Tesla Powerwall battery: how much does it cost, and is it worth it?
Updated
The Tesla Powerwall+ is a sleek, high-tech energy storage solution for homeowners that want to install batteries. Image courtesy of Tesla, Inc.
Tesla has been in the battery game since its launch of the Powerwall battery in 2015. Since then, over 250,000 Powerwalls have been installed globally - and for a good reason. The Tesla Powerwall is a great battery with great operating features. In fact, we named the Tesla Powerwall this year’s best energy storage solution.
Unfortunately, solar batteries are expensive, and the Tesla Powerwall is no exception. With installations over the $10,000 mark, you’re probably wondering if a Powerwall is really worth the cost. The answer isn’t as cut and dry as you might think.
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- The Tesla Powerwall is a 13.5 kWh home battery storage system that costs between $9,200 and $18,000, depending on where you buy it from.
- Tesla’s Powerwall Direct option lets you buy just a Powerwall battery starting at $9,200 before installation costs. After installation and delivery fees, this price could be closer to $13,000.
- Powerwalls purchased through Tesla with a solar panel or solar roof system will cost about $11,500, including installation.
- Local installers may carry Powerwalls but likely charge higher prices of about $15,000, with some quotes reaching as high as $18,000.
- Tesla Powerwalls can save you additional money on your electricity bill if your utility has Time of Use rates or does not have a solar net metering program.
- One Tesla Powerwall can run small loads and 120-volt appliances like a refrigerator for over a day during a power outage. More than one Powerwall is needed for whole-home backup.
How much does the Tesla Powerwall cost in 2023?
The price of a Tesla Powerwall depends on where and how you buy it - it can range from $9,200 to over $18,000.
Tesla released Powerwall Direct, which allows you to buy a standalone Powerwall right from Tesla’s website. The cost for one battery through Powerwall Direct is $9,200. Two Powerwalls will cost you $17,200, while three will cost $25,200. There’s also a $200 delivery fee. Prices may be lower if you are adding to an existing Powerall system.
These prices don’t include installation. When you find an installer to hook up the Powerwall, you’ll have to pay them for the labor, which will probably be at least $3,000, putting the total price closer to $13,000.
You can also get a Tesla Powerwall through Tesla by pairing it with a Tesla solar panel or solar roof system, which costs $11,500. This price includes installing the battery with your solar system.
You can also purchase a Tesla Powerwall from a local certified Tesla installer. This will likely be the most expensive option, with the average price sitting around $15,000, with some people reporting quotes near the $18,000 mark. However, choosing a local installer usually means better customer service.
Keep an eye out for additional charges. Some additional charges may come with installing the Powerwall, even when you get it from Tesla. For example, Tesla or your installer may require you to upgrade your electrical panel, which can add $2,500 to your installation costs!
Does the Tesla Powerwall qualify for incentives or rebates?
Yes, the Tesla Powerwall does qualify for the battery storage incentives available in the U.S.
The biggest incentive is the federal solar tax credit, which will reduce the cost of a Powerwall installation by 30%. So, if you were charged $11,500 for installing a Powerwall, you would get a $3,450 tax credit from the federal government.
Aside from the federal tax credit, some states and utilities offer additional rebates and incentives. In some cases, rebates like California’s SGIP incentive and Green Mountain Power’s Bring Your Own Device Program in Vermont can cover almost 90% of the total cost of installing a Powerwall.
Does a Tesla Powerwall save money on your electricity bills?
A Tesla Powerwall can save money on electricity bills if your utility uses Time of Use rates. With Time of Use rates, the price of electricity varies depending on the time of day. Rates are highest during peak periods and lowest during off-peak periods.
When you have a Tesla Powerwall, you can charge during off-peak periods, either with solar or from the grid if your utility allows. Then, you can use that stored energy to power your home later in the day and avoid expensive peak prices. This will technically save you money, but the savings will be minimal unless peak prices are much higher than off-peak prices.
Batteries can also save you additional money if you have solar and your utility doesn’t buy solar power for the full retail rate of electricity. Similar to how it works with Time of Use rates, you can store your excess solar power and use it later instead of sending it to the grid for a lower price. This way, you get the full value of your extra solar electricity.
But if your utility doesn’t use Time of Use rates or offers full retail net metering, then a Tesla Powerwall won’t save you money on your electricity bills.
How to order a Tesla Powerwall
There are three ways you can get a Tesla Powerwall:
- Ordering a battery through Powerwall Direct
- Purchasing one through Tesla with a solar system
- Getting a Powerwall through a certified installer
Powerwall Direct
Despite the name, ordering a Tesla battery through Powerwall Direct isn’t actually all that straightforward. Just order it on the website - right? It’s actually a little more complicated than that.
The first thing you will want to do is make sure you can get a Powerwall delivered to you, as Powerwall Direct is only available in select markets. We wish Tesla posted a list of these markets, but they don’t. So how do you find out? You have to use Tesla’s Powerwall Direct ordering form.
When you enter your address, you’ll be brought to a page where you can select how many Powerwall batteries you want to order and how much they’ll cost. Read this page carefully! If Powerwall Direct is not available in your area, you’ll see a notification at the top of the page that looks like this:
So now you know if you’re in Tesla’s service territory. If you’re not, you can still enter your contact information to be notified if Powerwall Direct ever comes to your area. If you can order through Powerwall Direct right now, there are a few more things you need to do before you order.
As we said earlier, ordering through Powerwall Direct just sends the battery to your house and doesn’t include anything like installation, permitting, or inspections. So before you click submit, you should get in contact with a Tesla Certified installer in your area.
If you find an installer willing to do the project, you can talk with them about the cost, possible site inspections, design, and installation of a Powerwall. Now that you’ve found an installer, you’re on to the easy part. Return to Tesla’s order page, enter your address, select the right options, and order!
It’s unclear how long delivery times are for Powerwall Direct.
Purchasing a Powerwall with a Tesla solar system
This option is a little more straightforward. All you have to do is go to Tesla’s website, enter your address and electricity bill, and then place your order. Tesla will follow up with you to organize inspections and finalize the system design, and then you just have to wait for the installation.
Getting your Powerwall this way takes out a lot of the work for you - the installation is included in the price, and you don’t have to find your own installer to complete the job. But remember, if you’re ordering this way, you’re getting a whole solar system. If you already have solar or don’t want solar, this option won’t work for you.
However, be warned that the price that Tesla’s estimator shows when you order may not be what you end up paying. Some things may change depending on the design that works best for your home.
Depending on the final system design and location, you could wait a while for that installation to happen. Some people report waiting longer than eight months from when they ordered to when their solar installation happened.
Buying a Powerwall through a local installer
Even though the Powerwall is a Tesla product, you don’t have to buy one on Tesla’s website. If you find a local installer in your area that carries Powerwalls, you can get the battery and the installation right from them. You already have to find a certified contractor to install one that you order through Powerwall Direct - so why not just do it all at once?
Granted, it may be difficult to find a solar installer that has Powerwalls on hand to install. But it’s worth a shot trying to find out. If there is one, you could get your batteries installed much sooner. Keep in mind that the price of a Powerwall through a local installer may be higher than what Tesla is charging. Most Powerwall installs through local installers seem to sit around $15,000 but may go up to as high as $18,000.
What’s the best way to buy a Powerwall?
The bottom line is that it depends on what your needs are. But we recommend at least checking around with local installers in your area to get some quotes and see what they have available.
Ordering through a website may seem easy, but if you just want the battery through Powerwall Direct, you will have to find installers near you. You may as well find out what else they’re offering or if they have their own set of Powerwalls in stock and compare it to what Tesla’s offering regarding the total price and wait times.
If you want solar panels, too, then we really recommend going with a local installer. Tesla isn’t exactly known for having the best customer service, so going with a company near you will probably lead to a better solar experience. The price tag may be slightly higher than what Tesla’s charging, but you get what you pay for. Local installers tend to provide better support over the 25-year life of the system.
Powerwalls have long wait times. We said Powerwalls were popular. They’re so popular that Tesla can’t quite keep up with demand. There are some reports that people have waited almost two years for their Powerwall installation to happen. So, if your installer doesn’t have them in stock, or if you choose to go with Tesla, be prepared to wait for your batteries to get installed.
But, the opening of Powerwall Direct may be a signal that wait times could be getting shorter. Either demand for Powerwalls has dropped enough that Tesla decided they can offer the standalone ordering option, or Tesla has actually ramped up production of Powerwalls to meet demand. That could mean shorter wait times, but we won’t hold our breath.
Can a Powerwall backup an entire house?
The number of Powerwalls you install determines how many appliances you can back up during a power outage. Image courtesy of Tesla, Inc.
One of the biggest advantages of installing a Powerwall is having backup power if the grid goes down. But, one Powerwall won’t be able to run all of the appliances in your house when the power is out. Instead, you’ll choose your most important electrical loads, like your refrigerator, lights, WiFi, and outlets, for the Powerwall to backup.
If you’re interested in whole home backup, you’ll have to install multiple Powerwall batteries. If that’s in your budget, go for it! It’s up to you to decide if running power-hungry loads like an air conditioner and a well pump during a blackout is worth the extra thousands of dollars to install more Powerwalls.
Finding the right size battery system to meet your needs is another thing that a solar installer can help you with. They’ll have insight into the most cost-effective solution and how many batteries you’ll need to run some or all of your appliances.
Key features of the Tesla Powerwall
You can hear more about what we like about the Tesla Powerwall’s features from SolarReviews founder and Powerwall owner Andy Sendy in this video:
The Tesla Powerwall has some great specifications and some of the most impressive smart monitoring and management software in the solar battery game.
| Feature | Tesla Powerwall+ specification | Powerwall 2 |
| Usable energy capacity | 13.5 kWh | 13.5 kWh |
| Continuous power rating | On-grid: 7.6 kW full sun/5.8 kW no sun, Off-grid: 9.6 kW full sun/7 kW no sun | 5.8 kW |
| Peak power rating | Off-grid: 22 kW full sun/10 kW no sun | 7 kW |
| Round trip efficiency | 90% | 90% |
| Depth of discharge | 100% | 100% |
| Dimensions | 62.8 in x 29.7 in x 6.3 in | 45.3 in x 29.6 in x 5.75 in |
| Weight | 343.9 lbs | 251.3 lbs |
| Operating modes | Solar Self-Consumption, Time-Based Control, Backup Power | Solar Self-Consumption, Time-Based Control, Backup Power |
Capacity
A battery’s capacity tells you how much electricity it can store. The higher the capacity, the longer the battery can power your home. With the ability to hold 13.5 kilowatt-hours (kWh) of electricity, the Powerwall can store enough energy to cover about half of the average American home’s daily energy usage.
With one charge, a Powerwall can likely run the essentials in your home, like your refrigerator, WiFi, some outlets, and a few lights, for about 24 hours.
Continuous power rating
The release of the Powerwall+ brought one major change: a higher power rating. The continuous power rating of a battery tells you what and how many appliances it can run.
Powerwall+ batteries connected to the grid can now deliver 7.6 kW of continuous power when the sun is shining and 5.6 kW with no sun.
The Powerwall+ can release enough power to run lights, electrical outlets, and 120-volt appliances like your fridge. If you want to run high-powered appliances, such as an air conditioner, you’ll need additional Powerwalls.
Your Powerwall+ will be able to release more power when it’s operating off-grid, ranging between 7 kW and 9.6 kW of output, depending on weather conditions. So, when the Powerwall is not connected to the grid, like during a power outage, it can run a few more appliances in your home.
Peak power rating
Aside from the continuous power rating, batteries also have a peak power rating, which is the maximum amount of power a battery can deliver in a short amount of time (usually about 10 seconds). The peak power rating measures the battery's ability to withstand brief power surges, like when appliances draw extra power to turn on.
No on-grid peak power rating is listed for the Powerwall+, but when operating off-grid, the peak power ranges from 10 kW to a whopping 22 kW if the sun is shining.
These numbers are substantially higher than the industry average for peak power rating, usually around 7 kW of output. However, you’ll only be able to unlock the full potential if you have at least a 12 kW solar system. Without solar, it’ll probably be closer to the 7 kW peak power rating of the Powerwall 2.
Operating modes
The Powerwall has three main operating modes:
- Backup reserve, which sets aside a portion or all of the energy stored in your battery to be used during a blackout.
- Self-powered mode stores solar power your home doesn’t need during the day for use later. This increases the amount of solar energy your home uses and can save you a little bit of extra money on utility bills, depending on rates in your area.
- Time-Based Control mode gives you more control over when your battery charges and discharges. You can optimize the charging schedule to save more money on electricity bills if your utility uses time-of-use rates.
You’ll probably use one of these three operating modes, But, Powerwall does have additional modes to fit every situation. Energy Export mode lets you send power from your Powerwall to the electrical grid to earn credits if your utility allows it. You can also use the Advance Settings option to control how much power your solar panels send to the grid versus how much they send to your battery.
A Preconditioning setting also helps the battery operate better in cold temperatures.
Lifespan and warranty
The Powerwall comes with a great warranty, but the exact terms of the warranty vary depending on what operating modes you use.
The language in Tesla’s warranty can be a bit confusing because it uses older names for the operating modes. But, it seems that if you use a combination of the backup reserve, self-powered, and time-based control modes, you get an unlimited cycle warranty that guarantees the battery will operate at least at 70% capacity after 10 years.
If you use any other applications, the Powerwall will operate at 70% capacity after 10 years or after it has released 37.8 megawatt-hours (MWh) of AC electricity, whichever comes first. Basically, this means that if you completely discharge your Powerwall every day, your warranty period will be shortened to roughly 7.5 years as opposed to 10 years.
The specifics of how your usage impacts the battery life are outlined in Tesla’s warranty.
Your Powerwall will probably last longer than its warranty! Even though the Powerwal is only warrantied for ten years, that doesn’t mean you need to get rid of it after a decade. The warranty means that the company can’t guarantee how fast the battery’s retention will drop after the ten-year mark. You could likely keep using your battery for another five or even ten years!
AC-coupled
The Tesla Powerwall is an AC-coupled battery that comes with its own integrated inverter, making it easy to connect to existing solar panel systems. If something goes wrong with your solar inverter, your battery will keep working, and vice versa.
AC-coupled battery systems are a little less efficient than DC batteries, and having additional hardware means more parts can potentially fail. Ultimately, both AC and DC batteries make great choices for solar storage; the right one for you simply depends on your needs.
Is the Tesla Powerwall worth it?
We think the Tesla Powerwall is a great battery. It has advanced features and impressive technical specs, all for a (potentially) great price. If it’s worth it is totally up to you and depends on why you want a battery and if you’re willing to wait over a year.
The peace of mind you get by having a Powerwall as a backup power source can be totally worthwhile if you live somewhere that experiences frequent blackouts, like California and Texas. Powerwalls also can potentially save you money on your electricity bills, especially if you live somewhere with Time of Use rates with very high peak power prices.
But, if your power isn’t going out regularly or your utility offers full-retail net metering, a battery won’t be as beneficial to you. Instead, it will add thousands of dollars to a solar installation without saving you additional money or really getting much use.
As previously mentioned, if you decide to purchase a Tesla Powerwall, we suggest getting quotes from local installers to compare it to Tesla’s offerings. While it may be more expensive than using Tesla, you’ll likely get better customer service not just during the installation process but over the system’s lifetime too.
A solar company in your area will be able to provide you with the high-quality support you need for such a large investment.
Catherine Lane
Written Content Manager
Catherine is the Written Content Manager at SolarReviews. She has been researching and writing about the residential solar industry for four years. Her work has appeared in Solar Today Magazine and Solar Builder Magazine, and has been cited by publications like Forbes and Bloomberg.