as both thermal and electrical energy storage. The same could of course be applied to a house with the water heater and the back of the backpack itself be applied.
“I think there is potential for an integrated home system that does power generation / storage, heating / cooling, air filtration and water treatment in a really tight package. We don’t actually have a prototype or anything, but I think conceptually this is something that would probably be good, ”he said.
2/3: Today’s announcement includes 42,000 discounts for solar roofs over the next two years, plus 15,000 new discounts for small businesses and 17,500 battery discounts for the next three years.
– Clean Energy Council (@cleannrgcouncil) November 17, 2020
More options for Tesla in Victoria
As Musk mentioned during the Q2 earnings call, Tesla does not yet have a prototype of its potential home integrated HVAC system. So it may be a while before Tesla can take advantage of the market that Victoria might offer for that particular product.
However, there are other ways Tesla could benefit from Victoria’s nearly AU $ 800 million home energy initiative.
In addition to the millions spent on improving integrated home systems, the Victorian government’s investment could encourage more households and small businesses to install solar panels and use home batteries like Tesla’s Powerwall 2.
Part of the initiative is to invest $ 191 million in a solar homes program over the next two years. 42,000 discounts are offered to help over 140,000 households install solar panels on their roofs at no upfront cost. There are also 15,000 discounts available for small businesses interested in installing solar panels.
Tesla’s solar panels may fit well with Victoria’s Solar Homes program. The company’s Solar Roof V3 product has not yet been released in Australia, but it could also be a great option for homeowners if it’s covered by the program’s discounts.
Tesla Energy has its sights set on another market ready for battery storage interruption
Tesla’s Powerwall sales could also improve as part of Victoria’s energy initiative. The local government will approve 17,500 discounts on home battery installation over the next three years. Home battery discounts used to be limited to certain zip codes, but the initiative appears to be opening up the discounts to all corners of Victoria.
With that in mind, powerwalls could create pockets of virtual power plants in the state. Virtual power plants in Victoria would complement Neoen and Tesla’s massive 300 MW / 450 MWh energy storage project in the state, which will be operational through summer 2021-2022.