Tesla has released a new comparison report claiming Powerwall with solar is cheaper than a traditional backup generator.
For years now, Tesla has enjoyed a giant backlog of Powerwall orders, but now that production has ramped up, the automaker has worked through most of that backlog, and it has to start generating more demand for the home energy storage product.
Tesla has now released a new report that compares Powerwalls as a backup system to backup generators.
The company claims that when combining a Powerwall with solar, the backup system is cheaper than a traditional generator:
When paired with solar, Powerwall works daily to reduce your monthly electricity bill. Over ten years, these savings can make Powerwall and solar more cost effective than a generator.
Tesla says that you can save about $20 per month on payments when accounting for electricity bill savings and that overall, the system can cost up to 20% less over 10 years:
Tesla also lists a bunch of other advantages of Powerwalls over backup generators:
Differences Between Powerwall and Backup Generator
| Powerwall | Backup Generator | |
|---|---|---|
| Experience | Automatic, < 1 second transition to back up, without interruption | 15-30 second delay, before automatic or manual backup |
| Energy Source | Stored electricity from solar panels or the grid | Natural gas, liquid propane or diesel |
| Noise | Quiet (< 40 dBA at 1 meter) | Louder (77 dBA at 1 meter) |
| Installation | Indoors or outdoors, wall-mounted or floor-mounted | Outside, generally on concrete pad, due to odor and exhaust |
| Maintenance | Minimal | Refuel, servicing and oil changes |
| Financial Value | Reduces your electricity bill by storing solar or energy from the grid when prices are low | Has no effect on your electricity bill |
| Grid Services | Earn money by participating in Virtual Power Plants and energy retail plans like Tesla Electric | Can’t participate in Virtual Power Plants |
| Warranty | 10 years | 5 years |
| Environmental Impact | Powered by the sun | Produces toxic fumes that may expose customers to hazards like carbon monoxide poisoning |
Electrek’s Take
It’s important to note here that a Powerwall is cheaper than a generator after accounting for the savings that come with solar and the cost of fueling the generator.
Top comment by VoltMan
My 16Kwh LG battery was about $14,000 as I recall. A similar sized output generator for our house would've cost about the same as the LG battery did. Mostly it works fine but we had a few nail biters during blackouts in winter months which are notoriously overcast in Michigan. During those times, we literally had everything turned off except for refrigerators and furnaces (our house has 2 of each).
I don't regret my battery spend one dollar of it. I could have a big honking natural gas generator like my in-laws do who live down the road and mostly they pay $50/month to the gas company for the privilege of having it hooked up. Not for me.
When you look at the direct cost of both, a generator is cheaper. A single Tesla Powerwall starts at $8,400 and a 10 kW costs about $2,000 – both before installation.
Then, when you add solar, it adds to the price, but you start having significant savings on your electricity bill on top of having backup power.
I have two Powerwalls, and I absolutely love them. It’s a great product, but I understand it’s not a cheap product accessible to anyone. A generator can be cheaper.
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