Powerwall batteries introduced by Elon Musk.
Tesla Motors will develop a range of batteries that store solar energy and could be used to power homes and businesses during power surges.
The company said shipping of the Powerwall units would start in the US this summer, providing energy to consumers off the grid and to those in remote areas.
Chief executive Elon Musk added the solution could help change the "entire energy infrastructure of the world".
Analysts said the rechargeable lithium-ion battery unit will be built using the same batteries Tesla produces for its electric vehicles.
Tesla will sell the 7kWh unit for £1,954, while the 10kWh unit will retail for £2,275 to installers.
Mr Musk, also chairman at SolarCity, said both companies will partner to install the home batteries, but there would be more companies joining the venture later on.
The solution will also be installed in other infrastructures such as data centres.
James Hamilton, engineer at AWS, said: "Batteries are important for both data center reliability and as enablers for the efficient application of renewable power. They help bridge the gap between intermittent production, from sources like wind, and the data center’s constant power demands.
"We’re excited to roll out a 4.8 megawatt hour pilot of Tesla’s energy storage batteries in our US West (Northern California) Region. This complements our strategy to use renewable energy to power our global infrastructure."