The Powerpack system that powered the Tesla launch event.

Last week, Tesla Motors announced an ambitious product which could potentially change the energy industry.

Tesla’s plan is that homes and businesses can be powered by solar panels and also store the energy throughout the day and use it to run their homes at night through one of their new Tesla Powerwall batteries.

The launch dominated energy news over the weekend however the most revolutionary part of the news was the price tag on its utility-scale big sister, the Powerpack: $250/kWh.

“There’s nothing remotely at these price points,” said Tesla owner Elon Musk.

The technology used in the battery, called the Powerwall, is a tight kept secret however it is believed to be very similar to the technology they use to power their vehicles.

“Our goal is to fundamentally change the way the world uses energy,” the company’s founder, Elon Musk.

Tesla’s newly unveiled product includes the $3,500 Powerwall, which is a home-based battery pack that can retain up to 10 kilowatt-hours of power.

The company is also planning to launch a commercial business battery-storage system, called the Powerpack. Last year Oncor Electric Delivery studied the costs and benefits of installing large batteries on Oncor’s grid in Texas. They worked out that providing they could purchase the batteries for $350 per kilowatt hour of capacity the benefits would be greater than the costs.

Last year the cheapest utility-scale batteries were ranging from double to ten times the price they needed to meet. They expected prices may reduce to $350/kWh in 5 more years but it appears Tesla may have made this a reality already in 2015.

The boxes Tesla showed at its launch are around 33 inches (0.8 meters) wide, 51 inches (1.4 m) tall and 7 inches (17.8 centimeters) deep with an aesthetic looking design which is aimed to be easily setup and can even be connected to the internet to monitor usage.

At the moment most people who use solar panels to power their home sell the excess electricity back to utility companies so this offers a new alternative especially as this stored energy can be used in an evening when solar power isn’t being generated.

With Tesla’s excellent design and marketing skills this product is expected to have a big effect on the market.