Tesla Battery + Solar

Significantly Cheaper than Grid Power

In November 2016, our analysis shows that a Tesla Powerwall and a 5kW rooftop solar system could deliver electricity around the same price as grid power. Our latest estimate shows solar and storage is now significantly cheaper.

In late 2016 Tesla launched the Powerwall 2, halving the price of storage relative to Powerwall 1. The combination of 5 kW PV plus Tesla Powerwall 2 plus grid is now significantly cheaper than the average price achieved from grid-only supply even if all the discounts in the grid offers are assumed to be met. The writing was on the wall for grid-only supply 14 months ago and while we expected the gap between grid only and PV+battery+grid would grow larger, this is happening more quickly than we imagined. The price of 5kW PV has fallen considerably from $7,318 to $5,500

The results of the analysis are shown in Chart 1 below, which shows that for these assumptions, households are typically better off installing 5 kW solar and a battery rather than relying on grid only supply.

Tesla Powerwall 2 plus 5 kV PV plus grid versus grid-only in Adelaide in November 2016

Tesla Powerwall 2 plus 5 kV PV plus grid versus grid-only in Adelaide in February 2018

The difference between Chart 1 and Chart 2, over just 14 months, is remarkable. The writing was on the wall for grid-only supply 14 months ago and while we expected the gap between grid only and PV+battery+grid would grow larger, this is happening more quickly than we imagined.