Tesla’s all new Powerwall is a great concept – we love the idea of the massive potential of reducing electricity costs! But how long will it take to actually save you money based on the current cost of the unit and other related costs?
The Powerwall promises to be available in two models, a 7kW or 10kW battery that can be used to power your home and offset some of your electricity costs.
The idea is to charge the Powerwall with solar power during the day, then use the stored power to run your home in the evening when your electricity price is at it’s peak. Everyone’s future goal is to charge the Powerwall enough to go off grid completely and cut all ties with Synergy (or your electricity provider).
“Already enthusiasm for the product has been keen”. Said Tim Mullaney, special to CNBC.com. “Yesterday Elon Musk announced that there had been 38,000 reservations for the power unit in California, a sellout into next year, but he also conceded that the system currently makes little economic sense for most utility customers in the U.S.”
So What will your Powerwall system actually cost?
Let’s look at the current package cost of installing a Powerwall in your home. We estimate that the cost of the Powerwall unit landed in Australia will escalate to approximately $10,000 by the time is arrives from the US. Add roughly $5,000 to cover the cost of the inverter, battery management system and various electronics. Another cost of $5,000 then needs to be incorporated to cover the panels and installation (if you don’t already have panels installed). This brings us to a final total of approximately $20,000 for your until supplied and installed.
If you do the math, the ROI for the unit supplied and installed is 16.5 years.
“Tesla’s $3,000USD to $3,500USD Powerwall system for homeowners (the price depends on the size of the system, either the 7-kWh or 10-kWh version) may actually cost as much as $9,000USD—including installation and ancillary electronics—for the consumer”, said Dean Frankel, an analyst at Lux Research in New York. “It’s a lot more expensive now because of how small the market is, that’s especially true of the electronics, which are less advanced commercially than the batteries themselves.”
We also need to consider the competition. It is not the only battery storage system on the market, there are big players on the bandwagon including BMW, Samsung, SMA, BenQ just to name a few. The one thing all these companies have in common is that none have achieved a target price that equates to a minimum 10 year pay back period.
So what is the next move?
We recommend being “Battery storage ready”. If you don’t already have a Solar PV system installed, we can install a system that guarantees you a R.O.I of 3-4 years with the current government incentives.
Once battery storage is a more a more economical option for you, then we will happily convert current system and install a brand new battery storage system for you. There is no need to delay your decision based on the technology while the sun is shinning in our beautiful city of Perth.