Tesla has selected Australia as one of the first countries to install the updated Powerwall Battery solution (Powerwall 2.0 system) due to its tariff structure, high solar radiation values, and high electricity prices. The Powerwall 2.0 stores double the energy (13.2 kWh), is 30% smaller in size and similar in cost.
The Powerwall 2.0 system can be used for load-shifting in which energy management is used to move demand from on-peak to off-peak hours. In other words, the Powerwall 2.0 system is charged by the household or business grid during the off-peak tariff hours and discharged back into the same grid in the on-peak tariff hours. The difference between the two tariffs represents the savings that are then used to pay back the investment and eventually make a profit on the investment. The Powerwall 2.0 system may also be used for PV production storage to be used in the nighttime where household electricity consumption is highest, and/or just for backup power.
With 13.5 kilowatt-hours of usable storage, the Powerwall 2 has over twice the capacity of the original, which could store 6.4 kilowatt-hours when new.
Too Much For Most Aussie Households
The average Sydney household without gas uses an average of around 17.6 kilowatt-hours a day and perhaps half that overnight. This means only very large or very wasteful households are likely to be able to use a Powerwall 2 at full capacity for ‘solar shifting’ and so get the best possible return on the battery system.
How Much Does The Tesla Powerwall 2 Cost in Australia ?
In Australia, across our network of over 150 solar installers, we expect this installed cost of a Tesla Powerwall 2 to cost between $14,000 and $16,000 excluding Solar Panels and any rebates that might be available in your state.
The economic feasibility of the investments of each of the four scenarios is determined by calculating the economic methods such as the Discounted Payback Period, the Net Present Value, the Internal Rate of Return, and the Profitability Index. Tesla has announced the impending arrival of the Powerwall 2 at a promised price point that, on the surface, looks very compelling: $10,150 fully installed1.
Tesla Powerwall payback
It is difficult to beat the return on a term deposit by installing a Powerwall 2 using my assumptions, but it can be done provided a household’s electricity consumption is extremely unusual and time-of-use tariffs remain as high as they are now. Even if you are confident you can use most of a Powerwall 2’s output during peak periods, you will still be at the mercy of changes in electricity prices that are out of your control. So you will not only have to be unusual, you will also have to be lucky.
Payback times will be different for every household, but in some instances it seems the payback time may well exceed the warranty period for the Powerwall. If your intention is to have the Powerwall paid off by your electricity savings, then you might want to chase a further guarantee from your installer that the unit will last that long.
What’s also clear is that tapping into your own solar power as much as possible, rather than feeding it back into the grid with a measly feed-in tariff, will decrease your payback time.
These are just simple calculations to give a rough estimate of the potential payback time. There are a range of factors that can influence the outcome, including increases in electricity prices and ongoing maintenance costs, which you might want to factor into your own calculations.