Tesla secures long‑term power purchase for 90% of Arizona solar‑storage project output
Tesla has signed a long‑term agreement to buy about 90% of the electricity generated by Project Sterling, a 450 MW solar farm with 360 MW of battery storage being built by ContourGlobal in the Arizona desert. The facility, covering more than 2,000 acres, is slated to begin operations in 2028 and is expected to produce over 1.1 TWh of clean power each year. Tesla’s contract covers roughly 1 TWh annually, along with the associated renewable energy certificates.
Why it matters
The deal guarantees Tesla a sizable, low‑cost renewable energy source for its operations, potentially lowering its electricity expenses and supporting its sustainability goals. Investors will see a fixed supply of clean power that may improve Tesla’s operating margins and reduce exposure to volatile grid prices.
Key facts
- 1Project Sterling will have a solar capacity of 509 MW DC and 450 MW AC. electrek.co
- 2The battery system will deliver up to 360 MW and store about 1.4 GWh of electricity. ua.news
- 3Once operational, the complex is expected to generate more than 1.1 TWh of electricity annually. electrek.co
- 4Tesla’s power purchase agreement covers about 1 TWh per year, roughly 90% of the plant’s output. ua.news
- 5Construction began with a groundbreaking ceremony on 6 October 2026 and the plant is slated to come online in 2028. electrek.co
- 6The project will occupy more than 2,000 acres in the Mojave Desert and will employ about 400 workers through 2028. ua.news
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.