The Tesla Big Battery: A Battery Monetisation Success Story

When the Hornsdale Power Reserve (HPR) – better known as the Tesla Big Battery – was switched on in South Australia in 2017, it was a game-changer. Built by Tesla and Neoen, it proved that large-scale battery storage cou...

When the Hornsdale Power Reserve (HPR) – better known as the Tesla Big Battery – was switched on in South Australia in 2017, it was a game-changer. Built by Tesla and Neoen, it proved that large-scale battery storage could not only stabilise the grid but also generate revenue, making a strong financial case for battery monetisation. 

Now, as battery technology becomes more accessible, businesses can take advantage of similar opportunities. Our new Smart Stack solution brings this concept to the commercial sector – a large-scale battery (minimum 250kW) combined with smart software to monetise energy storage. 

The Financial Success of the Tesla Big Battery 

 The Hornsdale Power Reserve, originally 100 MW / 129 MWh and later expanded to 150 MW / 193.5 MWh, has delivered significant financial returns. 

Key Financial Insights: 

  • Construction Cost: AUD 90 million 
  • Annual Operating Cost: AUD 6.6 million 
  • Annual Economic Activity Generated: AUD 24.6 million 
  • First-Year FCAS Revenue: AUD 13 million 
  • Grid Stabilisation Savings (First 6 Months): AUD 33 million 
  • Reduction in FCAS Costs in SA: 57% 

From an investment standpoint, these numbers are compelling. The ability to provide Frequency Control Ancillary Services (FCAS) has been a major revenue driver, and the battery's rapid response time (measured in milliseconds) has made it an invaluable asset to the grid. 

 

Introducing Smart Stack: Battery Monetisation for Business 

 Large-scale batteries are no longer just for governments or massive utilities. The same financial principles that made the Tesla Big Battery a success can now be applied to commercial and industrial businesses. With Smart Stack, companies can: 

Reduce energy costs by storing cheap electricity and using it during peak demand.
Earn revenue by participating in energy markets like FCAS and demand response.
Improve energy resilience by ensuring backup power during grid instability.  
Make the most of renewable energy by integrating battery storage seamlessly with solar power. 

Smart Stack is a fully managed solution that combines a large-scale battery (starting at 250kW) with advanced software to optimise energy use and trading. This energy storage revenue solution for businesses allows companies to take control of their energy strategy while unlocking new revenue streams—just like the Tesla Big Battery has done on a larger scale. 

 

Battery Monetisation Is Here 

The Tesla Big Battery demonstrated that battery storage isn’t just a cost—it’s an opportunity. With Smart Stack, businesses can harness the same approach on a smaller scale to generate revenue and future-proof their energy strategy. 

Learn more about Smart Stack and how your business can benefit from energy storage today. 

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Written by
Lauren Hamilton

Head of Marketing

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