How much does a Tesla Powerwall cost? (Value guide)

The cost of the Tesla Powerwall has been up for debate since its release, with figures ranging in various directions.

As of November 2021, 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? Surely we have enough real-world applications to establish an accurate estimated cost?

One such reason could be that a Tesla Powerwall’s cost differs from location to location.

For this reason, we thought it necessary to conduct our own study to provide you with some further insight into the matter.

In this article, we 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.

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How much does a Tesla Powerwall cost in 2023?

As of 2023, the total cost of installing one Tesla Powerwall battery is $11,500, excluding any solar tax incentives.

The following table illustrates the price difference per number of Tesla Powerwalls purchased:

PowerwallCost
1 Powerwall Battery$11,500
2 Powerwall Batteries$18,500
3 Powerwall Batteries$25,500
4 Powerwall Batteries$32,500
5 Powerwall Batteries$40,500
6 Powerwall Batteries$48,500
7 Powerwall Batteries$56,500
8 Powerwall Batteries$64,500
9 Powerwall Batteries$72,500
10 Powerwall Batteries$80,500
Tesla Powerwall costs (including installation and excluding incentives)

The cost of a single Tesla Powerwall decreases as you add more units to your home storage system. One Powerwall will cost you $11,500, while two will set you back $18,500 ($9,250 per battery). Tesla’s tiered pricing structure continues to the largest system possible: 10 Powerwall batteries for $80,500.

Generally, your home will require a minimum of 2-4 days’ worth of power autonomy during a prolonged blackout, which depending on your electricity consumption, will require around 1-3 Tesla Powerwalls.

When establishing our Tesla Powerwall quote, we spoke with a Tesla representative who informed us that the prices listed above include installation costs.

He also mentioned that Tesla no longer sells their Powerwalls individually. You must combine your Powerwall with a Tesla solar roof or the company’s solar panels.

Tesla Powerwall cost

However, you can still purchase a Tesla Powerwall on its own via certified installation companies throughout the U.S. This helps you avoid pairing it with a new solar system.

Unfortunately, going this route means you’ll end up paying more for your Powerwall — anywhere from $12,000 to $18,000.

Related Reading: SunPower Vs. Tesla (Which brand should you choose?)

Solar Incentives

Thanks to 2023 solar tax incentives, you can expect a 30% solar tax reduction on the price of your Tesla Powerwall. This brings the cost of a single Tesla Powerwall from $11,500 down to $8,050 — a savings of $3,450.

Check out your expected costs after the tax reduction.

PowerwallCostIncl. Tax Incentives
1 Powerwall Battery$11,500 $8,050
2 Powerwall Batteries$18,500$12,950
3 Powerwall Batteries$25,500$17,850
4 Powerwall Batteries$32,500$22,750
5 Powerwall Batteries$40,500$28,350
6 Powerwall Batteries$48,500$33,950
7 Powerwall Batteries$56,500$39,550
8 Powerwall Batteries$64,500$45,150
9 Powerwall Batteries$72,500$50,750
10 Powerwall Batteries$80,500$56,350
Tesla Powerwall costs (including installation & tax incentives)

In August 2022, Congress passed an extension of the ITC, raising it from 26% to 30%. This extension will last from 2022 through to 2032.

Note to our readers: According to Solar Energy Industries Association (SEIA), for a Tesla Powerwall to qualify for the savings of the Federal Tax Credit, it must “derive 100% of its power from an onsite solar array.”


Is a Tesla Powerwall worth the money?

To establish whether the Tesla Powerwall is worth the money, you must consider its price, levelized cost of storage (LCOS), warranty and overall abilities.

Note to our readers: Levelized Cost of Storage (LCOS)  helps provide the most accurate cost estimation for an energy storage system (ESS). It does so by evaluating the total amount of energy a battery can charge/discharge over its lifetime. This value is expressed in USD/kWh.

Below we created a comparison table indicating the following:

  • Total unit price (before and after 30% tax incentive)
  • Levelized Cost of Storage (before and after 30% tax incentive)
  • Warranty period.

Doing this gives you a basic understanding of the Powerwall+’s worth. clearer idea of which option gives you the best value for money.

For the sake of this comparison, we’ll use the latest Tesla ESS model, the Powerwall+, along with its operating limit of 37.8 MWh aggregate throughput stipulated in the U.S. warranty.

ESS SystemTotal Cost
(Before Tax Incentives)
LCOS/kWh
(Before Tax Incentives)
Total Cost
(After 30% Tax Incentives)
LCOS/kWh
(After 30% Tax Incentives)
Warranty
Tesla Powerwall+$11,500$0.30/kWh $8,050$0.21/kWh10 Years

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So, is a Tesla Powerwall worth the cost?

Tesla Powerwall Alternatives

First, let’s look at this from a purely financial standpoint.

As of November 2022, the average cost of residential electricity throughout the U.S. is 15.64 cents/kWh.

Before applying the 30% tax incentive, the Tesla Powerwall+ is 14.36/kWh more expensive than the average cost of electricity in the U.S, with the exception of Hawaii (43.91 cents/kWh) and New Hampshire (30.66 cents/kWh).

However, after applying the 30% tax incentive, it’s only 5.36 cents more expensive. This makes it cheaper than the average price of electricity in 9 states, including California.

Before you start wondering about the 41 other U.S. states, keep the following in mind:

In short: Yes, a Tesla Powerwall is worth the cost.

Related reading: How To Build A DIY Powerwall (A Complete Guide)


Does a Tesla Powerwall save you money?

As previously mentioned, the average cost of residential electricity throughout the U.S. is 15.64 cents. Without the 30% solar tax incentive, the Tesla Powerwall’s LCOS,is about 14.36 cents/kWh more.

However, after applying the 30% tax incentive, it’s only 5.36 cents more expensive. This makes it cheaper than the average price of electricity in 9 states, including California.

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. Under these circumstances, investing in a Powerwall for would save you from frustration and make you more energy independent.

Additionally, they are also bought by homeowners looking to rely less on fossil fuels and more on their home’s renewable energy source.

Related reading: LG Energy Solution Vs. Tesla Powerwall (Which battery is best for you?)


Tesla Powerwall Payback Period

We were able to figure out the payback period of both a Tesla Powerwall and its combined solar system.

Let’s Do Some Maths

For our assessment, we’ll assume you live in California and spend about $115 a month on electricity.

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 one Tesla Powerwall. This should allow for 2 days of winter/cloudy day autonomy.

  • 4.8 kW Solar Panels: $12,096
  • 13.5kWh Tesla Powerwall: $12,850 (the $11,500 price tag includes Tesla solar panels)
  • Tax Incentive: $7,484

$12,096 + $12,850 = $24,946

$24,946 – $7,484 = $17,462

Seeing as the above-mentioned solar system will offset approximately 102% of your energy consumption, you’ll be saving $115 every month.

Therefore: 17,462 / $115 = 151 months

It will take 12.5 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.

Related Reading: Tesla Vs. Enphase (Which battery should you choose?)


Final thoughts

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.

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.

Kyle Browning

Kyle Browning

Kyle is a researcher and content specialist at Climatebiz. He has a strong interest in green technology, particularly in photovoltaic systems. Kyle believes in a future where everyone has affordable access to renewable energy, regardless of their race, religion, or social status. This ideology led Kyle to found Climatebiz - with the goal to provide free information for anyone, anytime. You can follow Kyle on Twitter at @kylebrwng

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Jo

Hello. I’m wondering why should we still choose Tesla Powerwall since there are Smile5 and other batteries whose Lcos is cheaper than Tesla?

Rob

I don’t know who did the math on this article. One power wall at 13.5Kwh will not even power most homes for one day. I use very little power with no central AC and just two people and we use from 24 to 28 KWH a day. Anyone who can buy one of these batteries are probably in a big home with central heating and cooling and one or two children. All this battery will do is keep the lights on. If you think you’re going to heat water, run an AC, cook food, run a freezer, fridge, and anything else you’re wrong! I have a NiFe 48Vdc 1000aH battery with a 14.4 Kw solar array and a 14.4Kw Outback FP-4 VFXR3648A-01 FLEXMAX Four power system. My battery will provide 48Kwh of power which is about 2-4 days. It also requires a charge rate of C5 which means 200amps of power for 5 hours to charge. That little 4.8Kw array is inadequate.

Deep

You still did not address the issue of using a small 4.8 kWh solar panel array, which is really important for a fair ROI comparison because if the array itself is smaller than the 13.5 kWh capacity of the Powerwall, then its not going to be economical because you’d end up using the grid most of the time to charge the Powerwall. Ideally, because Powerwall has 90% efficiency, the solar array should be at least around 15 kWh to fully charge the Powerwall on days when there is adequate amount of sunlight.

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