Global Equities Research's Trip Chowdhry previewed Tesla Motors Inc TSLA's Thursday announcement in The Guardian, noting that he has spoken with a number of Tesla's customers last year. According to Chowdhry, the system will offer 10 and 15 kwh configurations and cost around $13,000.
At Pacific Gas & Electric, customers can get a 50 percent rebate for using the system or finance it by paying $1,500 per unit and $15 per month for 10 years, at which point the battery is returned to SolarCity Corp SCTY. The units are made of lithium ion cells, which will be built in the $5 billion Gigafactory. The Gigafactory is set to open in 2017.
Related Link: What 2 Street Firms Think About Tesla's Big Announcement
The battery systems can reportedly be powered during times of low electricity prices – typically during the day – and used when prices and demand are higher.
Chowdhry forecasted the corporate market for Tesla's batteries is huge, noting that Google Inc GOOG and Apple Inc. AAPL installed Tesla's backup systems at their corporate campuses. According to a Bloomberg report last week, Wal-Mart Stores, Inc. WMT is also considering using the battery system.
Shares of Tesla recently traded at $233.91, up 7 percent.
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