A home backup battery can allow you to maintain power during outages or lower your electric bill. The Tesla Powerwall is a popular battery that stores solar energy to provide backup power to a home. If you know Tesla mainly for its pricey electric vehicles, you might have questions about how much the Tesla Powerwall costs. This guide breaks down the cost of a Tesla Powerwall to help you determine whether it’s worth the price.
What Is the Tesla Powerwall?
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The Tesla Powerwall is a home battery system that stores solar energy. During the day, the Powerwall charges with sunlight and stores this energy until needed. Some people use the battery to cut energy costs by consuming stored solar energy rather than expensive grid energy, and to have electricity during power outages by becoming more energy independent.
There are three versions of the Powerwall: the Powerwall 2 and the Powerwall+, and you may have read about the release date of the Powerwall 3 . All three versions have a capacity of 13.5 kilowatt-hours.
With this capacity, the Powerwall can power an entire home during an outage. How long it provides power depends on several factors, including the size of your home, the number of appliances you have, and your home’s energy usage. You can also stack multiple units for increased capacity.
How Much Is the Powerwall?
The Tesla Powerwall cost varies depending on your location and installation fees. Prices change quickly, but the price is currently in the ballpark of $8,000 before installation and taxes. Here’s a sample breakdown of the price:
- Powerwall: $7,000
- Gateway fee: $900
- Accessories: $200
- Installation: Varies
- Taxes: Varies
You must use either Tesla or a third-party certified installer for installation, so those fees can vary. In most cases, you can expect to pay between $9,000 and $13,000 for the total cost of a Tesla Powerwall. You can receive a multi-system discount if you purchase two or more units.
Tax Credits
The Powerwall price also doesn’t include tax credits you can receive for installing the system. It’s eligible for the federal Residential Clean Energy Credit. This 30% credit applies to the cost of new clean energy property installed in your home between now and 2032. With this credit, for example, you can save $2,520 on an $8,400 Powerwall before installation and taxes.
Is the Price Worth It?
Solar batteries are not cheap. When comparing the Powerwall with similar batteries, you’ll find that the Tesla solar battery cost is largely in line with others on the market. Plus, the Powerwall has several advantages, including:
- Large storage capacity
- Stackability for higher power output
- Rain and weather resistance for use in all climates
- 10-year warranty with unlimited cycles
- User-friendly Tesla app
Overall, the Tesla Powerwall is worth it if you want a high-capacity solar battery with good power output. It works well in warm and cold climates, even during the hottest part of summer or a winter ice storm. Its 10-year warranty with unlimited cycles means there’s no cap on the number of times the battery can drain and recharge over its life span.
Which Powerwall Should You Buy?
In comparing the versions that have been on the market, the Powerwall 2 and Powerwall+, both have the same capacity, but the Powerwall+ has a higher backup power output rating. You can buy the Powerwall 2 with or without solar panels, but the Powerwall+ must be part of a solar installation. The Powerwall+ comes with an integrated converter that’s compatible with solar panels.
If you’re building a new solar power system for your home, the Powerwall+ may be a better option, since it comes with an integrated converter. Otherwise, the Powerwall 2 is a good purchase if you just want a solar battery to maintain power during outages, lower your electric bill, or reduce your reliance on the grid.
What’s the Tesla Powerwall 3 Price?
Tesla’s latest version of its solar battery, the Powerwall 3, has been highly anticipated. Check the Tesla site for pricing announcements, which will depend on how customers configure their systems.
Tesla says the Powerwall 3 has the same capacity as the other two models but supplies twice as much power. Unlike the other two Powerwall models, you cannot add the Powerwall 3 to an existing Powerwall 2 or Powerwall+ battery. It’s also not compatible with other solar inverters.
Tesla Powerwall vs. a Diesel or Natural Gas Backup Generator
If you want to use a Powerwall primarily as a way to have power during an outage or blackout, you may wonder if it’s a better option than a diesel or natural gas whole-home backup generator. Compared to the battery, which stores energy for later use, a generator connects to an electric panel and uses fuel to provide backup power when the electricity goes out.
While both the Tesla Powerwall and a backup generator achieve the same purpose — keeping the lights on during a power outage — they have differences in terms of cost, installation, and energy. A Powerwall will likely have a higher upfront cost than a generator. Diesel and natural gas generators usually start around $2,000 or $3,000 and increase in cost depending on the size you need. However, a diesel generator will require diesel fuel to run, which can add up over time. While natural gas generators connect to a pipeline, they may still have ongoing costs related to maintenance.
Both the Powerwall and a backup generator will require professional installation. Those costs can vary widely depending on the installer you choose. However, with a generator, there may be additional installation costs if you need to pour a concrete slab or connect the generator to a gas pipeline.
One of the biggest differences between the Powerwall and backup generators is the energy source. Obviously, the Powerwall uses clean solar energy to power your home during outages. While diesel and natural gas are more energy-efficient than traditional gasoline, they are still fossil fuels. If you’re interested in using clean energy, then Tesla’s battery or a similar solar battery is the way to go.
Overall, the Tesla Powerwall is a good choice for a solar battery with a large battery capacity and high power output. With potential savings, such as a multi-system discount or federal tax credit, you can lower the price for this system. In the long run, solar batteries like the Powerwall can save you money by lowering your electric bill and reducing your dependence on the grid.
FAQs About the Tesla Powerwall
Here are the answers to other frequently asked questions about the Tesla Powerwall.
Can you live off-grid with a Tesla Powerwall?
Yes, it’s possible to live off-grid with a Tesla Powerwall. However, unless you have a small home or low energy needs, you will need multiple units to go off-grid completely.
Can you save money with a Powerwall?
A Tesla Powerwall can help you save money on your electric bill, especially if you have a time-of-use plan. If you use solar energy during peak times of the day, you can reduce your energy bill. You can also use the Powerwall in the evenings to save more money.
If you have a time-of-use plan, your electricity cost fluctuates during peak and off-peak hours. During off-peak hours, when energy rates are lower, the Powerwall can store solar energy. Once rates increase during the peak hours, such as summer afternoons, you can use free solar energy from the Tesla battery, rather than paying high electric rates.
You’ll see the most energy savings with a Powerwall if there’s a substantial difference between your peak and off-peak energy prices. For example, if your utility charges 33 cents per kilowatt-hour (kWh) during peak hours and 11 cents per kWh during off-peak hours, you can use solar power from the Tesla battery during those peak hours to avoid paying higher rates for electricity.
In this example, the savings you’ll receive could be significant, since there’s a large difference between peak and off-peak costs. If you don’t have a time-of-use plan or the difference between the time of use is minimal, you may not see as much energy savings with a Tesla battery.
How do you install a Tesla Powerwall?
You can order a Powerwall through Tesla or a certified installer. Depending on your location, Tesla will install your battery if you order it online. Otherwise, you can contact a certified installer in your area. Either way, installation fees are separate when you purchase a Powerwall.
Can you use a Tesla Powerwall without solar panels?
You can use the Powerwall 2 without solar panels as a stand-alone battery. However, the Powerwall+ can only be used with a new or existing solar installation. You don’t need to have Tesla solar panels to use a Powerwall+, however, since it’s compatible with other types of installations.
When using the Powerwall 2 without solar panels, it acts much like a regular battery. You charge it during off-peak times and then use the energy it stores during peak rate times. You can also use the Powerwall 2 as a backup energy source during a power outage.
