For sure, Tesla’s new systems will be used for backup power. They’ll also be used to lower customer bills through arbitrage against rates (such as demand charges) and demand response programs, as many other energy storage companies currently do. But without even knowing additional detail about the product itself, I can safely say that Tesla’s new product will able to do much, much more for multiple stakeholder groups including customers, utilities, and independent system operators (ISOs) / regional transmission organizations (RTOs).
In fact, when products like Tesla’s are installed behind the customer meter and networked with hundreds or thousands of other similar systems, storage is capable of providing about a dozen services to the electricity system at large. Furthermore, in many cases, it costs less for aggregated behind-the-meter storage to provide these services than what we pay for them to be delivered now in other ways.
The services energy storage can deliver when installed behind the meter like Tesla’s planned products fall into three categories: 1) services for customers, 2) services for ISOs / RTOs, and 3) services for utilities.