First unveiled in 2015, Tesla’s home battery, the Powerwall, is currently in its second generation. The second-generation upgrade was announced in October 2016 and came with a bunch of improvements over the previous version. The Powerwall 2 costs more than the previous version, but can store twice the energy and has an included inverter, which allows for easier installation. In this article, we’ll take a closer look at Tesla’s home battery system, its price, lifespan, and availability, and discuss some of Tesla’s closest competitors in this space.
The introduction of Tesla’s home battery has a lot of implications for the company and the renewable energy industry. The presentation of the upgraded Powerwall 2 coincided with the presentation of Tesla Inc (NASDAQ:TSLA)‘s latest product, solar roof tiles, which are expected to take solar rooftop installations to a new level, thanks to better aesthetics and improved durability over traditional roofing materials. For the renewable energy business, Tesla’s home battery provides a nice workaround for households in states that are eliminating so-called net metering.
Solar rooftop installations have seen a surge in popularity in the last several years amid escalated concerns about climate change. However, in 2016, the growth rate for installations in the U.S slowed to 16%, versus the average rate of 63% registered in the preceding three years. Among the reasons for the slowdown are increasing interest rates, new White House administration, and the elimination of net metering.
Until recently, most U.S states allowed residential households to sell their excess solar-generated power back to the grid at retail cost. However, utility companies have been pushing for the elimination of this incentive by arguing that it is unfair to homeowners that don’t have solar installations. With the elimination of net metering, the cost savings associated with solar rooftop installations are disappearing, which is driving demand lower (Nevada had a 92% drop in new installation permits in Q1 2016 after the state curtailed its net metering program in 2015).
Katherine Welles / Shutterstock.com
Here’s where Tesla’s home battery comes in. The battery allows storage of energy generated during the day and then powers the house in the evening, when the house requires the most energy (and obviously can’t get it from the sun). An average U.S household uses around 30 KWh of power per day. Given that one Powerwall provides 13.5 KWh of storage, this should be enough to power the house throughout most of the evening. However, Tesla’s home batteries are modular and allow several units to be installed, so technically they could power the house throughout the entire day, assuming the solar panels generate enough power.
Suggested read: 10 Biggest Problems In The World That Can Be Solved With Inventions
So, as utilities are lobbying for eliminating incentives on rooftop installations in order to prevent over-burdening of the grid and non-solar households, storage solutions like Tesla’s home battery could be a solution to the problem, so it seems like Elon Musk has got into the right market at the right time.
If you are considering acquiring a Tesla home battery, or another power storage solution, some of the most important facts you need to know are revealed on the following pages.
1. Price
Let’s start with the price, because it’s the main factor behind the decision of whether or not to buy a Powerwall. Tesla’s home battery, Powerwall 2, costs $5,500, which is higher than the $3,000 for the previous version. However, in exchange you get 13.5 KWh of storage, versus 6.4 KWh and an included inverter, which costs around $2,000 if bought separately. In addition, the new battery is easier to install, so there are some additional savings on installation costs. Tesla estimates that the cost of the Powerwall 2 should be around $1,000. In addition, most states offer tax incentives, which will further reduce the costs. Installation costs excluded, Tesla’s home battery is cheaper than its competitors’ products, as we shall see further on.
Copyright: lassedesignen / 123RF Stock Photo
2. Design and specifications
The upgraded version of Tesla’s home battery comes with a new design. It is more rectangular compared to its predecessor’s slightly rounded shape and is also flatter, with a depth of 6.1 inches. It weighs 269 pounds, which is heavier than the first model’s weight of 200 pounds. The unit can be either mounted on a wall or set on the floor, is child- and pet-friendly, safe to touch, and water- and dust-proof, which allows for both indoor and outdoor installation.
Federico Rostagno/Shutterstock.com
3. Lifespan
Because it’s a new product, the lifespan of Tesla’s home battery can be determined only theoretically. The company offers a 10-year warranty, so you can expect it to work fine for at least that long. The battery’s deterioration will depend on how many cycles it can go through. According to Tesla’s warranty terms, the Powerwall 2 will have energy retention of 70% after 10 years if used as backup and solar self-consumption.
Soonthorn Wongsaita/Shutterstock.com
4. Availability
Tesla’s home battery can be ordered in the U.S by paying a $500 deposit online. After the Powerwall 2 was announced, Tesla got many pre-orders, according to reports, so it might take awhile for the company to get to new customers. The good news is that the company has invested heavily in its Gigafactory in Nevada and expects to hit a production target of 500,000 batteries per year by the end of the decade. Tesla is also working on building other factories around the world.
beer worawut/Shutterstock.com
5. Competition
Currently, several companies offer alternatives to Tesla’s home battery. The closest product is LG’s Chem RESU battery, which has a capacity of 6 KWh and costs $4,000 or $667 per KWh, which is higher than the Powerwall 2’s $407 per KWh. Then there is Sunverge, whose small battery has a capacity of 6 KWh and costs $8,000. Sunverge also offers a large battery with 23 KWh at a price of $20,000. Another alternative is Orison, which costs $1,600, but holds only 2.2 KWh. However, Orison’s products are light and don’t require a professional electrician to install them; they come as light and flat wall panels or standing units.
ermess/Shutterstock.com
Despite the availability of a selection of alternatives, Tesla’s home battery offers the cheapest cost per KWh, even including additional costs that other products might not have and should be considered by any solar owner, especially those who’s already been hit with net metering restrictions.
Disclosure: None
