Tesla to equip Shanghai Megafactory with 6 MW solar power and 8 MWh energy storage system through Megapack project.
The Shanghai Megafactory, Tesla's first energy storage manufacturing site outside the U.S., has successfully completed its solar-plus-storage project. The large-scale industrial microgrid, developed by Lingang Green Innovation Co., began construction on May 23, 2024, and was officially commissioned on December 26, 2024, taking just seven months to complete.
With a total investment of around 4 billion yuan (approximately $558.58 million), the project is situated in the Lin-gang Special Area of the Shanghai Pilot Free Trade Zone. Upon completion, the first phase is expected to come into operation within 2025, providing about 300 megawatt-hours of energy storage capacity.
Tesla's Megapack energy-storage batteries are used for this grid-scale storage, aiming to integrate the facility with China's power grid. Once operational, the project will participate in electricity spot trading to help balance peak and off-peak power demand and improve overall grid stability in Shanghai.
The solar-plus-storage project is a significant milestone in Shanghai's push toward distributed renewable energy. The Shanghai Megafactory, which started operations in early 2025, ahead of schedule, is also equipped with a distributed photovoltaic (PV) and energy storage system. This setup allows the facility to consume 100% of its solar-generated electricity on-site.
The project is expected to help Shanghai manage winter and summer electricity demand peaks more efficiently and at lower costs, reducing the city's annual extra expenditure on electricity supply stability, which stands at 20 billion yuan.
Interestingly, Tesla has already installed a similar setup at Giga Texas, where a massive rooftop solar array spells out the word 'TESLA' and is complimented by a Megapack installation with 131MW of power capacity and 262 MWh of power storage capacity.
The Shanghai Megafactory's solar array will be a 6-megawatt (MW) rooftop solar array, and the energy storage system will be an 8-megawatt-hour (MWh) Tesla Megapack energy storage system. The Shanghai Megafactory has an annual capacity of 10,000 Megapacks, enabling it to store around 40 gigawatt-hours (GWh) of energy.
This project marks a significant step for Tesla, expanding beyond vehicle manufacturing to large-scale energy infrastructure in China. The Shanghai Megafactory's solar-plus-storage project is the first large-scale industrial microgrid in the Lingang New Area, further strengthening Tesla's presence and commitment to China's renewable energy sector.
- The integration of Tesla's Megapack energy-storage batteries in the Shanghai Megafactory's solar-plus-storage project aims to establish a connection with China's power grid, following Tesla's expansion into large-scale energy infrastructure in the country.
- Upon its expected operation in 2025, the Shanghai Megafactory's energy storage system, an 8-megawatt-hour (MWh) Tesla Megapack system, will empower the facility to consume 100% of its solar-generated electricity on-site, showcasing advancements in environmental-science and technology.
- By participating in electricity spot trading, the Shanghai Megafactory's solar-plus-storage project will contribute to balancing peak and off-peak power demand, helping to improve Shanghai's overall grid stability, and potentially reducing annual extra expenditure on electricity supply stability by approximately 20 billion yuan, a significant benefit to the city's finance sector.
