The companies will create an inverter solution that will enable for grid and PV integration with Tesla’s Powerwall home battery solution.

The collaboration builds on SolarEdge’s DC-optimized inverter solution and Tesla’s automotive-grade energy-storage technology to provide an economical solution for residential solar power generation.

The new solution, which is expected to be available by the end of this year, will serve as a backup power source in case of an electrical outage. It claims to keep operations and maintenance costs low with remote monitoring and troubleshooting.

The solution will have SolarEdge’s SafeDC architecture, which allows safe voltage levels in case of inverter or grid disconnection.

Tesla Motors CTO JB Straubel said: "Tesla’s collaboration with SolarEdge unites leading organizations in two rapidly-growing Industries — solar energy and energy storage — to bring homeowners a more cost-effective and integrated energy generation, storage, and consumption solution.

"SolarEdge’s commitment to improving the value of PV systems through product innovation, combined with more than 1.3 GW of successful deployments, makes it an ideal partner for Tesla to develop and introduce this new energy storage solution to the PV market."

The SolarEdge DC optimized inverter system increases power generation at the individual PV module-level and reduces the cost of energy generated by the solar PV system.