Tesla introduced its home battery solution, the Tesla Powerwall, in early May and new competition is already hitting the market. Mercedes-Benz was apparently already well at work on its own solution; the company recently introduced a new modular power kit that will compete with the Tesla Powerwall.

Each "energy storage unit," as Mercedes-Benz calls the modular battery system, can store up to 2.5 kWh of energy. Up to eight of the units can be combined for a storage capacity of 20 kWh. Daimler AG hopes that the new cells are adopted by both companies and consumers for private use in their homes.

Deliveries of the power cells are expected to kick off in September, and Mercedes-Benz is accepting preorders for the units online now.