SolarCity and Tesla Motors will be expanding their partnership in battery storage technology. The two companies, which already collaborate on electric vehicle supercharging stations, have joined together to create a solar panel system with a battery storage unit included. The system, dubbed DemandLogic, would automatically store electricity during low-use hours for use during peak hours – offering savings for commercial and institutional customers that pay charges based on their peak electric load.

The battery systems are planned for installation in schools, retailers, and offices in California and New England, and would be leased under a 10-year contract without up-front costs to the consumer. “We are providing [customers] a solution to reduce their energy cost and demand cost,” said Lyndon Rive, CEO of AEE member SolarCity.