Tesla’s 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 is available as a 13.5kW battery of usable power that can be used to power your home and offset some of your electricity costs. Considering the national average usage is around 20kWh, it’s designed to see you through the night.
The idea is to charge the Powerwall with your solar power during the day, then use the stored power to run your home in the evening when your solar is not making electricity. Because it’s an AC connected battery we can install it on any Solar PV system. The main criteria is to check if your Solar PV system is big enough to run your home and charge the battery.
So how much can you save?
A 6.6kW Solar PV system in Perth and the 2021 price of power will create around $3000 worth of electricity. However to save this amount you need to use this power as it’s created – during sunlight hours.
That is unless you have a battery.
Most of our clients are saving between $1400 to $1800 per year (with a 6.6kW system, no battery). Those that really watch how and when they use their power can save up to $2400 per year.
With a battery, you don’t have to worry about when you use your power. With a battery, you can save the full $3000 per year.
So what will your Tesla Powerwall system actually cost?
Let’s look at the current package cost of installing a Tesla Powerwall in your home. The cost of the Powerwall unit landed in Western Australia and fully installed in your home by a specialist electrician in 2020 is around $15,000 (however price rises are imminent. Add the cost of a 6.6kW Solar PV system to run your home and charge the battery for $5000 makes the package around $20,000.
What’s your reason for buying a battery?
Is it Power Security?
Do you want the be the only home in the street with power in a blackout?
Have you got a freezer full of crayfish you don’t want to spoil?
Being without electricity is a huge inconvenience and when we don’t have it we will pay a high price to get it.
Is it a position of honour?
Maybe it’s because we can’t stand the thought of selling our electricity to Synergy for 3 cents and having to buy it back at 29 cents.
We feel ripped off by institutionalised energy companies.
Is it because you’re not that organised?
Maybe you don’t want to schedule our energy usage. Using timers on appliances setting air-conditioners to come on when you aren’t home, trying to use most of our power when the sun is shining. It’s a lot of hard work. With a battery, this takes care of itself. You can use your appliances whenever you want.
Perhaps it’s for environmental reasons?
So good on you, there should be more people like you in the world.
Using the sun to make your electricity certainly makes more sense than buying dirty, polluting, fossil fuel electricity.
We can now also recycle virtually the entire system at end of life from the aluminium and lithium batteries to the cables and plastics. We can recycle the lot.
Is it for financial investment?
Simple ROI (return on investment). Cost $20,000 = return $3000 per/year = 15% per year.
Compare this rate to money in the bank.
Nothing more to say…
Is it pride of ownership?
It feels good to have the latest technology, to be the first in the street to be energy independent and being one step closer to having carbon-neutral life.
So, what’s the next move?
We recommend at the very least to be “battery storage ready”. This will ensure you have a system that’s big enough to run your home and charge a battery.
As the solar rebate is reducing each year the sooner you install solar the cheaper it will be. You may want to install a battery at the same time but the battery can wait – installing solar or upgrading your existing system should be a high priority. Particularly in Perth where we get so much sunshine, it’s one of the best places in the world to install solar.
Will Batteries come down in price?
Eventually we think the price will come down however in the short to medium term it’s unlikely. This is due to the laws of supply and demand. Quite simply, battery companies can’t keep up with the demand of lithium batteries. Along with growing markets like electric cars, home batteries, computers, phones, power tools and many other battery appliances mean there is a huge demand for batteries across the world. Until supply catches up with demand the price is unlikely to drop.
It won’t cost anything to get a quote.
Our fully trained staff will be more than happy to have a chat and even call out to assess your home or business. We will give you an accurate cost and savings for a solar PV and battery system at your place – so you have nothing to lose, contact us today.