The world pays attention when Elon Musk talks about energy, particularly when his cautions sound like they belong in a science fiction thriller. Musk, who has long argued that solar energy is the way for humanity to survive, is once again in the news. This time, though, it’s for a billion-dollar dispute that has generated discussions throughout the energy industry rather than a breakthrough.
Since Musk initially advocated for the use of solar energy, it has advanced significantly. What was formerly considered an alternative energy source is now a crucial component of the global energy strategy. In many areas, solar photovoltaic (PV) technology is now the least expensive way to generate electricity, according to the International Energy Agency (IEA). Global solar capacity increased by over 400 gigawatts in 2023 alone, making up more than 60% of all new renewable power installations globally. With improvements in battery storage and installation costs that are almost 90% lower than in 2010, solar energy is no longer a sci-fi idea but rather a scalable, tried-and-true way to combat climate change.
Tesla’s 2016 acquisition of SolarCity, which Musk presented as essential to hastening the shift to sustainable energy, is at the centre of the dispute. However, because SolarCity was deeply in debt, shareholders argue that the deal was a bailout. Critics contend that Musk, who served as the chairman of both businesses, pressured Tesla into the agreement in order to protect his own investment and the family members of SolarCity’s executives.
Since then, Musk has emphasised the significance of domestic energy independence. He underlined the importance of solar panels and battery storage, such as the Tesla Powerwall, for homes in the event of a grid outage during Tesla’s Q4 and full-year 2024 earnings call. Musk’s focus on solar energy’s capacity to power homes during outages highlights his belief in the technology’s role in ensuring resilience in the face of climate disruptions, notwithstanding Tesla’s recent revenue and earnings misses.