Tesla increases the price of the Powerwall as demand greatly outpaces production

When we talk about Tesla being production constrained, we most often talk about the company’s vehicles. But the Powerwall, Tesla’s home battery pack, might be its most production constrained product.

Now, the company has significantly increased Powerwall’s price just as it is expected to ramp up production.

Powerwall availability has been limited in many markets and many reservation holders have complained about the lack of communication about a timeline to get the energy storage device.

One of the greatest features of the Powerwall has been its price, which is significantly lower per kWh than the competition.

But now the automaker is increasing the price of the device by a significant amount.

Tesla updated the Powerwall page on its website today with a $1,200 price increase between the actual battery pack and the supporting hardware:

• Powerwall went from $5,900 to $6,700
• Supporting hardware went from $700 to $1,100

The price increase follows another smaller price increase earlier this year.

Those prices are before the cost of installation, which Tesla says also increased. Previously, Tesla said that buyers should expect to pay between “$800 and $2,000”, but the website now says that a “typical installation” costs between “$1,000 to $3,000.”

We have contacted Tesla for a comment on the price change and we will update if we get an answer.

Update: Tesla sent us the following statement about the price increase:

“We occasionally adjust our global pricing to best reflect what we’re offering to customers and the value of our products. The price adjustments made today are the latest example of that.”

Tesla also updated the specs of the device, which now list it as scalable to 10 units (previously 9) and it is about 10 lbs. lighter than it was last year:

Tesla now says that “the earliest they are currently scheduling Powerwall installations for new orders is late 2018.”

Earlier this year, CEO Elon Musk said that Tesla Energy is ‘battery cell starved’ but the growth outlook is ‘crazy’.

The company has been guiding a production ramp up for Powerwall by the end of the year.

Over the last year, Tesla focused on larger energy storage projects with Powerpacks and Powerwall projects were mostly limited to work with Tesla’s residential solar projects.

Tesla says that several updates to the Powerwall are coming in the next year, including a solution for 3 phase homes in APAC, backup functionality in European markets, more connectivity and reliability.

The company also plans on redesigning the supporting hardware to match the design of the Powerwall and introduce more functionalities to the mobile app.