Tesla Discreetly Increases Powerwall 2 Price by $400

APR 30 2018 BY STEVEN LOVEDAY 19

It’s strange to see tech prices rise rather than drop, but Tesla’s Powerwall 2 now costs more than it did at launch.

One would think that with higher demand and decreasing battery prices, a product like the Tesla Powerwall would see a progressive price decrease. While many in the segment continue to assert that battery prices will continue to drop, others believe we may see the opposite. So, what’s the story here?

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Tesla Powerwall orders placed after February 22, 2018, will cost $5,900. This is for the 7 kW/13.5 kWh system, which was $5,500 previously. Keep in mind that customer will pay more than $5,900, due to fees, hardware, and installation. A Tesla spokesperson explained via an email to Greentech Media:

Tesla evaluates its global pricing of energy products based on various factors and continues to make improvements that will simplify homeowner experience. Powerwall continues to provide great value for customers and installers.

Back to the above information about battery prices. When the Powerwall 2 debuted, it was priced 40-percent cheaper than the first-gen system. This is what many people have come to expect.

Tesla Powerwall 2.0

As technology improves, production is streamlined, battery prices drop, and demand increases, the units become more accessible and less pricey.

There’s no information available from Tesla about the cost to build these units or what factors are impacting the price increase. So, we can’t speak to margins here.

The automaker and battery tech company has worked to pave the way for the adoption of both electric cars and home solar/battery storage units. Competition is steadily increasing, so one would think that Tesla would strive to undercut rivals.

If we look at its cars as an example, offering the best deal is really not the Tesla way. Anyone could argue that Tesla products are the best deal for what you get, but there’s no avoiding the fact that these products are for a wealthier, niche market, and come at a premium.

Even the mass-market, affordable Tesla Model 3 is far from cheap.

Hopefully, this isn’t a sign that pricing for such battery-powered new technology may not truly be on the decline in regards to pricing.

Source: Greentech Media

Categories: General

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19 Comments on "Tesla Discreetly Increases Powerwall 2 Price by $400"

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Jason
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Jason

Check out their competition, who else has a 7kW/13.5kWh system around the $6k mark? I bet there are not too many. Maybe Tesla is starting to work out how much the market can bear. Maybe the reason other EV manufacturers only make 30k-50k per year is because they have trouble getting batteries and maybe Tesla is learning that now as well? Really, it could be a whole lot of reasons, but there are no guarantees in life, so if you see something you want, at the price you can afford, go get it because it might not be there the next time you look for it.

R.S
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R.S

The LG RESU 10 is about the same cost per kWh(in Germany at least), comes w/o the inverter, but in a smaller package 10 vs 13.5.

Depending on the application both have their benefits. If you already have solar, the extra inverter doesn’t help and the bigger size makes fitting the storage to the PV harder.

If are starting from scratch, then the built in inverter is a big benefit, but you somewhat limit your PV to the capabilities of the battery. Because you just can go in relatively big steps, 4.6 kW /13.5 kWh at a time.

R.S
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R.S

Sorry, made a mistake, you apparently need a solar inverter as well, since the battery doesn’t have a DC input.

So if you need 13.5 kWh, then it’s the best. If you only need 5 kWh, then it’s definitely overkill. Since it’s the biggest out there, the cost per kWh is naturally the lowest, but not everyone needs that much home storage.

Larry4pyro
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Larry4pyro
I don’t have any experience with the LG battery but the inverter in the Powerwall 2 performs a couple useful functions. First, it allows charging from solar during the day as you point out. But it also the principle means by which the battery can provide electricity to the home when the sun isn’t out. This allows the use of solar generated power to be used at night. In my area (San Diego) the peak power period is late afternoon to midnight. The cost of that power is almost twice the off-peak, sunlight abundant hours. Without the battery the solar power would be sent to the grid. With my net metering I get credit for this power, but only at the rate applicable when it was generated, so it takes two kwh of my solar power to offset every kwh drawn off the grid. But it gets worse because I only get credit for the raw cost of power, not the fixed costs like transmission line fees, etc. are not credited so in reality I need to generate a lot more than that 2 kwh of power. The inverter in the Powerwall 2 allows me to be less dependent on… Read more »
bro1999
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bro1999

You’d figure increasing production on an item would DECREASE costs over time, no? What was changed with the Powerwall to justify the $400 increase? Or is this a simple case of “Hey, we’d like more money, let’s jack the price up because we can!” ?

Mark C
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Mark C

Supply and demand. I couldn’t even get them to return my email enquiry on buying one. They may not have anyone near Alabama that is certified to install it, though. They can’t be everywhere this early in their business model.

Recoil
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Recoil

Aren’t you the same Tesla fud that constantly complains that Tesla isn’t making any money? Now they decide to raise the price of a system that is far below the competition you are still crying? I guess when you have a bolt that all they know is how to reduce the price on a car that can’t make money to begin with you just expect prices to fall.

Pushmi-Pullyu
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Pushmi-Pullyu

Yeah, MadBro is the troll who pretends to be a EV fan and a GM fanboy, but is actually just another serial Tesla basher… as he’s showing here.

eject
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eject

The issue with the powerwall is that you need a special installer. This raises the actual price to be payed way above other home storage solutions.

Another Euro point of view
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Another Euro point of view

This is also what I have heard from people interested in powerwall, installation cost is the problem.

Mark.ca
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Mark.ca

Yes, it’s the USA way of making everything expensive. I was in the process of getting one since there were credits for it back then but give up on it when i saw the price $125000!!! I was to pay 3k. This was an offer form a local solar panel installer (LA Solar) and had nothing to do with Tesla other than using their product…which most pv installers do in my area.

Mark.ca
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Mark.ca

You don’t need that “special installer”…but if you have the money Tesla may as well take it…unless by special installer you mean electrician? A friend of mine has one and it was installed by the pv installer at the time he had the panels installed.

eject
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eject

Where I live you need a Tesla certified installer. With any other battery any electrician will do.

Mark.ca
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Mark.ca

And you live were?

DJ
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DJ

Well when you have deposit holders waiting 9+ months to get theirs installed and are way cheaper than anybody else why not!

D Paterson
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D Paterson

Seven months after installation, I am still waiting for Tesla to get the required permission from PG&E and Fotine them to enable time of use scheduling on the Powerwall. It’s 14 months since the order. Tesla has great problems with scheduling and coordination. They almost never keep promises such as “I will give you an update in two weeks.”

Mark.ca
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Mark.ca

I had to wait 3 months for my pv system to get approved by Edison so it’s not entirely on Tesla but there’s definitely a problem with your account.

NeilBlanchard
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NeilBlanchard

I hope that someone builds competing battery systems. I would certainly like to get this, and the waiting list for the Powerwall units is pretty long.

Pushmi-Pullyu
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Pushmi-Pullyu

As more than one comment here has speculated, perhaps the price increase is nothing more than a case of demand exceeding supply.

But to do some speculation of my own, I wonder if the problem with automated battery pack assembly at Gigafactory One has caused Tesla to raise the price. It could be that the initial price for the PowerWall was aimed at being profitable based on Tesla’s projections for easier, faster automated production. But with Elon Musk now saying that it’s actually more efficient to have some human labor involved, and production is slower than Elon’s previous overly optimistic projections, I wonder if this price increase merely reflects a more realistic estimate of production costs and production rate for the PowerWall units.

Caveat: Please note this is nothing but pure speculation on my part, not based on any inside info or even rumor.