Tesla’s most recent earnings report demonstrates that Elon Musk’s investments in energy storage and solar technologies are starting to yield positive outcomes.

The energy storage sector proved to be a key driver of the company’s performance during the fourth quarter, experiencing nearly 200% growth compared to the same period last year. According to the company’s shareholder presentation, “[energy] deployments saw considerable expansion from 2019 to 2020. Total battery deployments exceeded 3 GWh in a single year for the first time, representing an 83% increase over the previous year.

Solar energy installations also experienced growth, increasing to 205 MW for the year, which represents an 18% rise compared to the previous year. The company attributed this progress to “significant improvements in our solar retrofit strategy, including product streamlining, cost reductions, and competitive pricing.”

The energy generation and storage business generated $752 million in revenue during the fourth quarter, a substantial increase from $436 million in the same quarter of the prior year, and a rise of $579 million from the third quarter.

This growth is anticipated to continue for Tesla’s power business. The company has consistently expressed its ambition to become a leading global power or utility provider, and increasing global investment is supporting the transition to renewable energy sources.

Tesla stands to benefit considerably from the Biden administration’s renewable energy initiatives, particularly its objectives to significantly expand solar energy development and building infrastructure. The planned large-scale infrastructure investments will necessitate substantial battery storage capacity and extensive solar installations.

Alongside government initiatives, private investment is also surging into solar installations and energy storage.

In the past week alone, investors have directed approximately $2 billion towards companies that provide financing for homeowners seeking solar installations and energy efficiency improvements. One such company, established by a former SolarCity executive, announced an $800 million capital raise today.

A portion of this funding is expected to translate into increased sales for Tesla’s energy storage and solar installation services.