tesla powerwall

Running head: THE SOCIAL IMPLICATIONS OF TESLA POWERWALL

The Social Implications of Tesla Powerwall

Communication 3554: Social Implications of Technology

Mihir Shah

The Ohio State University

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Introduction

On April 30, 2015, Elon Musk introduced the world to the Tesla Powerwall, a

revolutionary solar battery, which can run the electric grid system with renewable energy instead

of fossil fuels (Clemente, 2015). The battery stores and smoothens solar energy generation

during the day so that it can power electricity at night. While existing batteries in today’s market

are heavily flawed, unreliable, and unaesthetic, the innovative solar batteries from Tesla are a

new solution that are aesthetically designed, reliable, scalable, and efficient (Randall, 2015).

Tesla’s sustainable energy batteries are designed to reduce our consumption on fossil fuels,

revolutionize the way households and businesses consume power, and impact the way people

collaborate and design their products through the philosophy of open source patenting (Gipe,

2013). In this way, the social implications of the Powerwall are likely to impact people’s

perception of the war on oil, target to average consumers and households, influence people’s

social identity through social categorization, and create new opportunities in the market.

Background

Tesla is an American automotive and energy storage company that designs,

manufactures, and distributes electric vehicles, including its components and battery products

(Tesla Energy, 2015). The company introduced Tesla Energy on May 2015 (Tesla Energy,

2015). Tesla’s introduction of the Tesla Powerwall strengthened their efforts in moving away

from conventional fossil fuels towards sustainable energy (Tesla Energy, 2015). The batteries

allow households, businesses, and utilities to store sustainable and renewable energy to cope up

with power demand, store backup power and increase the strength of the grid. With that, Tesla is

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working with utilities and renewable power partners globally to implement storage on the grid to

improve its overall resilience and cleanliness (Tesla Energy, 2015).

War on Oil

If the technology to efficiently harness solar energy already existed today, renewable

sources would have prevented the loss in trillions of dollars, many lives, and adverse social

impact on friends and families.

Many people in the USA have family, friends, and loved ones affected by war and it

impacts their lives. The social implications of war spread a broad variety of mental and physical

illnesses that affect work, family, and social functioning that eventually lead to substance abuse,

homelessness and suicide (Tanielian & Jaycox, 2008). For instance, 18.5 percent of service

members who returned from Afghanistan and Iraq have post-traumatic stress disorder or

depression, and 19.5 percent report experiencing traumatic brain injury during deployment

(Tanielian & Jaycox, 2008). This impairs their future health, work productivity, and family and

social relationship (Tanielian & Jaycox, 2008).

The war in Iraq was motivated by a U.S. drive to control or even influence the Iraqi oil

production since Iraq holds the third largest reserves of the world’s conventional petroleum

(Bonds, 2013). It is argued that the U.S. decision makers were strongly interested in the Iraqi oil

even before the war that killed 4,500 U.S. soldiers and an estimated toll on 110,000 to over a

million Iraqi civilian deaths (Bonds, 2013). The United States spent $1.71 trillion dollars for the

war on oil in Iraq through the fiscal year of 2013 (Crawford, 2013). For the amount of money

spent on the Iraq war, the U.S could be generating 40%-60% of its electricity with renewable

solar energy (Gipe, 2013). The costs are projected to grow to over $6 trillion in the next 40 years

if the war on oil continues (Lazarus, 2013). Assuming that the war continues for the next 40

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years, it is reasonable to assume that it could fund the U.S. a 100% renewable energy power

system (WashingtonsBlog, 2013).

Electricity Consumption

With increased electricity consumption every year, the costs for non-renewables will be

projected to rise significantly over a long-term period (Lambert, Heddeghem, Vereecken,

Lannoo, Colle, & Pickavet, 2012). This will affect regular consumers because they will no longer

be able to comfortably afford fossil fuels and only companies and the wealthy would have the

funds to access non-renewables. Social inequity would become more pronounced due to lack of

energy access, since energy powers information (e.g., the Internet/computer, media/television,

and phone. People’s behaviors are likely to be influenced by the increase in price, as they would

have to be more conservative in energy use. This could also change purchasing behavior

significantly as the average consumer would now be compelled to purchase products that require

very little to no fossil fuels. In addition, they would be forced to adopt fossil fuel alternatives,

such as solar energy, if they wish to maintain the comforts of their technology, such as their

Internet, laptops, phones, microwaves, dishwashers, and the many other ubiquitous technology

around that are reliant on energy. Tesla attempts to address this future problem by enabling

people to power their homes and devices with the Powerwall. In a sense, people’s purchasing

behavior of energy-powered products does not have to change significantly with the Powerwall.

The Powerwall will allow people to ‘sustain’ their current technological comforts, which allow

the average person to learn and collaborate with others from around the world.

A third of the world’s fossil fuels are used for transportation and another third is used to

generate electricity (Tesla Energy, 2015). While electric cars are designed to decrease fossil fuel

consumption in transportation, solar batteries have the potential to decrease fossil fuel

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consumption in electricity generation. Tesla motors have diverged the focus of the citizens away

from fossil fuels and directed it toward sustainable solar energy. In 2003 with the introduction of

electric cars, Tesla proved that they could be better than gasoline-powered cars with instant

torque, incredible power, and zero emissions thereby transitioning people into a sustainable

energy economy (About Tesla, 2015). With the release of the Powerwall, the world’s

consumption of electricity can gradually run on solar energy instead fossil fuels.

The world consumes 20 trillion kWh of electricity per year, which is powered by non-

renewables, mostly fossil fuels (Tesla Energy, 2015). This is enough energy to power a single-

family home for 1.8 billion years (Tesla Energy, 2015). The electricity consumption for the

communication network technology is growing fast, at the rate of 10% every year (Lambert et

al., 2012). The EPA estimated that it would take 1.6 billion acres of forest to fix the damage from

the U.S. electric power sector due to its production of 2,000 million metric tones of carbon

dioxide enough to burn 225 billion gallons of gas (Tesla Energy, 2015).

Open Source Patenting

When companies work collaboratively together to build innovative technology, it gives

people more options in the market, but most importantly, it makes the technology more

widespread and cost effective. Therefore, the more companies collaborate to advance solar

technology, the quicker it can fall into hands of the average consumers. The philosophy of open

source patenting is vital for innovation and society’s collaboration. The more sustainable

technology becomes economical, the higher the odds that the average consumers can join the

green revolution by becoming loyal customers and interact with other customers who have a

similar taste in technology.

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On June 12, 2014, Tesla announced that it would not file for patent lawsuits against

anyone who has good intentions to use that technology (Legal, 2015). In order to accelerate the

advent of sustainable energy, Elon Musk’s policy is intended to encourage other companies to

build their own versions of sustainable products so as to foster the development and

advancement of society (Musk, 2014). As a result, BMW benefited from sharing Tesla’s patents

and built their own version of electric cars and supercharging stations (Ramsey, 2014). The open

patenting philosophy inspired even Toyota when they decided to open their patents for the

hydrogen fuel cell Mirai in 2015 (Rimmer, 2015). This trend towards electric cars will only

continue on an upward trend as more car manufacturers find ways to innovate electric cars, using

Tesla’s patents.

Although open-source patenting began with cars, Tesla’s collaboration with the best

engineers at BMW and Toyota can lead them to new heights in solar battery innovation and

advancement. Although Tesla’s battery is already considered compact, it is possible to continue

making it more compact or hold more power. Moore’s law predicted that overall processing

power for computers will double every 18 months (Schaller, 1997). This is the reason society

went from having the large computer boxes to the sleek, thin laptops that can be seen today. In

the future, it is possible that solar battery packs may become trends that people want to

continually switch out for something better. In this way, open source patenting can foster the

development of new sustainable technologies that can be made quickly, effectively, and

economically (Rimmer, 2015). As an incentive, people get to see more variety when purchasing

ecofriendly products and it becomes much more affordable for the average consumer.

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People’s Behavior

People will have to plan things in advance if they become more reliant on solar energy.

Whereas one always expects electricity to power them anywhere there is an outlet, solar power

has its limitations. Because the sun powers the solar batteries, they have to be consistently

recharged by the sun. When the weather is bad, for instance, during a cloudy or a rainy day,

people will be more conservative because their solar powered batteries will receive less sunlight.

It will also become habitual for people to see how much solar battery charge they have, just like

they do when they check their phones, laptops, and other mobile devices to see how much charge

they have left. However, when the weather is good, they will increase their consumption of

power without feeling the need to worry about high utility bills since they will use stored

sunlight energy to cope up with their energy demands. This will influence their social

communication with their peers because they will not be restricted to be conservative with their

electricity usage. Today, people encourage others turn off lights when they are not in a room in

order to conserve fossil-fuel electricity; by using the Powerwall, it will no longer be a necessity

for turning off lights when not using a space.

Description

The Tesla Powerwall solar battery is going to revolutionize the way households consume

power, how people store their energy, and how they will become self-sufficient instead of relying

on utility companies who track their monthly electricity consumption and charge them high bills

based on their energy consumption, especially during the winter when people use the heat. The

Powerwall is a world-class battery, super-efficient, and an affordable way to store energy that

has since long been put in cars most of the time (Danielson, 2015). The rechargeable lithium-ion,

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software-equipped batteries that are found in Tesla’s cars can now be mounted inside or outside

a building (Danielson, 2015). The battery is made specifically to store energy at a residential

level for loading shift, backup power, and self-consumption of solar power generation (Tesla

Energy, 2015). Along with the lithium-ion battery pack is the liquid thermal control system and

software receives dispatch commands from a solar inverter. Its inverter is designed to integrate

with other inverters for a seamless connection so that the customer does not have to set anything

up. With its integration with the local grid, the Powerwall harnesses extra power thereby giving

consumers the ability to store their own energy (Tesla Energy, 2015). Benefits of the Tesla’s

battery include: -

Load shifting – The battery can save the owners financial costs by charging itself when

there is a low demand for electricity and discharging when there is a high demand for

electricity.

Increasing self-consumption of solar power generation – The battery is designed to store

surplus solar energy in the day so that it can use that energy in absence of the sun. The

battery provides continuous power of 2kW and a peak power of 3.3 kW.

Back up power – The battery provides households with power during an outage.

The Tesla batteries will release in the later half of 2015, and is going to maximize the

capacity for buildings to harness solar consumption so that there never really has to be a power

black out again (Tesla Energy, 2015). For household use, the Tesla Powerwall will come in 2

sizes: the 10 kilowatt-hour pack for $3500, which can essentially run a home if the power grid

goes down, or the 7 kilowatt-hour pack for $3,000, which is ideal for daily usage. The batteries

have a 10-year warranty so customers never have to worry about maintenance (Danielson, 2015).

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Research and Social Implications

War, Fossil Fuels, and the Media

The development and well being of society rely on sufficient energy supplies, and there is

an increase in concern about our dependence on oil because more than 80% of our primary

energy is powered by fossil fuels (Hammarstrom, 2009).

Not only does the impact of war affect the average person’s taxes, it also intensifies their

dislike for people in the Middle East due to media framing, which affects people’s tolerance by

altering the perceived importance of public order values (Nelson, Clawson, & Oxley, 1997).

Media framing is what eventually leads to heated debates between individuals who play a blame

games and discriminate against people instead of taking responsibility and collaboratively

working together to fix global issues. In order to end the war for oil and prevent the likelihood of

fighting similar wars in the coming years, the U.S must join the rest of the world in adopting less

fossil fuels and also scale down the size of its armed force (Bonds, 2013). Economists argue that

the economical impact of the war on fossil fuels will exceed 3 trillion dollars, which includes the

costs for health care of injured soldiers and costs making interest payments for a war greatly

funded through deficit spending (Bonds, 2013). With harnessing solar energy, one could

withdraw from using fossil fuels and focus the 3 trillion dollars into our economy, which will

also reduce people’s attitudes toward the people in the Middle East and diminish the effects on

military men/women and their families.

Average Consumers and Households

Solar energy is one of the few alternative sources of energy that could be scaled up to

meet the average consumers’ future demands. Today, many people are very conscious of how

much heat they use in the winter, and by turning the lights on/off when not being in the room.

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With the widespread of solar energy, people will not care about wasting their resources with such

intensity because it is renewable. Knowing that more solar energy reaches earth in one hour than

is consumed by mankind in a year, it would require less than 0.02% of this energy to fulfill our

energy requirements (Hammarstrom, 2009). Solar fuels enable conversion of solar energy into

useful forms of energy, namely heat, electricity, and fuels. Unless people are expecting cloudy

weather, people do not need to be conservative with solar power.

Currently, when people move homes, they have to find phone numbers of electric

companies to have the power transferred to their name before they can start using their

household electricity. With the Powerwall preinstalled in their homes, there would be no need for

people to go through this process. They would own their energy system, so they would not have

to call the electric company for blackouts or other issues; people will learn to take more

responsibility for their energy supply. The burden is passed on to the individuals to troubleshoot

any power issues, instead of the utility companies who provide them with electricity. So in case

there are any technical issues with the battery, they would either contact Tesla or work

collaboratively with their peers to fix the issues instead of calling the electric utility company.

Not only do solar fuels have long-term storage capacity, they play a vital role in

balancing out daily and yearly local variations in solar irradiation, and therefore have a

significant contribution toward future energy systems (Hammarstrom, 2009). In all certainty, the

Tesla Powerwall might the next large-scale sustainable energy solar powered battery that can

fulfill this niche and target to the average household consumers.

Social Identities, Social Categorization, and Social Statuses

Nowadays, people who use ecofriendly technologies like electric cars, see themselves

belonging to the “green” category. Their social identities and social statuses are reinforced when

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they see other people using electric cars or even hybrids. Social identity theory states that

“people tend to classify themselves and others into various social categories defined by

prototypical characteristics abstracted from the members” (Turner, 1985). Social classification

serves two functions (Ashforth & Mael, 1989). First, it “cognitively segments and orders the

social environment by providing individuals with schematic means of defining others.” This

means that person is “assigned the prototypical characteristics of the category to which he or she

is classified” (Ashforth & Mael, 1989). Second, “social classification enables the individual to

locate or define him- or her self in the environment” (Ashforth & Mael, 1989). To understand

this, one can differentiate people who shop at Whole Foods versus people who shop at Giant

Eagle or Kroger. People shopping at Whole Foods are more likely to be viewed as

environmentally friendlier because they purchase organic groceries that have no artificial

pesticides in them.

Businesses have realized the importance of promoting a green revolution by providing

customers with rewards/incentives for those who use green technology systems, and this has

influenced people’s social categorization, social identities, and social statues. For instance,

environmentally friendly cars today get the same parking privileges as handicap cars and front-

row parking. In Florida an increasing number of Orlando buildings and venues are instituting

front-row hybrid-only parking spaces in an attempt to earn “green” the building status and

reward car owners considered environmentally friendly (Seidi, 2011). People consider it as

promotional to deem the parking spots as “sustainable spaces.” reserving spots for guest driving

hybrid/electric cars to events, thereby recognizing them for doing their part to be

environmentally aware and green (Seidi, 2011).

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Even Ohio has significantly contributed to promoting the widespread of green

technologies in Columbus (Evans, 2012). Tesla’s charging stations in parking lots make it much

accessible for common people to purchase electric cars throughout Columbus in areas like

Victorian Village, Easton Town Center Parking Garage, and even Ohio Statehouse Parking

Garage (Evans, 2012). As an incentive, Columbus is working with Clean Fuels Ohio, which was

rewarded with a $500,000 Clean Cities planning grant to encourage community planning for

plug-in vehicles and their infrastructure. With the initial charging stations, it is easy to market to

residents and make the choice of switching to a sustainable energy vehicle much easier (Evans,

2012).

Just like their impeccable eclectic car line, the Tesla’s Powerwall storage technology,

teamed with solar, is predicted to do the energy industry what the internet did to media and

mobiles did to the telephone handset (Clemente, 2015). For the world of smart grids, this is

exciting news because people will be able to control and shift energy use throughout day and

night, and store energy wherever they want, furthermore simplifying the process for households

and businesses to going off-grid (Clemente, 2015).

People today are currently developing eco-habits and when Tesla and other companies

make solar energy accessible to the average person, the habits that people are nurturing will

begin to manifest more loudly and influence those around them. People will also develop social

categories within society and becoming part of the green revolution will influence their lifestyle.

For example, individuals will begin avoiding shopping or patronizing stores/businesses that are

not eco-friendly and will instead shop more at Whole Foods and similar places. Even if some

people scoff at the habits of eco-friendly individuals, their reach and influence will induce some

people to revert into the spiral of silence. The local, state, and federal government will most

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likely create new rules and regulations in order to sustain our planet and solar energy will be

instrumental with these changes. In fact, on August 2, 2015, President Obama announced a plan

aimed at a massive reduction in greenhouse gas emissions from the country’s coal-burning

power plants (Serfaty, 2015). The plan is aimed to combat climate change and includes an

incentive program for states to get a “head start on meeting standards on early deployment of

renewable energy and low-income energy efficiency” (Serfaty, 2015).

In addition to the rules and regulations on climate change, they already have laws in

Seattle where households and businesses that do not compost get a fine of $50 because

composting food waster reduces emissions of methane, a strong contributor of climate change

(Kennedy, 2014). In fact, many cities around the U.S. and other parts of the world no longer use

plastic in grocery stores and charge customers extra for not having bags. This has changed

people’s habits in those cities, as they have to remember to bring bags with them. In the same

way, it is only a matter of time before the state and federal regulators get involved with the eco-

movement and start imposing fines/penalties for not being eco-friendly.

Social Drawbacks

Unequal Sunlight

With the Tesla Powerwall installed in consumers’ households, not everybody in this

country will have equal power consumption privileges, and social categorization will lead to

people feeling left out from the green revolution in areas that have little sunlight. For instance,

certain parts of the world such as Seattle have consistent bad weather/blocked sunlight, which

impacts their ability to harness solar energy during the day. Consumers in these areas might be

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less likely to consume solar energy as their primary means of energy storage and may continue to

be dependent on fossil fuels for their power consumption.

High Installation Costs

Anther hurdle that might affect average consumers to purchase the Powerwall is the high

installation costs of the solar battery. While Tesla is ahead of the game with their current pricing

for stationary lithium-ion batteries at $350 per kilowatt-hour, the actual costs of installations may

almost be twice the price of their entry-level Powerwall unit (Danielson, 2015). This will widen

the group of people who can afford the Powerwall in their houses and those who cannot. When

there is such a circumstance, in-group members can play off the out-group members to further

strengthen their valued in-group identity including their self-esteem (Giles, 2011). Such an

outcome will further strengthen the in-group’s social status, and they might discriminate against

people who do not harness solar energy by categorizing them as the “non-ecofriendly” group.

Media, Monopoly and Big Utility Companies

Perhaps one of the biggest barriers that might affect the average consumers purchasing

the Tesla Powerwall is the monopoly of the big utility companies. And since these companies

have large funds to drive the media with advertisement and marketing strategies, they can slow

the progression of Tesla Powerwall to reach the hands of the average consumer. In this way,

media framing may indirectly affect the purchasing habits of the consumers who solely rely on

the mass media as their primary source of information.

Very few utilities have been interested in the renewable solar technology because green

energy is threatening their monopoly on power (Danielson, 2015). Naturally, if consumers are

able to store energy from the sun everyday and rely less on power providers, these companies

will suffer a decline in demand and even bankruptcy (Danielson, 2015). As a matter of fact, the

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Hawaiian Electric Company has already declined the progress of solar energy by charging

customers a premium if they use solar energy systems (Danielson, 2015). In Arizona, individuals

who use solar energy have a $50 increased fee per month, and in Wisconsin the average cost per

year for consumers who use solar energy is $182 (Danielson, 2015). This pricing strategy

negatively affects peoples’ purchasing habits and they become less motivated to invest in green

technologies and even recommend the technology to their social groups.

Recommendations

Teamwork and Collaboration

People must to work together to solve big problems so that the world can become a better

place. If people living in areas with excessive sunlight can collaborate and work with people in

areas that receive low sunlight, they can figure out ways to supply renewable energy to them

through the use of long distance power grids. With the widespread of solar panels and solar

batteries, it is estimated that it would require 160 million units of solar batteries to power the

country, and 2 billion units to make all the electricity generation in the worlds renewable

(Danielson, 2015). For the Powerwall to reach the masses of power providers, society will need

to invest additional time, resources, and persuade the utility companies to play along and

collaborate to build a sustainable energy future (Danielson, 2015).

I also believe Tesla’s employees should collaborate with real estate professionals and

preinstall solar panels and solar batteries in newly constructed houses. So when a customer

purchases a new house they also get to invest in green energy, which will reinforce their social

statuses and they will categorize themselves as ecofriendly.

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Campaign Advertising

I believe that company and its CEO, Elon Musk should continue pushing hard to

persuade people that purchasing their product could benefit society in many ways, especially the

users. They should create campaign advertisements and use guilt/emotional appeals about the

war on oil so that the average consumers are forced to purchase green technologies. This is

because guilt appeals motivate prosocial behavior, which might persuade people to change their

purchasing habits (Huhmann and Brotherton, 1997). Guilt appeals resonates responsibility and

violates one’s personal and moral standards (Maria, 1992). Therefore, the individual will be

more likely to purchase green technologies because failing to avert a negative consequence such

as the wounded casualties fighting for the war on oil will make the individual feel guilty (Maria,

1992).

Media, Social Influence and Persuasion

Using the media and influencing people can help change people’s attitudes and their

purchasing habits. In order to overcome their rival utility providers who are against the use of

green energy, Tesla should build stronger relationships with the media and the government to

educate the masses the benefits of using green energy. Social Influence, a core component of the

Unified Therory of Acceptance and Use of Technology Model, is defined as the “degree to which

an individual perceives that important others believe he or she should use the system”

(Venkatesh, et al. 2003). By using media as a tool for social influence, Tesla can educate the

younger masses by spreading awareness in websites such as Twitter, Facebook, and Instagram.

Finally, if people get convinced that purchasing the Tesla Powerwall can save them a lifetime of

electricity bills and they will never have to face a power blackout again, the average consumer

would be more than willing to invest over $3,000 in a sustainable energy batteries.

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Conclusion

From an electric car company that made human transportation have a sustainable energy

future, Tesla is trying doing the same for households and businesses with their stationary battery

products. Although people working for utility companies that rely on fossils fuels for their

energy dependency might lose their traditional jobs because of sustainable energy alternatives,

the social impact of the Powerwall will create new jobs in the solar energy market and influence

the way companies develop their sustainable energy products.

Therefore, it is reasonable to say that the Tesla Powerwall will impact future laws and

regulations that affect the everyday person, diminish people’s dependency on fossil fuels by

revolutionizing the way average households consume energy, influence people’s social identity

through social categorization, and create new opportunities in the eco-friendly market.

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