Tesla has signed a power‑purchase agreement covering 90% of output from its new 450‑megawatt solar plant and 1.4‑gigawatt‑hour battery system in the Mojave Desert, aiming to deliver up to 16 continuous hours of renewable electricity.

Tesla has secured a power‑purchase agreement for 90% of the output from its newly announced 450‑MW solar farm paired with a 1.4‑GWh battery storage system in Arizona’s Mojave Desert, positioning the project to supply up to 16 continuous hours of clean electricity.

Project overview

The solar‑plus‑storage facility, slated for completion in 2028, will combine utility‑scale photovoltaic panels with a lithium‑ion battery that can discharge for a full day‑and‑a‑half without sunlight. Together, the assets are expected to generate roughly 1.2 TWh of electricity annually, enough to power hundreds of thousands of homes.

Tesla’s involvement extends beyond the hardware; the company will also operate the energy management software that optimizes charge‑discharge cycles, ensuring the battery can deliver a steady 16‑hour supply during peak demand periods or when solar generation dips.

Why 90% of the output matters

Securing a 90% power‑purchase agreement (PPA) demonstrates strong commercial confidence in the project’s reliability and price competitiveness. The remaining 10% will be sold on the spot market, providing flexibility for Tesla to balance grid needs and capture additional revenue.

Economic and environmental impact

The Arizona plant is projected to create over 500 construction jobs and 50 permanent positions for operations and maintenance. By displacing fossil‑fuel generation, the facility could avoid roughly 1 million metric tons of CO₂ emissions each year.

  • 450 MW solar capacity
  • 1.4 GWh battery storage
  • Up to 16 hours of continuous renewable supply
  • 90% of output covered by a long‑term PPA

Tesla’s strategy aligns with its broader goal of integrating large‑scale storage with renewable generation, a move that analysts say could accelerate the transition to a carbon‑free grid in the Southwest.

“This project showcases how solar and storage can work together to provide reliable, round‑the‑clock clean power,” said a Tesla spokesperson.

The agreement was signed with Arizona Public Service, the state’s largest utility, which will incorporate the power into its portfolio to meet renewable‑energy mandates and reduce reliance on natural‑gas peaker plants.

Electrek coverage of Tesla’s Arizona solar‑plus‑storage project