Tesla has officially launched the 3rd generation of their home battery storage product, Powerwall in Australia an New Zealand.
Powerwall 3 can store solar or grid energy for use later in the day, when the sun goes down or when the electricity prices are high. This can help reduce electricity bills, and power homes during a grid outage. The Tesla Powerwall can be monitored and managed through the Tesla mobile app.
Tesla first introduced the Powerwall 1 back in 2015, which was followed up with the more popular Powerwall 2 in 2017. Tesla has confirmed they have sold more than 700,000 Powerwalls globally but has big plans for the Powerwall 3, with a design that is easier to install.
Powerwall 3 supports up to 20 kW DC of solar and providing up to 11.04 kW AC of continuous power per unit. It has the ability to store up to 13.5 kWh of energy and start heavy loads rated up to 185 A LRA, meaning a single Powerwall 3 can support the power needs of most homes.
Those with Powerwalls can also enroll in Tesla’s Virtual Power Plant. This is a virtual network of storage that combines the energy stored in multiple Powerwalls for a neighbourhood and distributes excess power to your neighbours at a cheaper rate than offered by the grid. When energy from your Powerwall is used, you earn electricity credits, lowering your energy bills. Tesla commits to a limit of 50 Powerwall discharge cycles per year, while always leaving you with at least 20%.
While the Powerwall typically includes 10 years warranty, Tesla is confident enough with the battery longevity to extend the warranty to 15 years for those who enroll in the VPP.
Further savings can be unlocked through Time-Based Control mode, this feature allows owners on a Time of Use electricity rate plan to set their Powerwall to maximise their savings. Powerwall optimises its behaviour to charge from the grid when prices are low and uses cheaper energy stored in Powerwall to avoid high electricity prices during peak times.
Tesla claims that Australian homeowners can save up to an average of 77% per year on their electricity bills with Powerwall 3 and solar when connected to a Virtual Power Plant.
This estimate is based on the average Powerwall customer with solar and one Powerwall on a Time of Use Electricity Rate Plan connected to a VPP. Actual savings depend on location and specific energy demands per household. Future electricity rates are estimates only and may vary on the type of energy plan the customer is connected to.
Powerwall 3 also has the added benefit of backup protection. It automatically detects outages and becomes the home’s energy source when the grid goes down. When severe weather is forecast, the Storm Watch feature managed within the Tesla app will automatically charge Powerwall 3 to its maximum capacity to prepare for an outage, keeping the home and appliances powered, providing peace of mind and energy security.
More power. More efficiency. More backup.
Powerwall 3 boasts more than double the power output of Powerwall 2, providing the flexibility to power any sized home. The inverter can output up to 10 kW depending on local conditions, enabling further savings by powering a greater variety of appliances.
With a built-in solar inverter, Powerwall 3 has greater power efficiency, creates a cleaner-looking install with fewer boxes on the wall and reduces the need to purchase a third-party solar inverter – this allows for easier and more cost-effective installations for owners.
The new Powerwall 3 features a more industrial design, with aluminum sides, however the front face (most visible) does still feature a glossy front face, with an illuminated Tesla logo.
Powerwall 3 can be installed in either indoor or outdoor locations, and features a redesigned thermal management system, and is happy operating in temperatures ranging from –20°C to 50°C, perfect for the Australian climate.
Thanks to its robust design, the Powerwall 3 can withstanding extreme weather conditions and maintaining normal operation in high humidity and flooding in up to 60 cm of water.
Ecosystem efficiencies
Fully integrated in the Tesla product ecosystem, Powerwall can be managed via the Tesla App with users able to monitor and control their system to best suit their needs, providing them with the flexibility if their energy requirements change over time.
When used with Tesla vehicles, Powerwall unlocks more charging features such as Charge on Solar. This additional feature gives Tesla owners, equipped with Powerwall and solar, the ability to charge using excess energy produced by their solar system. Off-grid charging is also made possible, further lowering the cost of home charging with sustainable energy.
Price and Availability
From today (Friday 16 August 2024), Powerwall 3 is available to order in Australia & New Zealand.
The 1x Powerwall 3 costs A$11,900, this also requires a Gateway that costs an additional $1,700. The A$13,600 includes GST, but does not include the cost of installation or delivery.
If you’re chasing a larger installation, perhaps to pair with a larger solar system, you can purchase up to 3 Powerwalls for A$35,700, which is a straight multiple of the individual cost (note: still requires just 1 Gateway.
With the battery chemistry in Powerwall 3 changing to LFP batteries – lithium iron phosphate (LiFePO4), many of us expected the cost would be much more affordable than Powerwall 2. Unfortunately that hasn’t occurred, with the price actually increasing slightly.
Internationally, Tesla’s energy business is going well with high demand for Powerwall and Megapack products, so perhaps Tesla don’t feel like they need to drop the price for now as production continues to ramp.
Australia is country with one of the highest rooftop solar distributions with somewhere between 1/4 to 1-3 of all homes now having rooftop solar.
Many home owners add solar to reduce their energy bills and with a dramatic reduction in the cost of solar, and rising energy prices from the grid, the return on investment for solar can be just a few years.
Man considering a battery will do the maths for ROI and won’t be able to make that make sense. Personally we spend in the order of $1,800 per year on energy to power a home with 2x EVs in the garage. Let’s imagine a total cost of A$15,000 to have a Powerwall 3 installed, this would mean we’d need to wait 8.8 years to be ahead (assuming a static cost of power). With a warranty of 10 years, this is a really challenging equation to make work.
If the Powerwall 3 was 8k, that drops to just 4.7 years, a timeframe that I think many would go for. With state incentives like interest free loans, Tesla could dominate the Australian market if they are able to reduce the price.
To learn more about Powerwall 3 or to order one, head to tesla.com/en_au/powerwall