Mercedes-Benz Energy has teamed up with Vivint Solar to take on Tesla’s solar roof and Powerwall.

As part of a strategic collaboration, Vivint Solar customers will be given the opportunity to purchase an energy storage system from Mercedes. Each system consists a 2.5 kWh battery and up to eight systems can be combined together to store a total of 20 kWh of energy.

The agreement marks Mercedes-Benz Energy’s first collaboration with a U.S. solar provider and is the first step in the company’s push to bring “premium, high-performance, road-tested technology” into the American residential battery market.

There are several advantages to using an energy storage system as it provides backup power when the electric grid goes down. Customers can also reduce energy costs by using battery power during peak times when electricity rates are higher.

The partnership will be launched in California, during the second quarter, and Vivint Solar will customize the energy solution to meet each customer’s needs. The companies declined to mention pricing but noted new customers will be able to finance the solar panel and energy storage setup or purchase it outright.

Mercedes-Benz Energy Americas CEO Boris von Bormann commented “With batteries featuring the best in automotive engineering from Mercedes-Benz, and high-quality solar energy systems from Vivint Solar, our solution allows customers to take the next step toward a sustainable energy future.”