Tesla’s next big clean energy source is rising in the Arizona desert

A large solar and battery project is being built in the Arizona desert, and Tesla has agreed to buy most of its power. ContourGlobal broke ground on October 6 on Project Sterling, near Lake Havasu City in Mohave County. The site will cover more than 2,000 acres and is expected to start operating in 2028.

The project will combine over 760,000 solar panels with more than 300 battery storage containers using lithium iron phosphate (LFP) batteries, a common, stable battery chemistry for large storage systems. The batteries can store about 1.4 gigawatt-hours of power and run at full output for around four hours, letting the site supply electricity for up to 16 hours a day even when the sun isn't shining. Tesla has a long-term deal to buy about 1 terawatt-hour of electricity a year from the plant, roughly 90 percent of its expected output, along with the renewable energy certificates that go with it. Some of the power will also be able to flow into California's grid.

For homeowners, this isn't a program you can apply to or a rebate tied to your own house. It's a sign of how much utility-scale solar and battery storage is expanding to meet demand from big buyers like Tesla, which adds more renewable power to the regional grid over time. Construction is expected to employ around 400 workers through 2028 and will include building a new access road connecting to Route 66, but the project itself doesn't involve homeowner incentives or direct savings on your utility bill.