AMS will use about 40% of the order in developing 50MW of storage for Southern California Edison, under an agreement reached in November 2014, including the creation of the first fleet of Hybrid-Electric Buildings.

Tesla’s Powerpack energy storage systems will be deployed and operated by AMS in commercial and industrial buildings to offer grid support to utilities utilizing customer load.

AMS CEO Susan Kennedy said: "AMS’ projects require intelligent, powerful and scalable energy storage solutions. Tesla’s technology gives us the edge we are looking for."

The initial 10MW Hybrid-Electric building project of AMS is due to be installed in Irvine, California in 2016. The company will also sign battery supply deals with additional technology providers.

A master agreement was also signed with Black & Veatch for engineering and construction services.

AMS deploys advanced energy storage systems in buildings to cut energy costs for consumers and offer instant load reduction to electric utilities.

California-based Tesla designs and manufactures electric vehicles and renewable energy storage. The company delivered about 70,000 electric vehicles to global customers.