A Detailed Cost of Tesla Powerwall Installed


A Detailed Cost of Tesla Powerwall Installed

The Tesla Powerwall has high initial costs but leaves room for special discounts when paired with other Tesla products. Since Powerwalls support clean energy consumption and storage, many states and utility companies provide incentives and additional rebates for purchasers.

The total cost for installing a Tesla Powerwall is $12,000. The base unit cost for the Powerwall battery is $7,500, with the Gateway costing $1,000 and installation costing $3,500. These initial costs are mitigated by incentive programs made available by specific states and utility companies.

A detailed cost analysis of Tesla Powerwalls is necessary to properly break down the economic incentives made available in different states and regions. Read on for a more detailed cost analysis of the cost of Tesla Powerwalls, factoring in the state, local, and corporate incentives and rebate programs.

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A Detailed Cost Analysis of Tesla Powerwall

When purchasing a Tesla Powerwall, there are many variables that may affect the initial pricing and long-term costs of buying and installing a Powerwall. One of the most important things to consider is that Powerwalls are not available for individual sale. You would need to buy Tesla solar panels to be eligible to buy a Powerwall.

Some states have implemented state-wide incentive and rebate programs for owners of technology like the Tesla Powerwall.

In other states like Massachusetts, they are only at the beginning stages of incentivizing technology that operates in conjunction with clean and renewable energy, such as the Powerwall. This reduces the potential economic benefits of purchasing the Powerwall in some states compared to others.

Here is a run-down of the economic variables that determine the upfront costs of the Tesla Powerwall and the potential savings you can expect to see:

  • Powerwall battery costs
  • Solar panel costs
  • Back-pp Gateway 2 energy management system
  • Powerwall installation costs
  • Federal tax credits
  • California SGIP program
  • Green Mountain’s Bring Your Own Device program
  • State, local, and utility incentives for Tesla Powerwalls

The best place to start before exploring available rebate and incentive programs that vary between states, you should be well-informed about the upfront costs of the Powerwall. These upfront costs factor in the cost of the Powerwall battery unit and Tesla’s energy management system called Gateway.

Powerwall Battery Costs

As previously stated, the Powerwall Battery unit alone costs $7,500. Of that $7,500, the Powerwall makes up $7,000 of the total cost, and the remaining $500 covers the hardware and associated components. This is an upfront cost you can expect to pay when ordering the Tesla Powerwall.

The Powerwall battery functions as a secondary energy source for your home. When your home is off the grid during a power outage, the Powerwall powers your home using stored energy from your solar panels or Solar Roof if you have one. This makes Powerwalls silent compared to gas-powered electrical systems.

Depending on the size of your home and amount of energy consumption, purchasing more than one Powerwall may be necessary to ensure your home has electricity during a power outage. To incentivize the purchase of multiple Powerwalls, Tesla offers increasing discounts for every additional Powerwall you buy.

The following table lists the costs for one or more Powerwalls taken from the official Tesla website and calculations based on the average household energy consumption of 30 kWh/day.

Number of PowerwallsCostHours of Electricity
1$12,50012
2$19,00018
3$26,00024
4$33,00030
5$41,00036

These prices do not include the cost of solar panels, federal rebates, or money saved from state incentive programs. With the purchase of more solar panels and Powerwalls, the cost of each Powerwall decreases and is more heavily discounted.

Solar Panel Costs

In recent years, Tesla made Powerwalls unavailable for individual sale and only available with the purchase of Tesla solar panels. This changed the price structuring of Powerwalls since you save more now on both solar panels and Powerwalls when purchased together.

Depending on the energy needs of your home, you may or may not benefit from installing more solar panels to generate enough energy. The amount of energy generated by your solar panels will vary depending on the climate and available sunlight in your area.

Solar PanelsDaily Energy ProductionCostMonthly Electricity Savings
4.08 kW13-20 kWh$6,491$90
8.16 kW27-39 kWh$12,981$180
12.24 kW40-59 kWh$19,472$269
16.32 kW54-78 kWh$25,963$359

As the table shows, the initial costs of the solar panels are higher when you install more, but you also save more money each month on your electric bill. This trade-off between short-term expenses and long-term savings is important when purchasing a Powerwall with solar panels.

Here is another way to think about the relationship between short-term costs and long-term savings: the more money you spend on solar panels now means more money saved on electricity each month. And with more money saved each month, the quicker your initial investment in solar panels will pay itself off over time.

Back-Up Gateway 2 Energy Management System

Gateway is an energy management system installed with every Powerwall that manages the connection between your Gateway and the grid. During power outages, the backup Gateway disconnects your home from the grid and connects to the Powerwall to act as the primary power source.

The backup Gateway 2 is $1,000 and is included in the costs associated with the Powerwall. The installation of the Gateway is also included in the installation costs of the Powerwall.

Considering the important function, the Gateway serves as a mediator between the Powerwall and the grid. This makes Gateways a necessary expense and component in every Powerwall setup.

Federal Tax Credits

Regardless of the state, you live in, purchasing a Tesla Powerwall makes you eligible for a 26 percent federal tax credit. This will save you money by reducing the amount of income tax you owe to federal governments. These federal tax credits are given to incentivize green technology.

When you are ordering your Powerwall on the Tesla website, the federal tax credits will be factored into the final price listed. This ensures that customers are aware of the tax credits they will receive after completing their purchase and give a more accurate estimate of the real price of their Tesla products.

California’s Self Generation Incentive Program

States like California take even more initiative to promote green energy and technology compared to other states. The Self Generation Incentive Program (SGIP) provides a sizable rebate for qualifying distributed energy systems, including advanced energy storage systems like the Tesla Powerwall.

California greatly prioritizes clean and renewable energy in its policies—offering more incentives and tax breaks to people that invest in green technology. In other states, you may only find cash rebates without any comprehensive green-energy initiatives and programs.

According to the California Public Utilities Commission, residential and non-residential facilities with installed energy storage systems that could function during a power outage are eligible for a rebate.

For business owners, you can also take advantage of this rebate for your company facilities if you choose to install a Powerwall. This shows how far-reaching the Self Generation Incentive Program is in California. Technology like the Powerwall is heavily incentivized to spur the transition to greener technologies.

SGIP Application

To receive the SGIP cash rebate, you need to apply for SGIP online. Due to the high volume of applicants, the funding of this program is dependent on the number of applications and what step in the SGIP budget you are in. You can view the SGIP budget here to view the funding for each step.

Here is the list of steps you must go through before receiving your SGIP cash rebates:

  • Complete your Powerwall order and wait for confirmation. Afterward, a certified installer or Tesla employee must file the SGIP paperwork on your behalf to reserve a part of the funding.
  • The installation of your Powerwall will finish. Once Tesla gets approval from your utility company to operate your electrical system, then your Powerwall will be commissioned and fully operational.
  • The last portion of the SGIP paperwork will be filed by your certified installer, and an SGIP administrator will check your system to ensure it is fully functioning.
  • The cash rebate will be sent to you.

To avoid your cash rebate being denied to you, make sure the installer of your Powerwall is certified. If not, then you will not receive any cash rebate through the SGIP program.

Green Mountain’s Bring Your Own Device Program

In coordination with Renewable Energy Vermont, Green Mountain gives qualified battery owner’s cash handouts after enrolling in the BYOD program. Tesla Powerwalls are eligible for this program along with other clean energy storage devices. This upfront payment amount is dependent on the amount of energy the batteries store.

Here is how the payment system works:

  • $850/kW of storage for three-hour discharge
  • $950/kW of storage for four-hour discharge
  • An extra $150 per kW when retrofitting existing solar-powered systems that help put less strain on the power grid

This program is available to residents and small businesses wishing to install a Powerwall battery to their home or business sites. Vermont’s green energy initiatives like the BYOD program help to make electricity less expensive for everyone using the grid while spurring a transition toward cleaner energy sources.

To enroll a Powerwall into the BYOD program, you will need to visit the official Green Mountain Power website and click on “enroll now.” Afterward, you will need to provide some information about yourself and the battery you are trying to enroll in the program.

State, Local, and Utility Incentives

The state where you live and the utility companies you have access to are both contributing factors that determine your eligibility for cashback rebates and incentive programs. States like California are paving the way for green technologies and infrastructure supported by environmental policies that promote clean energy use.

Since Tesla Powerwalls are classified as energy storage systems, homeowners in California are eligible for a cash rebate through the Self Generation Incentive program. Similarly, the state of Vermont gives $850 payments to owners of Powerwall batteries after enrolling in the Bring Your Own Device (BYOD) program.

Although Vermont and California have some of the best state and utility incentives, many other states give tax credits, exemptions, and other benefits to owners of Powerwalls.

Arizona

In Arizona, a state tax credit is available to owners of solar technology such as solar panels. This tax credit amount peaks at $1,000, with the amount given depending on the price paid to establish a solar energy system in your home. The only qualification is that your battery installation is completed by a licensed Arizona contractor.

The major utility incentive available to homeowners in Arizona for solar and energy storage is provided by the Salt River Project. Salt River Project provides up to $3,600 for Powerwall installations, which varies on the quantity and price of your Powerwalls.

The only condition to qualify for this $3,600 cash amount is allowing a Salt River Project employee or representative to file for the customer. This is a large deduction off the installation costs of the Powerwall and is an easily accessible incentive for homeowners.

This battery storage incentive program by Salt River Project is currently not accepting reservations. Even so, you can inquire about reservations by visiting the Salt River Project website and try to get your battery commissioned before the Jan. 31, 2022 deadline.

California

Aside from California’s SGIP program, there are a few utility companies that provide their own incentives for Powerwall installations and operating solar panels.

The first utility company is Anaheim Public Utilities. This utility company hopes to accelerate a broader transition towards renewable energy technologies and renewable energy storage systems.

  • Anaheim Public Utilities provides up to $2,500 for Powerwall installations; it must be filed for the customer by an Anaheim employee or representative.
  • The battery must be UL certified with a minimum capacity of 5 kWh capacity.
  • The battery must be compatible and able to store energy derived from electrical energy, solar PV energy, wind energy, or some other form of residentially-produced electricity.

The other utility company that incentivizes energy storage systems like the Tesla Powerwall is Glendale Public Utilities. Glendale is offering up to $250 per kW of stored energy when using a Powerwall or other qualifying energy storage systems. You can find more details about Glendale’s incentive program here.

Colorado

In Colorado, there are three utility companies offering incentives for solar energy generation accomplished using the Tesla Powerwall.

  • Black Hills Energy: Offers a $0.03/kWh incentive for 10 years when generating energy with Tesla solar panels.
  • Fort Collins: A $250/kW incentive is guaranteed up to $1,000 when relying on solar panels.
  • Colorado Springs: Offers an $80/kW incentive for energy produced from solar panels.

These utility companies all reward reliance and usage of solar technologies. Since solar panels are required before purchasing a Powerwall, these utility incentives give you an edge when using Tesla solar to power your home.

Connecticut

Connecticut has a similar incentive program to the Green Mountain BYOD program in Vermont called ConnectedSolutions. This program grants you hundreds of dollars per year after enrolling your Powerwall in the program.

  • According to the ConnectedSolutions website, you can earn up to $1,500 depending on your battery’s settings and system.
  • Excluding Tesla, the other companies you can take advantage of with this incentive program include Generac, SolarEdge, and Outback.

Another incentive available to Connecticut homeowners is a $675/kW incentive that is guaranteed for up to 10 kW, which is provided by Norwich Public Utilities (NPU). This is a one-time rebate of up to $6,750 total or $.0675 per watt. 

Delaware

Delmarva Power & Light, a utility company in Delaware, gives cash rebates for homeowners installing solar panels. Delmarva helps cover the installation costs equal to $700 per kW up to $6,000.

Since Tesla solar panels are a necessary purchase before getting a Powerwall, this makes Powerwall customers eligible for this rebate. The rebate provided by Delmarva covers a large portion of the Tesla solar panel installation costs, thereby saving you money and making your Powerwall purchase and installation much more affordable.

Florida

Jacksonville Electric Authority (JEA) is a Florida utility company offering up to $4,000 to cover Powerwall installation costs. This is a part of JEA’s Solar Battery Incentive program that is geared towards promoting renewable energy in the form of more affordable green technology.

This incentive program does not only apply to residential homeowners but business owners as well that possess a qualifying battery storage system. The $4,000 rebate amount is subject to change and is only available to JEA customers.

Hawaii

Tesla solar panel owners are eligible for Hawaii’s state credit, which is equal to 35 percent of the solar energy systems costs or $5,000 per 5 kW of energy. This state credit is directed specifically towards technologies that generate solar power.

This state credit is a part of Hawaii’s effort to promote clean energy technology. Since Powerwalls come with solar panels, this helps spur this transition to clean energy and storage.

Idaho

To lower the higher costs of solar technology, Idaho has a state tax credit equal to 40 percent of the installation costs up to a maximum of $5,000 per year. This is to lower the upfront costs of installing your Tesla solar products, primarily Tesla solar panels.

This state tax credit applies across four years’ time, so this can cover your installation costs up to a total of $20,000. Compared to other states, Idaho provides owners of solar technology with a larger state tax credit to ensure that homeowners are not deterred by the upfront costs of solar technologies.

Illinois

In the city of Naperville, $30 per kW of stored and used solar energy is offered up to a total of $3,000. This rebate value can range from $1,000 to $3,000, depending on the size of the solar energy system. You can find more information about this rebate program on the Naperville website and apply for this rebate here.

The solar installation rebates offered in the city of Naperville are applicable to solar energy systems and solar water heating systems. Purchasing the Powerwall and solar panels would qualify you for this rebate as long as you are a Naperville resident.

  • According to the Naperville website, the city is providing this rebate to improve solar market conditions to lower the financial barriers of solar energy systems for residents and businesses.
  • This rebate is supported by policies and promoting clean energy practices within Naperville communities.

Unfortunately, Illinois does not have any state-wide initiatives or incentives for installing and using Powerwalls. If you happen to live in Naperville, then make sure to check out this rebate offer before purchasing a Powerwall and solar panels.

Maryland

For homeowners in Maryland with a solar energy system, you are eligible for a $1,000 rebate. Additionally, you can earn $170 per kW, which lowers the costs associated with Tesla solar panels.

For the Powerwall, there is a state tax credit that is equal to 30 percent of installed cost up to $5,000. If you are installing multiple Powerwalls in your home, then this state tax credit will reduce the total installation costs.

Maryland is a great location if you are looking to install Powerwalls and solar panels since you can save money on your solar energy system and Powerwalls.

Massachusetts

For solar energy systems, Massachusetts offers a $1,000 state tax credit. On top of this, you can receive hundreds of dollars each year by enrolling your solar energy system in the Massachusetts SMART program. SMART is a long-term solar incentive program created to galvanize the development of solar technology.

Not only that, but Massachusetts residents that own Tesla Powerwalls are eligible for the ConnectedSolutions program. This is the same incentive program that Connecticut utilizes to promote clean energy storage. Depending on the settings and system of your Powerwall, you can earn up to $1,500.

Under the Municipal Light Plant Solar Program, the majority of utility companies in Massachusetts offer a $1.20/watt incentive for Powerwalls. Powerwalls help alleviate stress on the grid during critical moments, making the grid less vulnerable and prone to failure during high volume hours when electricity is more expensive.

New York

New York has a state tax credit you can take advantage of when you have solar panels installed in your home, up to $5,000 and $350 per kW. This is one of the highest state tax credit amounts provided in any state, which is reflected in New York’s emphasis on green energy and policies.

Regarding the Powerwall, the NYSERDA offers $250 per kWh up to a maximum of $6,250. Once again, this is a large sum when compared to the incentives provided in other states. This drastically increases the amount of savings you can accumulate by owning a Powerwall, which helps to mitigate much of the initial costs.

Between both the state tax credit and the NYSERDA incentives for Powerwalls, you can drastically lower short-term installation costs while improving your long-term savings. New York is close to the top with California and Vermont when it comes to effective incentive programs for clean energy technology.

Oregon

For every kW of energy generated by solar panels, you can earn $300 up to a maximum of $2,400. This rebate is provided by the state of Oregon and is available state-wide to solar energy system owners.

On a local scale, there is one city and a single utility company that provides incentives for solar power generation using solar panels or Solar Roofs.

  • The City of Forest Grove provides a $500/kW incentive for solar panel energy generation up to $1,000.
  • Salem Electric is a utility company that offers customers a $300/kW incentive up to a maximum of $1,500.

These local cash incentives alleviate the high financial costs of solar panels on top of the state-wide cash rebate available to solar energy system owners. This makes Oregon one of the better states for establishing a solar energy system affordable with some worthwhile long-term savings.

Rhode Island

The ConnectedSolutions program is available to residents of Rhode Island. This secures Powerwall owners hundreds of dollars per year after enrolling in the program. Although your battery system and settings will ultimately determine the rebate you receive, you can earn up to $1,500.

If you own solar panels, then you can also trade in your Solar Renewable Energy Credits (SREC) to earn $100/kW off the loan price or cash of your solar panels.

Texas

Austin Energy is a utility company in Texas that offers a $2,500 rebate for solar energy system owners. This is part of Austin Energy’s solar incentive program. The program also includes performance-based incentives for qualifying families with a capacity-based incentive of $0.60/Watt.

In the city of San Antonio, CPS Energy offers a $2,500 rebate to residents. To qualify, you need to make sure your solar panels are installed by a registered solar contractor. CPS energy rebates make solar technology for residents wishing to install solar panels.

Conclusion

The cost of Tesla Powerwalls is high but is much more affordable thanks to discounts, cash rebates, and incentive programs available in many states. The upfront costs of Powerwalls and solar panels are mitigated by many of the long-term savings guaranteed by state governments, local utility companies, and reduced electric bills.

Make sure to check out the programs in your state and locality regarding solar energy and storage technology. You want to get the best savings when purchasing a Powerwall. This will not only save the environment but your wallet too!

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Greg

Hi, I'm Greg. My daily driver is a Tesla Model 3 Performance. I've learned a ton about Teslas from hands-on experience and this is the site where I share everything I've learned.

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