Tesla says its new Megablock can cut costs for renewable energy storage.

Tesla has unveiled a new utility-scale battery configuration called "Megablock" that aims to significantly reduce construction costs and installation time for renewable energy storage. The Megablock is pre-engineered and designed for faster factory-based assembly, which Tesla claims can result in up to 23% faster installation and 40% lower construction costs. The Megablock incorporates the latest iteration of Tesla's Megapack battery storage system, the Megapack 3. The new Megapack features a simplified thermal bay with 78% fewer connections, reducing potential failure points, and utilizes a "Tesla Model Y heat pump on steroids" for improved efficiency. Tesla plans to manufacture the Megapack 3 in Houston starting late next year, though the company still relies on BYD and CATL for battery cell supply. The Megablock is positioned as a plug-and-play platform to help utilities quickly meet rising electricity demands from data centers, electrified homes and vehicles, and manufacturing, supporting the integration of renewable energy sources into the grid.