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Strong Tesla Powerwall battery benefits from widespread automotive brand recognition and a boom in residential solar adoption. This increase is further fueled by incentives, including a federal tax credit that allows you to claim 30% of the total cost of your storage system on your tax return.
But even with many loans, rebates and other incentivesbatteries are often the most expensive single component a residential solar system.
Fortunately, the Powerwall 3 is significantly cheaper than other batteries on the market. In fact, the Powerwall 3 is the cheapest ever, costing about $1,000 per kilowatt-hour of energy storage, according to the report EnergiSage. Since the Tesla Powerwall 3 is a 13.5 kWh battery, you’re looking at around $13,500.
In this quick guide, we’ll take a closer look at the Tesla Powerwall 3 to help you decide if it’s worth buying.
“The thing about batteries is they have a 10- to 15-year life, and most of the time homeowners are financing for 25 years,” said Garrett Mendelsohn, founder Solar Bootcamphe told CNET. “So you’re financing a product that won’t really do anything for 25 years and you’re paying interest on it.”
Let’s dive into the details to help you evaluate what makes sense for you.
What is a Tesla Powerwall?
Simply put, Tesla Powerwall is a large battery that can be mounted inside or outside your home. Can be plugged in for charging electric vehicle in your garage, provide backup power, store excess solar energy from connected solar array or all of the above. You can also connect multiple Powerwalls together for more capacity to do all of these things at once.
Tesla Powerwall solar battery, like any other solar energy storage systemcan keep your core systems online during network outages, help maximize your net metering savings or even be your primary energy source if you have one offline setup.
Powerwall 3 is the latest model, offering a major upgrade over previous versions. However, it is not compatible with older Powerwall systems.
Those are the basics. Here are some more technical details:
Tesla Powerwall battery specifications
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| Category | Tesla Powerwall 2 | Tesla Powerwall Plus | Tesla Powerwall 3 |
|---|---|---|---|
| Usable capacity | 13.5 kWh | 13.5 kWh | 13.5 kWh |
| How much can I stack? | Up to 10 units | Up to 10 units | Up to four units |
| Round trip efficiency | 90% | 90% | 89% |
| Discharge depth | 100% | 100% | 100% |
| Continuous Power Output (Online) | 5 kV | 5 kV | 11.5 kV |
| Continuous Power Output (Off Grid) | THAT | 7 kV – 9.6 kV | THAT |
| Battery type | Lithium-ion | Lithium-ion | Lithium-ion |
| AC- or DC-coupled? | AC | AC | AC |
| Price | $8,400 – $13,000 | $8,400 – $13,000 | $13,500 |
How much does a Tesla Powerwall cost?
By home battery standards, Powerwall batteries are cheaper. Tesla’s Powerwall 3 costs about $1,000 per kWh of storage. according to a recent report from EnergiSage. The Powerwall 3 is a 13.5 kWh battery, so that’s about $13,500. But this does not include the cost of installing the battery. We were quoted $16,551 for the cost of installing a Powerwall 3 on a home in Fort Mill, South Carolina, via Tesla’s website. This price includes the battery, gateway device, accessories, installation and taxes – not too bad.
Older Powerwall models are a bit cheaper, ranging from $8,400 to $13,000. However, we suspect that Tesla is slowly phasing them out.
Other factors can affect the total cost of installing a Powerwall, such as the cost of labor and materials to install it in a safe and convenient location. On the other side of the ledger, federal tax creditother incentives from state and local governments, utilities, and even Tesla itself can lower the net price.
Tesla offers an energy design tool to help increase sales, but it’s also helpful to get an idea of how much you could expect to spend on a solar system for your home that includes a Tesla Powerwall battery. Depending on your home’s energy needs, you may need multiple Powerwalls if you want to back up your entire home.
And remember – don’t make any big decisions based solely on online research. Talk to multiple installers in your area to get more than one quote specific to your situation.
Advantages and disadvantages of Tesla Powerwall
Advantages:
- Unlimited cycle guarantee
- High power output
- Well-rounded efficiency and performance
- Cheaper than other batteries of similar size
- Compatible with and without solar panels
Cons:
- Limited modularity
- Glitchy app for power management
- Poor customer service reputation
- Not compatible with other Powerwall models
Is the Tesla Powerwall worth it?
If you are ready to store a significant amount of energy for your home, Powerwall is a good choice. It has a great warranty, strong performance, an extremely competitive price and the support of a well-known brand. But some have reported that the company’s customer service is lacking. Tesla no longer has a media office and did not comment for this story.
For those who have existing Powerwall 2 or Powerwall Plus models, you should know that you cannot install Powerwall 3 within an existing system. That, of course, could be a deal breaker. However, it’s clear that Tesla wants you to upgrade to the Powerwall 3 and leave the older, less powerful models behind. Since one of them is much more powerful than previous models, it could be a smart upgrade.
If you’re on the fence about getting a big battery, Mendelsohn advises you might be better off waiting. Most home solar system components are guaranteed for 25 years, but batteries are rarely guaranteed to last more than a decade, he points out.
“If you don’t have blackouts, it’s not really worth the price.” “You’re spending $13,000 to $15,000 … for a battery that can’t even fill a full house,” Mendelsohn says. “So it doesn’t make much sense until the battery technology gets better, and the warranty on them can be 25 years.”
Frequently asked questions
Does the Tesla Powerwall qualify for the federal solar tax?
Yes, Powerwall is eligible for a 30% federal tax credit.
How many Tesla Powerwalls do I need?
Several factors come into play here, including your energy goals and the needs of your home. You can start to get a feel for it by using Tesla’s Energy Projection Tool and talking to local installers.
What is the difference between Tesla Powerwall 2, Powerwall Plus and Powerwall 3
The Tesla Powerwall 2, Plus and 3 have a usable capacity of 13.5 kWh and a 100% depth of discharge, but differ in power output and integration. Powerwall 2 has a continuous output of 5kV, while Powerwall Plus adds a built-in solar inverter and increases the reserve power to 9.6kV under full sun. Powerwall 3 is the most powerful, offering 11.5 kV of continuous power, but is incompatible with earlier models, limiting modularity to four units. All models share an unlimited cycle warranty, but the Powerwall 3’s performance is a significant upgrade.
How long will Powerwall 3 last?
Powerwall 3 can last about 10 to 15 years, depending on how you use and maintain it. Tesla also offers a 10-year warranty for added peace of mind.
