The deal is to supply “Powerpacks”, the commercial and utility scale version of Tesla’s Powerwall, to Advanced Microgrid Solutions (AMS). The startup, which offers technology-agnostic services to deploy energy storage systems, said the deal was the first battery supply agreement and more will come.

Tesla is reportedly selling Powerpacks for $250/KWh, which would mean this deal could be worth as much as $125 million over the period of the contract.

Here’s what Susan Kennedy, CEO of AMS, had to say about the agreement with Tesla:

“Tesla’s focus on performance and design makes them the stand out technology choice for our projects. AMS’ projects require intelligent, powerful and scalable energy storage solutions. Tesla’s technology gives us the edge we are looking for.”

Tesla’s battery packs should be first supplied to AMS next year for a 50MWh project with Southern California Edison.

Here is the full press release: