How Much Does a Tesla Powerwall Cost in 2024? And Is It Really Worth It?

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How much does the Tesla Powerwall cost in 2024?

According to Tesla’s website, a Tesla Powerwall costs about $16,800 to install before incentives, depending on where you live. This is lower than the cost of most solar battery systems—you’ll be hard-pressed to find lithium-ion home backup storage cheaper than Tesla.

The following table breaks down the estimated cost of a Tesla Powerwall 3 installation, based on quotes we’ve gotten through Tesla’s website:

Tesla Powerwall system equipment	Cost
1 Powerwall battery	$8,200
Gateway	$900
Accessories	$200
Tesla installation	$7,500
Estimated Powerwall installation cost	$16,800

Exactly how much a Tesla Powerwall system costs depends on several factors, such as the number of batteries you install, the installer you choose, and the incentives you qualify for. 

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How many Tesla Powerwalls you install

Most homeowners will need between one and two Powerwall batteries to run essential appliances during a power outage. In October 2024, Tesla started selling its Powerwall expansion units, which can be paired with a Powerwall 3 to increase storage capacity. 

The Powerwall 3 expansion units are cheaper than the Powerwall 3, costing about $6,000 each. Why are Powerwall 3 expansion units cheaper? Because they don’t include an inverter. They also make it easier to install multiple Powerwalls, reducing installation times by about half, and lowering labor costs. 

Up to four Tesla Powerwall 3 units can be installed together, one Powerwall 3 and three expansion modules. If you need more than four batteries, you’ll need to get another Powerwall 3. 

All Tesla Powerwall systems need to be installed with a Gateway and the necessary accessories to properly integrate with your home, the grid, and Tesla’s monitoring system. Each Powerwall Gateway costs $900, while Powerwall accessories cost $200.

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Tesla Powerwall installation and labor costs

The installation and labor costs for a Tesla Powerwall will vary depending on the installer you choose. We estimate the installation cost is approximately $7,500 for a single Powerwall based on historical and current quotes from Tesla, with slightly higher costs in some markets. 

If you choose a local solar company for the Powerwall installation, the cost will be similar, possibly slightly higher, depending on labor rates in your area. It's important to note that Tesla requires Powerwalls to be installed by Certified Tesla installers, so ensure that the company you choose is part of Tesla’s network to avoid voiding the warranty.

Installation costs can also vary with the design of your system. Some homes may require electrical upgrades and the addition of a backup loads sub-panel, which can add $2,000 or so to the total cost of a Powerwall installation.

However, Tesla does have a new piece of equipment called the Backup Switch which eliminates the need for a sub-panel. Tesla claims the Backup Switch can reduce installation time by six hours and cut down on the amount of equipment needed, potentially saving thousands of dollars on a Powerwall installation! The Backup Switch is only approved for use by select utilities in certain states.

Permitting and inspection requirements may also inflate the cost — like labor rates, permitting costs vary widely by location.

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Tesla Powerwall long-term maintenance and replacement costs

Solar batteries like the Tesla Powerwall require minimal maintenance, resulting in low upkeep costs. If any issues arise with your battery system, any Powerwall repair and replacement costs will likely be covered by warranty. But, fully replacing a Tesla Powerwall battery will cost about $10,000, just about the same price as the initial installation. 

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Are there incentives or rebates to lower Tesla Powerwall costs?

Yes, several solar battery storage rebates and incentives are available that can reduce the price of a Tesla Powerwall installation. 

The biggest incentive is the 30% federal solar tax credit, which can save thousands of dollars on energy storage systems like the Tesla Powerwall. A $16,800 Powerwall system would earn a $5,040 tax credit!

The following table outlines estimates how much different-sized Tesla Powerwall installations would cost after the federal tax credit: 

Number of Powerwalls	Powerwall system cost	Powerwall system cost after tax credit
1	$16,800	$11,760
2	$22,700	$15,890
3	$28,600	$20.020
4	$34,500	$24,150

There are also a variety of local and state rebates that can help reduce battery costs. One thing to keep an eye out for is virtual power plant (VPP) programs, which allow utilities to pay for access to homeowners’ batteries to reduce stress on the grid. Tesla is eligible for several VPP programs, and some of them earn Powerwall owners hundreds of dollars a month! 

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How to order the Tesla Powerwall

There are two ways to purchase a Tesla Powerwall: 

1. Order a Powerwall from Tesla’s website: You can put a request to be contacted by a Tesla Certified Installer on Tesla’s website. 

2. Purchasing a Powerwall from a local Certified Installer: You can do your own research to find Powerwall installers in your area instead of going through Tesla. SolarReviews can help you find qualified contractors in your area. 

Tesla Powerwalls have had significant wait times in the past, and some markets do experience delays. These issues are not nearly as significant today. 

However, you will have to wait for design plans and permitting to be finalized, which may take a few weeks. From when you order your Powerwall to when it can be used, it might take anywhere from one to six months. 

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Tesla Powerwall pros and cons

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Tesla Powerwall 3 specs and features

The Tesla Powerwall is a lithium-ion home storage battery that can be installed on its own or alongside solar panels to store energy for later use. It provides backup power during blackouts and can potentially save money on electricity bills. There are three models of the Powerwall: the Tesla Powerwall 3, the Tesla Powerwall 2, and the Tesla Powerwall+.

Powerwall model	Tesla Powerwall 3	Tesla Powerwall 2	Tesla Powerwall+
Capacity	13.5 kWh	13.5 kWh	13.5 kWh
Power output	11.5 kW	5 kW	7.6 kW
Weight	287 lbs	251 lbs	343.9 lbs
Warranty	70% capacity after 10 years	70% capacity after 10 years	70% capacity after 10 years
Solar inverter	Included	Not included	Included
Solar inputs	6	x	4
Scalable	Up to 4 units	Up to 10 units	Up to 4 units

Powerwall 3 is the newest Tesla home battery for sale. The built-in hybrid solar inverter is the most significant difference between the Powerwall 3 and its predecessors. The Powerwall 3 unit has six solar inputs, allowing it to pair with large solar systems up to 20 kilowatts (kW) in size. It also has an impressive continuous power output of 11.5 kW to run even the most power-hungry appliances. 

The Powerwall 3 is best for homeowners installing new solar panel systems, especially if that system is large. Because of its high power output, it’s also a great battery storage option for homeowners who want to run power-hungry appliances like an air conditioner or sump pump. 

Here are some of the new features of the Powerwall 3 that homeowners should know.

Cost

The Tesla Powerwall 3 is slightly more expensive than the Powerwall 2 because it includes the cost of a solar inverter. However, the Powerwall 3 expansion units help lower the total price of larger Powerwall battery installations.

Built-in solar inverter

The Tesla Powerwall 3 has a hybrid inverter integrated into the battery system, which allows the Powerwall 3 to pair with larger solar systems than its predecessor. It also makes it more powerful. It is ideal for installing along side new solar installations.

Higher power output

The Tesla Powerwall 3 has a continuous output rating of 11.5 kW, compared to the Powerwall 2's 5.8 kW output. That's almost double the amount of output! With a higher power output, you can run more appliances.

Lithium iron phosphate chemistry

The new Powerwall 3 uses lithium iron phosphate battery cells, which are safer and less toxic than those used in the Powerwall 2.

Limited stacking

You can install up to four Tesla Powerwall 3s together for a total capacity of 54 kWh. A Powerwall 2 system can have up to 10 batteries for a whopping 135 kWh of capacity.

Most homeowners don't need a system of that size, but if you need a lot of storage, a Powerwall 2 might be better for you.

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Tesla Powerwall warranty

The Tesla Powerwall comes with a 10-year warranty that guarantees the battery will maintain at least 70% capacity at the end of the warranty period. The unlimited cycle warranty applies only if the battery is used for solar self-consumption, time-based control, and backup reserve. The warranty is based on a 100% depth of discharge (DoD), meaning the battery can be fully discharged without damage. 

If the Powerwall is used with any other application or combination of applications, the battery is only guaranteed to operate at 70% after the earlier ten years or 37.8 MWh of throughput. It’s unclear if this means using Powerwall modes such as energy exports or altering advanced settings will shorten the warrantied lifespan.  

Tesla’s home battery warranty is pretty standard for battery storage, and the backing by a large company makes us confident that Tesla should be around to honor any warranty claims made in its warranty life. 

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How many Tesla Powerwalls do I need?

The number of Tesla Powerwalls you need depends on a few factors, but most homeowners only need one or two Powerwalls to keep their essential appliances running off-grid during an outage. 

The following table describes the backup duration of different-sized Powerwall systems with and without solar for an average home:

Number of Powerwalls	Backup duration with solar	Backup duration without solar
1	7 - 14 hours	9 - 12 hours
2	14 - 24 hours	17 - 24 hours
3	21 hours - 2 days	1 - 1.5 days
4	1 - 2.5 days	1.5 - 2 days
5	1.5 - 3 days	2 - 2.5 days
6	2 - 3.5 days	2 - 3 days

If you’re looking for whole-home backup, you’ll need to install six or more Powerwalls. But, if you’re fine with keeping your fridge, lights, and TV on for a few hours, one or two Powerwalls are more than enough. 

The number of Powerwalls you need also depends on the appliances you’re looking to run. Electrical loads like air conditioners and clothing dryers are power intensive and will quickly drain your batteries’ capacity, meaning you would need more batteries to run these loads for prolonged periods. 

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Tesla Powerwall vs. competitors

The Powerwall is a top solar battery, but there are plenty of Tesla Powerwall alternatives that may be a better choice for you. The following table outlines some other solar batteries on the market compared to the Tesla Powerall 3:

Model	Tesla Powerwall 3	Enphase IQ 5P	Panasonic EverVolt Home Battery	sonnenCore+ 10
Est. price per kWh	$866	$1,600	$1,185	$1,300
Battery capacity	13.5 kWh	5 kWh	13.5 kWh	10 kWh
Power output	11.5 kW	3.84 kW	7.6 kW	4.8 kW
Warranty	70% capacity after 10 years	60% capacity after 15 years	70% capacity after 12 years	70% capacity after 10 years
Round trip efficiency	89%	90%	89%	86%
Expandability	Yes, double size only	Yes, 5 kWh increments	Yes, 4.5 kWh increments	Yes, double size only

The Tesla Powerwall 3 costs $866 per kWh of storage capacity, making it one of the best home batteries in value. At 13.5 kWh, the Powerwall offers enough energy capacity for most homeowners. Tesla has been in the battery game since 2015, so the Powerwall has a proven track record of great performance. 

However, Tesla’s warranty terms are falling behind those of some of its competitors. Top brands like Panasonic and Enphase have been offering warranty protection on their battery products for over ten years. 

Also, Tesla batteries aren’t as flexible regarding system design and sizing. The Panasonic EverVolt battery is modular so you can get just the right amount of storage for your energy consumption needs. With the Powerwall, you need to double the size of your battery if you need more than 13.5 kWh. 

If you’re looking for a relatively simple energy storage solution for a low price, then a Tesla Powerwall is a great option. However, if you need more customization in the design of your system, there are better options. 

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Tesla Powerwall return on investment

An average solar panel system paired with one Tesla Powerwall battery can pay for itself in about 14 years when the tax credit is considered. Tesla Powerwalls are among the most cost-effective home batteries on the market, and they are likely to provide you with the best return on your investment.

However, the amount of savings a Powerwall can provide depends heavily on how your utility bills are calculated and local incentives. In most cases, a Tesla Powerwall won’t pay for itself and might not even offer you any financial benefits. Here are a few different ways installing a Tesla battery would impact your energy bill: 

• If you don’t have solar but are on a time of use rate schedule, a Powerwall battery could save you a small amount of money on your monthly electricity bills by charging it during off-peak hours and discharge during peak-hours. These savings would be minimal, and unless there were about a $0.30 difference between peak and off-peak rates, the savings would never pay off the cost of the battery. 

• If you have solar panels and full retail net metering, a Powerwall battery will not save you any additional money. The solar energy you produce already offsets the full cost of electricity, so the Powerwall could not add savings. 

• If you have a solar power system and don’t have full retail net metering or are on a time of use rate, a Powerwall can save you additional money, but not much. However, the combined savings from the battery and solar could still result in a payback period of 14 years, which means you would have a decade of free energy!

Even though the Powerwall is one of the most cost-effective battery solutions, the financial benefits won’t pan out for most homeowners. In places like California, where new Net Billing rules have substantially changed how solar energy is valued, a Powerwall can offer homeowners more savings and actually result in a lower solar payback period. To determine if a battery is the best financial investment for you, it's best to speak to a local solar company.

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Is the Tesla Powerwall worth the cost?

The Tesla Powerwall is worth considering if you’re interested in a battery storage system because of its low price and impressive power output. If you need backup power, are installing a brand new solar system, and want to run large appliances, you can’t get much better than the Powerwall 3.

But the Tesla Powerwall isn’t the best battery for everyone. The new Powerwall 3 isn’t suited to pair with already installed solar panels and can’t pair with microinverters. So, if your solar system is complex or might experience shading, a different battery could be better for you. However, the six solar inputs of the Powerall 3 likely mean this won’t be an issue for most homeowners. 

Also, the Tesla Powerwall might not provide everyone with financial benefits. While it can still give a good payback period when paired with solar panels, installing the Powerwall on its own in hopes of lowering your electricity bills won’t be worth it. This is probably why installers in our 2024 Solar Industry Survey found most consumers wanted to get storage for the backup power benefits, not financial ones. 

While the low prices of Tesla's solar panels and batteries are attractive, Tesla doesn’t have the best customer service reputation, which you need to consider when making a 10+ year investment in storage. But, you might avoid some of these frustrations if you get your Powerwall through a local Tesla Certified Installer, as they can be a little more hands-on during the entire process. 

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Tesla Powerwall FAQ