Tesla Powerwall Review: Costs, Quality, Warranties & More (2025)

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Tesla Powerwall Cost

7/20

I mentioned above that the Powerwall is expensive, and the cost of a home battery for your solar system is an important thing to consider. Ultimately, you’ll be installing batteries alongside panels, which, by themselves, cost an average of $29,970, disregarding any incentives, according to our research. That’s expensive on its own, and then you need to consider the cost of solar batteries.

Based on data we collected from solar battery manufacturers and third-party sources, the average solar battery costs $13,455. That’s nearly 50% added on to the typical cost of a solar panel system and only for one battery. Most homeowners will need to install two or more, nearly doubling the cost of the panels themselves. This is a big reason why it’s usually black and white when it comes to whether or not solar batteries would benefit you. If you have access to net metering, it’s probably not worth spending $26,000-plus on batteries that won’t add to your long-term savings at all.

This is why I mentioned above that the Powerwall is expensive, even though it’s below the industry average on a per-kWh basis. Having to spend $16,000 minimum just to have access to energy storage is a lot, whether it’s below average or not. It’s going to be hard for most people to justify as a nice-to-have, and even for homeowners who’ll benefit financially from installing batteries, it’s going to be that much harder to secure funds or financing for.

To assess individual batteries, we look at the minimum cost per battery, which is the lowest amount a homeowner could pay for some amount of battery storage. A single Tesla Powerwall 3 will cost you around $16,125, according to Tesla’s website, not accounting for incentives or tax. With tax, you’re likely looking at closer to $17,000 each. This is above the industry average and is the second most expensive option out there — the Generac PWRcell is more expensive at around $18,000 each.

However, as I mentioned earlier, the per-battery cost is only half of the story. You also need to look at the cost per kWh, which tells you how much you’re paying for the specific volume of energy storage. The Powerwall has the second-lowest cost per kWh among the big names in solar energy storage, coming in at $689 per kWh. The only battery that’s lower is the LG Chem battery, which somehow dips as low as $472 per kWh. The average, though, is around $1,341, so the Powerwall exceeds expectations here.

Tesla Powerwall Potential Savings

I suspect most homeowners will want to know how much you can save with the Powerwall and whether or not it’s worth installing these batteries.

I’ll say right off the bat that your potential savings will be nonexistent if you live in an area with one-to-one net metering. Most states don’t offer this, but if you have access to it now, my suggestion would be to install solar panels as soon as possible from a reputable installer who will appropriately size your system and forgo the batteries.

The reason is that adding batteries will only give you the benefit of maintaining power during blackouts. Any power your batteries retain for you to call on when your panels don’t keep up with production would otherwise just be sent to your utility company, and you could call on it for free at night or on cloudy days anyway. In areas with one-to-one net metering, your utility company already acts as a battery without emergency backup, so batteries won’t save you anything additional.

On the other hand, there are three cases where installing at least one Powerwall will likely pay for itself over its lifespan:

• You live in an area where you don’t have access to a net metering program. A Powerwall will likely be the most beneficial in this case, especially if you have an above-average cost of electricity.
• You live in an area with net billing, which is similar to net metering but pays out only a percentage of the retail cost of electricity per kWh you export.
• You live in an area with time-of-use (TOU) electricity, and the cost during peak hours is above average. Note that, in this case, you stand to save money each month even if you just install Powerwalls without panels, as you can pull energy from the grid during off-peak hours and store it for later use to avoid pulling from the grid during peak hours.

In all of these cases, your Powerwall will store up to 13.5 kWh (it’s actually a bit less because some of the power isn’t usable, but for the case of comparing batteries, we usually use the actual capacity and not usable capacity) of power for you to call on at no cost. That could be at night when your panels aren’t producing power, or it could be during peak consumption times.

It’s hard to quantify actual savings because so many factors play a role — local electricity costs, your electricity consumption, your home size, home efficiency, your specific electricity plan and more. Assuming you have panels installed that offset all of your daily consumption, you don’t have access to net metering, you consume the average amount of electricity and you pay average prices per kWh, though, I’d estimate your annual savings with a Powerwall to be around $630, and that’s over and above the  savings on electricity that cover the cost of the panels and the battery. Over the 10 years your batteries are expected to last, that’s a total net savings of around $6,300.

If you’re using your Powerwall for time-based savings with a TOU energy plan, that number could fluctuate wildly up or down, and whether or not it would be worth it for you is going to depend on your specific case. I’d recommend speaking with a reputable solar installer to inspect your home and determine if a Powerwall would be worthwhile.

The video below provides a quick primer on how to use a Powerwall for time-based savings, which is a good place to start if that’s how you intend to use your solar batteries:

Tesla Powerwall Financing Options

You have four potential options for financing your Powerwalls, but you might not have access to all of them, and it depends on which route you go to get them installed. First, let’s talk about how the different options compare:

• Cash purchase: You always have the option to pay in cash, no matter which company installs your Powerwalls. This, of course, comes with the highest up-front cost, but avoiding interest and lease payments and owning your equipment outright usually means the highest savings. According to our research, paying for an entire solar array in cash saves about $5,000 more than if you took out a loan and $26,000 more than a lease or power purchase agreement (PPA). The actual numbers will vary with a Powerwall included, but the idea is the same: a cash purchase saves the most money over time.
• Loan: Loans are slightly less beneficial because you have to pay interest — an average of around $5,000 on panels alone and likely closer to $10,000 on panels plus two Powerwalls. However, they come with the benefit of being more accessible because you usually only need a few thousand dollars up front for a down payment rather than the full cost of the panel and battery system.
• Lease: Leases are like rental agreements — you pay a fixed monthly fee that’s usually set up to be below your normal electric bill. You don’t own the panels, but you get to use the electricity they produce for free. Leasing a Powerwall by itself without panels often isn’t an option, so this is only something most people can consider if they’re also installing solar panels. The average lease for a full solar array saves around $5,000 over 25 years, according to our data.
• Power purchase agreement (PPA): A PPA is similar to a lease in that you don’t own your panels. Instead, your installer places them on your roof, and you agree to buy the power that they produce. It comes with no up-front cost, like a lease, but the savings are even lower — typically around $4,000 over 25 years, according to our research. Since a PPA is based on the power you draw from the panels, this isn’t an option if you’re just looking to install Powerwalls without panels for backup power or to help save with a TOU plan.

Through Tesla’s direct installation option that allows you to install Powerwalls without panels, you can only choose cash or a loan. If you know you want a lease or PPA — which I don’t recommend unless they’re the only options you can make work financially — then you’ll want to opt for panels and Powerwalls from a solar installer. You can go through Tesla for these options, as well, but you also have options for a variety of other installers.

One more thing to note about Powerwall financing options is that they can dictate what incentives you can and cannot take advantage of. Most important, in my opinion, is the federal investment tax credit (ITC), which allows you to reduce your income taxes owed by 30% of your total system cost. You can use this for panels or panels plus Powerwalls, but you can only take it one time, so maximizing the equipment you install the first time around is going to yield the highest effective savings.

For example, if you just install panels that cost the average $29,970, and you owe enough in taxes to take the entire ITC, your effective savings will be $8,991, based on our research. If you later add Powerwalls to your system, you’ll pay full price for them since you can’t retroactively apply the ITC or apply for it again. If you installed those same panels alongside one Powerwall to begin with, your total cost would be $46,155, but the ITC would be worth an additional $6,000, totaling $13,846.

Remember that leases and PPAs don’t let you take the ITC at all, so, while they’re more accessible upfront, they save you far less both in long-term savings and when considering the effective savings you get from the ITC.

How Can You Save Money on Tesla Powerwalls?

Powerwalls are expensive, but there are a few ways to save some money:

• Consider what you’re using them for. The best way to save on Powerwalls? Install them only if you need them, and install only the number you need. This might seem obvious, but it’s actually quite nuanced. The best thing you can do for your wallet is decide if you need battery storage at all. I’ll reiterate here: if you have access to one–to-one net metering, Powerwalls aren’t going to save you any money and will actually just end up costing you far more than panels alone. Your grid acts as a “battery” with one-to-one NEM, so unless you want the added benefit of backup power for blackouts, I’d say don’t install them at all. If you will benefit financially, be restrictive with the number you install. If you just want to maximize savings with a TOU energy plan, you might only need one Powerwall to carry you most of the way through the peak hours. If you have no NEM policy and high consumption, you might need two or even three Powerwalls before you reach the point of diminishing returns. I suggest consulting with a reputable solar installer to help you figure out your best options.
• Take advantage of incentives. I mentioned in the previous section that the federal ITC can effectively save you 30% of the cost of a Powerwall, which comes out to around $4,855. You might have access to other incentives, too, which you should search and apply for. You can check the DSIRE database for local incentives. Just as an example, I live in New York and was able to take advantage of a $5,000 tax credit for my entire system through the state’s version of the ITC. A lot of states and utility companies also have specific incentives for adding battery storage because it helps reduce strain on the grid, which is a growing problem.
• Install multiple Powerwalls. Finally, you can save money on a per-battery basis by installing multiple Powerwalls. Of course, you’ll pay more in total with additional batteries, but if you know you’ll need several of them to maximize savings, it makes sense to get them all at once. Tesla’s website includes the following prices based on the number of Powerwalls you need. Note that these prices are for the equipment only and don’t include installation labor, taxes or discounts from other solar incentives:
  • One Powerwall: $9,300
  • Two Powerwalls: $17,500, which comes out to $8,750 per Powerwall
  • Three Powerwalls: $25,700, which comes out to $8,566 per Powerwall
  • Four Powerwalls: $33,900, which comes out to $8,475 per Powerwall
  • Five Powerwalls: $42,100, which comes out to $8,420 per Powerwall
  • Six Powerwalls: $50,300, which comes out to $8,383 per Powerwall

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Tesla Powerwall Power and Performance

22.5/23.75

The Tesla Powerwall gets near-perfect marks when it comes to power and performance, suggesting that the early-mover advantage really did help make Tesla’s battery one of the best in the industry.

To assess battery performance, we first look at how much power each battery can output. There are two metrics to consider here: continuous power output and peak power output. Continuous power output is going to be the most important metric for most homeowners. It’s expressed in kilowatts (kW) and tells you the normal consumption your batteries can support. For homes with a lot of things that use electricity — lights, appliances, gaming computers, EV chargers and more — a higher continuous output will help ensure your batteries don’t get overloaded during normal use, which could lead to a loss of power and reliance on the grid instead.

We give maximum points in this category to batteries with a continuous output of 10 kW or more. The Powerwall has the highest continuous output, at 11.5 kW, of the batteries we reviewed. That means it’s the best option for homes with above-average energy consumption.

We also look at peak power output, which is a less useful metric, but it tells you the maximum load your batteries can discharge without sustaining damage. A higher number here means your batteries are less likely to run into issues during normal operations if there’s a sudden high demand within your home for electricity.

Batteries with a peak output of 30 kW or higher get perfect marks here, and the Powerwall, once again, has the highest in the industry at 30 kW.

Next, we look at depth of discharge (DoD), which tells you what percentage of the battery you can drain safely without causing permanent damage. A higher DoD is better because it means you get more of the kWh you pay for. Just as an example, two batteries with 10 kWh of storage each deliver different savings if they have DoDs of 100% and 50%. The effective energy storage you have in the DoD of 100% is double that of the other, which also means your long-term savings will be about double, and the cost per kWh is, effectively, half.

The Powerwall has a 100% DoD, which is above the industry average of 94%. We give perfect scores for a DoD of 100%, and only three batteries — from Tesla, Sonnen and Enphase — score perfectly here.

Next, we look at round-trip efficiency, which tells you what percentage of the solar power collected from your panels is lost in the conversion to storable electricity. A higher round-trip efficiency means your panels are more valuable, and you’ll see greater savings on your electric bills. The difference will be small since the average round-trip efficiency is just under 91%, but it will make a notable difference over your battery’s lifetime.

The Powerwall 3 has a round-trip efficiency of 90%, which is right in line with the average. There are three batteries with a higher round-trip efficiency: the LG Chem battery with 94.5%, the Panasonic Evervolt with 94% and the Generac PWRcell with 96.5%, the highest in the industry.

How Long Can the Powerwall Run Your Home in a Power Outage?

The last piece of the puzzle when it comes to power and performance is how the battery performs in a power outage. In my opinion, this is less important than the other metrics because most homeowners will be installing these for the savings, and the emergency backup power is only an added bonus of solar batteries, but it’s still worth considering.

First, the Powerwall provides a seamless transition to backup power in the event of an outage. I’ve had my Powerwalls for years, and I only found out about the three outages I’ve experienced in that time because the Tesla app notified me that my home was on backup power. Side note: this is a nice feature because it lets you reduce your consumption, if needed, to extend your time off-grid.

Now for what I expect will be a more useful piece of information: how long the Powerwall can keep your home charged in a blackout. If you just have Powerwalls and no panels, the timeline will depend on the storage capacity you installed and how much electricity you consume. That’s a simple calculation. But the Powerwall also includes an islanding inverter, which means that if you have panels and you’re in blackout conditions, your panels can still charge your batteries.

I ran an independent test on my system by forcing myself off-grid — something you can do right from the Tesla app — and seeing how long I could last. Thanks to that islanding inverter, my panels charged my batteries throughout the day and covered my consumption, and at night, we relied solely on battery power. After three days, my Powerwalls were still at 100% capacity, meaning we could more or less expect to remain fully up and running through a power outage indefinitely.

I’ll note here that a lot of popular batteries have islanding solar inverters that let you do the same thing, but some don’t. This is a big perk, in my opinion, and if you’re buying your batteries for emergency backup power, I think choosing one with an islanding inverter built in — like the Powerwall — is a must.

I’ll mention one more cool feature here that’s unique to Powerwalls, as far as I’ve seen. Tesla’s app includes a feature called StormWatch, which monitors weather patterns in your area and automatically charges your batteries if a big storm that could cause an outage is headed your way. This is an amazing function, and it’s likely going to make a big difference for you if you’re using your Powerwalls to save with a TOU plan since it will automatically stop optimizing for TOU plans and instead store excess power so that your batteries aren’t depleted if the power goes out.

Tesla Powerwall Warranty

15/20

As is the case with any solar equipment, the warranty you get with your solar battery is a big deal. Since you’re going to be spending around $16,000 per Powerwall — including installation — and, in many cases, relying on the equipment to save you money on your electric bills, you want to be certain that your battery is going to stand the test of time and deliver those benefits for years to come.

The Powerwall comes with a 10-year warranty, which is what all of the other major manufacturers offer. However, the terms of the warranty are also important to consider, so we also score solar batteries based on the percentage of the battery capacity guaranteed to remain at the end of the warranty term, as well as the degradation per year.

All batteries lose capacity over time. This is unavoidable and is based on chemical reactions in the battery, but how the battery is manufactured can make a difference. Of course, the higher the remaining capacity at the end of the 10-year warranty the better, and the higher your savings will be.

Tesla’s warranty guarantees that 70% of the starting capacity will remain after 10 years. It gets a perfect score here, but most other companies deliver the same terms. The only outlier is the Panasonic Evervolt, which guarantees just 60% will remain at the end of the warranty term.

Tesla Powerwall Availability

5/10

We score batteries based on how accessible they are, and three different factors contribute to this score.

First is whether or not there are known lead time issues with getting the batteries installed. Since there’s such a high demand for solar now, and because the changes to NEM policies in many states are making batteries all but a necessity, there has been a bit of a scramble for battery manufacturers to keep up with demand.

I read through dozens of reviews for different batteries to assess lead time issues, and I really only found Tesla to have delays, so it lost points in this area. I have to say that this isn’t really a negative reflection on the company. In fact, the lead time issues are due to high demand for Tesla products, specifically, so, really, the delays you might see are a result of Tesla having a superior, more desirable product.

Still, it’s something to consider if you’re looking for a fast installation. I ordered Maxeon panels and two Powerwalls from my installer at the same time. Our panels were installed within two months, and it took another three for them to add the Powerwalls, and that was solely due to the delays on Tesla’s end.

We also consider how adaptable the battery installations are. Some batteries, such as those from Sonnen, Generac and Enphase, allow for DIY installations. I wouldn’t recommend a DIY installation despite being an avid DIYer myself, but it’s a nice option that Tesla doesn’t provide, so Tesla loses some points here.

Finally, we consider whether or not the manufacturer allows for installations with and without solar panels. Most customers will likely be installing solar batteries to maximize the value of their panels, but some looking to save with TOU electricity plans might just want a battery. In that case, being able to install batteries alone is a huge deal.

Through Tesla Direct, you can get just batteries installed without panels. Most other manufacturers offer this, as well, but it’s still worth mentioning.

Tesla Powerwall Battery Type and Sustainability

3.33/5

Finally, we consider the overall sustainability of the solar batteries we review. Of course, environmental and social sustainability are important to our team at EcoWatch, and including this factor in our methodology means identifying companies that are likely to stand the test of time and benefit the industry as a whole along the way.

First, we consider the battery type, of which there are three main options: lead-acid, flow and lithium-ion. Lead-acid batteries are the cheapest of the three, but they have the shortest life span, the smallest capacity and contain potentially harmful materials, including, as the name suggests, lead. Flow batteries are an emerging technology that show a lot of promise in the world of solar, particularly because they have a potentially limitless life span, but right now, they’re prohibitively expensive and take up too much space for most residential applications.

Lithium-ion batteries are the preferred solar battery type at this time because they’re affordable, a suitable size for homes, have a good life span and are safe. All of the batteries we review and recommend are lithium-ion, including the Powerwall.

Next, we look at whether or not the batteries are predominantly manufactured in the United States. This doesn’t prove sustainability, of course, but it does mean that the component and raw material sourcing is more easily traceable, which helps demonstrate a more sustainable supply chain. It also means a much lower chance of child labor and slave labor going into the production process.

Tesla gets full marks in both of these categories, as the Powerwall is a lithium-ion battery, and it’s one of only two battery manufacturers — the other is LG — that mostly manufactures in the United States.

The last thing we look at in terms of sustainability is a history of unsustainable working conditions. That includes slave labor, child labor, poor or unsafe working conditions and a history of racism. I’m disappointed to report that Tesla does have a history of racism in one of its factories in California. It was part of a lawsuit for racial discrimination, which went to trial and resulted in the jury siding with the plaintiff. This is really unfortunate, and it means if you’re looking for a company that practices social sustainability, too, you might not want to support Tesla by purchasing a Powerwall.

Tesla Powerwall Comparison

Here’s a table that compares the Tesla Powerwall with two other popular brands: the LG Chem batteries and the Panasonic Evervolt.

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Does Tesla Make Any Other Solar Products?

Tesla used to manufacture its own solar panels, but it has since stopped that part of its manufacturing endeavor and instead maintains an installer network that uses Q Cells panels. However, it still manufactures the Tesla solar roof shingles, which are the most popular solar roof option in the industry.

It also offers the Tesla app, which gives you complete control over all of your Tesla products, including how your Powerwalls manage stored energy, your solar production if you have panels installed, charging and details about your Tesla EV, if you have one and information about your long-term energy savings using all of your Tesla products.

Tesla also has its own EV charger, which it installs through its dealer network alongside panels and Powerwalls.

Who is the Tesla Powerwall Best For?

I wouldn’t recommend Powerwalls — or any solar battery — if you have one-to-one net metering. You’ll pay thousands of dollars extra for your system, and you won’t see any additional financial benefit from it. The only perk you’ll have is maintaining power through outages, but I doubt that’s worth the $16,000-plus you’ll pay for a Powerwall.

In my opinion, the Powerwall is best for homeowners who want peak performance from their solar batteries and who know that they will benefit from choosing batteries to begin with. If you live in an area with no access to net metering and want to install solar panels, batteries will be all but a necessity to maximize savings. In that case, Powerwalls are about the best batteries overall, given their high performance and reasonable cost per kWh.

Powerwalls are also the best batteries for people who have TOU energy plans. Tesla’s product gives you total control over how you use your stored electricity, which lets you maximize your savings based on peak and off-peak hours.

What’s Next? 

If you know you want or need solar batteries in your home and think the Powerwall is your best option, you can submit a request for installation on Tesla’s website, although I instead recommend researching reliable installers in your area that install Powerwalls and going through them instead, as Tesla outsources to third-party installers, which can lead to some issues.

I also recommend you read through some of our company comparisons to find the best installer for you. Our SunPower vs. Tesla review goes in depth on two of the largest solar companies in the U.S., both of which install solar batteries, including the Powerwall. You can read through our article on the top 5 solar batteries to see a more detailed comparison between the Powerwall and its competitors. Finally, I suggest checking out our article on how net metering works to decide if solar batteries will benefit you at all based on your local incentives.