When it comes to energy storage, every percentage point counts. Bringing the price down even only by one percent can open up the technology to a new market and expand the use of renewable energies. Tesla Energy, the automaker’s energy storage division, did just that by recently reducing the price of its commercial and utility-scale product, the Powerpack, by 5 percent.

Home Solar Power

Over the last year, Tesla and its energy partners installed quite a few energy storage project including a 12 MWh contract with Cal State University, another one for several office buildings in Irvine, and more recently in Morgan Stanley’s San Francisco skyscraper.

Earlier this year, Tesla also opened direct orders of up to 54 Powerpacks and revealed pricing directly on its website. People have since been able to order storage systems using the Tesla Powerpack and get quotes through Tesla’s “Design Your Powerpack System” tool.

At the time, the Powerpack was being quoted at $470/kWh, but now we learned that Tesla brought the price down to $445/kWh.

Here’s a screenshot of the original pricing for a 2-Powerpack system (on the left), the minimum for a system, and the new pricing on the right:

Additionally, Tesla also significantly reduced the price of its bi-directional 250 kW inverter. The inverter was originally being quoted at $65,000 and it is now $52,500 – a 19% reduction.

Last month, CEO Elon Musk said that Tesla was investing in its inverters and it was betting on the SolarCity merger to incorporate the system into its energy storage products instead of going with third-party systems for its residential solutions.

But Tesla is already using its own system for its commercial and utility-scale offerings:

The only item that saw an increase is the “Cabling & Site Support Hardware”, which is up $600 to $3,600.

After the price reduction, the cheapest Powerpack system you can buy costs a total $145,100 for 200 kWh of energy and 100 kW of peak power –  down an impressive $16,900 from $162,000.

We asked Tesla representatives for an explanation on the price reduction and we will update if we get an answer.

Last month, Musk said that Tesla is about to unveil new ‘Tesla Energy’ products by the end of the year. Consequently, and he warned that volume deliveries will be pushed toward the end of the year.

About the Author