Tesla & ContourGlobal Sign Long-Term Power Agreement Covering 1 Terawatt-Hour/Year for Sterling Renewable Project

Tesla has signed a long-term power purchase agreement with ContourGlobal for electricity from a huge new solar-plus-battery project in Arizona called Project Sterling. The project pairs 450 megawatts of solar panels with 360 megawatts of battery storage that can hold 1.4 gigawatt-hours of energy, and it will produce more than 1.1 terawatt-hours of electricity a year. Tesla will buy about 1 terawatt-hour of that annually, roughly 90 percent of the plant's output, making this one of the largest solar-and-storage power deals ever signed from a single U.S. plant.

The project connects to the grid in Arizona but has rights to send power into California's electricity market as well. Construction work began in 2025, with major on-site building expected later this year and the plant aiming to start operating in 2028.

This is a large corporate energy deal between a power company and Tesla, not a program tied to home upgrades or rebates. It does not change what's available to homeowners for weatherization, heat pumps, or other efficiency projects. Its relevance is mostly as a sign of how much solar and battery storage is being built to meet growing electricity demand, including from companies like Tesla, which can affect how much clean power is on the grid over time. There is no direct action for homeowners tied to this specific project.