The cost of the Tesla Powerwall has been up for debate since its release, with figures ranging in various directions.
To date, there have been approximately 250,000 Tesla Powerwalls installed across the globe, spanning from the United States to Australia.
So why is the cost of a Tesla Powerwall still somewhat of a mystery to most? Surely we have enough real-world applications to establish an accurate estimated cost?
One such reason could be that the cost of a Tesla Powerwall differs from location to location.
For this reason, we thought it necessary to conduct our own study to provide our readers with some further insight into the issue.
In this article, we’ll establish how much you can expect to pay for a Tesla Powerwall if it’s worth the money, and what you can expect regarding a return on your investment.
How Much Does A Tesla Powerwall Cost?
As of September 2022, the total cost of installing one Tesla Powerwall battery is $12,500 excluding any solar tax incentives.
|1 Powerwall Battery||$12,500|
|2 Powerwall Batteries||$20,500|
|3 Powerwall Batteries||$28,500|
|4 Powerwall Batteries||$36,500|
|5 Powerwall Batteries||$45,000|
|6 Powerwall Batteries||$53,500|
|7 Powerwall Batteries||$62,000|
|8 Powerwall Batteries||$70,500|
|9 Powerwall Batteries||$79,000|
|10 Powerwall Batteries||$87,500|
A Tesla Powerwall will cost between $12,500 – $87,500, depending on the amount of Powerwalls you’d like installed. Generally, most homes will require a minimum of 2 – 4 days of power autonomy in the event of a prolonged blackout, which depending on your electricity consumption, will require around 1 – 2 Tesla Powerwalls.
When establishing our Tesla Powerwall quote, we spoke with a Tesla representative who informed us that the prices we listed above-included installation costs.
He also informed us that currently, you’re not able to purchase the Tesla Powerwall individually; it must be combined with a Tesla solar system installation.
Taking this information into consideration, you can expect your costs to go up. By how much exactly depends on the type and size of the solar system you get installed.
But on average you could expect to pay an extra amount of between $12,000 – $30,360 for Tesla solar panels, and much more if you want an actual Tesla Solar Roof installed.
It is, however, important not to forget about solar tax incentives.
Check out your expected costs after the tax reduction.
|Powerwall||Cost||Incl. Tax Incentives|
|1 Powerwall Battery||$12,500||$8,750|
|2 Powerwall Batteries||$20,500||$14,350|
|3 Powerwall Batteries||$28,500||$19,950|
|4 Powerwall Batteries||$36,500||$25,550|
|5 Powerwall Batteries||$45,000||$31,500|
|6 Powerwall Batteries||$53,500||$37,450|
|7 Powerwall Batteries||$62,000||$43,400|
|8 Powerwall Batteries||$70,500||$49,350|
|9 Powerwall Batteries||$79,000||$55,300|
|10 Powerwall Batteries||$87,500||$61,250|
In August 2022 Congress passed an extension of the ITC, raising it from 26% to 30%. This extension will last from 2022 – 2032.
Is A Tesla Powerwall Worth The Money?
To establish whether the Tesla Powerwall is worth the money, we need to put it up against some of its competitors.
Below we’ve created a comparison table indicating total unit price, LCOS, and warranty incentives. You’ll have a clearer idea of which option gives you the best value for money by doing this.
|Tesla Powerwall||$12,500||$0.25||10 Years|
|Alpha ESS – Smile 5||$7,700||$0.16||10 Years|
|Fortress Power eVault||$15,300||$0.23||10 Years|
|LGE ESS Home||$12,000||$0.35||10 Years|
|SONNEN Core||$12,500||$0.34||10 Years|
|Simpliphi Access||$21,375||$0.38||10 Years|
Based on our above comparisons, all ESS systems have a warranty of 10 years. When considering our LCOS, we can see that the Tesla Powerwall comes in at 3rd place amongst its competitors.
- Alpha ESS – Smile 5
- Fortress Power eVault
- Tesla Powerwall
- SONNEN Core
- LGE ESS Home
- Simpliphi Access
However, Tesla undoubtedly has the most extensive service area (globally) amongst its competitors, which may further influence your purchasing decision.
There’s no point buying an ESS that you cannot install at home; with Tesla, you run the lowest chance of this happening.
So Is The Tesla Powerwall Worth The Cost?
We do believe that the Powerwall is a smart addition to your home’s overall electric system and that it’s worth the cost. We see 3 distinct advantages to this energy storage solution:
- A reliable source of electricity by acting as a back-up power in case of power outage (13.5kWh).
- Enables solar energy self-consumption for partial or full off-the-grid home.
- Time-based control energy consumption (self-consumption during electricity peak-hours).
Does a Tesla Powerwall Save You Money?
As of June 2022, the average U.S. electricity cost is $0.15 per kWh. Comparing this to Tesla’s Powerwall LCOS, we can see that using a Powerwall will cost you about $0.16 more per kWh.
However, Tesla’s LCOS is still cheaper than the cost of electricity in Hawaii ($0.44 per kWh).
As a result, Powerwalls are not commonly bought by homeowners to save money but rather because they live in areas that experience frequent power outages.
Investing in a Powerwall for these circumstances would save headaches rather than money.
Alternatively, they are also bought by homeowners looking to rely less on fossil fuels and more on their home’s renewable energy source.
Tesla Powerwall Payback Period
As previously discussed, a Tesla Powerwall is unlikely to save you money (unless you live in Hawaii). Therefore, working out a Tesla Powerwalls payback period is next to impossible.
However, we’re able to figure out the payback period of both a Tesla Powerwall and their solar system combined.
Let’s Do Some Maths
We’ll assume you live in California and spend about $115 a month on electricity for our assessment.
According to Tesla, in conjunction with the amount of peak sun hours California experiences, this sort of energy consumption will require that you install a 4.80 kW solar system with 1 Tesla Powerwall. This should allow for 2 days of winter/cloudy day autononmy.
- 4.8 kW Solar Panels: $12,096
- 13.5kWh Tesla Powerwall: $12,500
- Tax Incentive: $7,378
$12,500 + $12,096 = $24,596
$24,596 – $5,860 = $17,218
Seeing as the above-mentioned solar system will offset approximately 102% of your energy consumption, you’ll be saving $115 every month.
Therefore: $17,218 / $115 = 149 months.
It will take 12 years for your Tesla Powerwall/solar system to make a return on investment.
Now, remember this assumes you live in California and only require a 4.8kW solar system.
If you live in a less sunny location or without a solar tax incentive, it will take you much longer to pay it off because your initial investment will be much more significant.
We hope this article sheds some more light on the actual cost of a Tesla Powerwall; this way, you know what you are getting yourself into before going ahead with the actual purchase.
If you feel that the Tesla Powerwall costs too much, you can also take a loan from Tesla.
To do this, you’ll need to make a minimum down payment of 10% of the total cost of your system.
In our above example, this would amount to you paying $2,360 upfront and then an additional $229 each month for a total of 10 years, bringing your total costs up to $29,840 (an extra $12,620).
Please feel free to ask any questions you have in the comments section below, and one of our solar experts will respond as soon as possible.