Tesla has slashed the price of the Powerwall household battery for the second time in as many months, this time by more than 10 per cent thanks to the falling price of materials and the freeing up of supply chains.
The energy storage and electric vehicle giant sent emails to its distributors in Australia on Tuesday announcing that the cost of the 13.5 kilowatt hour Powerwall is being cut by $A1,699 to $A12,990, effective from Tuesday, April 11.
“We are pleased to announce that due to continued improvements in the cost of goods, freight and logistics as well as ongoing consistent supply, we are able to reduce the cost of Powerwall by a further $A1,699,” the email said.
The new price will be applied to all existing purchase orders that have yet to be delivered. The price includes GST, but not installation.
Tesla previously reduced the price of the Powerwall battery by $1,600 in late February, when it also cited improvements along the supply chain. That was the first price cut in at least two years and the reduction this year now total more than 20 per cent.
The latest price fall could be welcomed by households looking to save more money by using more of their rooftop generated power – and as the threat of solar export tariffs looms.
The cost of home energy storage – which many had hoped would follow a similar price trajectory to rooftop solar over the years – has suffered from a combination of huge battery demand coming from the EV sector and a supply crunch exacerbated by wars and pandemics.
Tesla has openly prioritised the supply of batteries to its EV division, as well as for its larger-scale Megapack batteries that are being used in grid-scale energy storage systems around the globe. But it is now opening new Mega factories for grid-scaled storage, which in turn is freeing up resources for the household market.
Giles Parkinson is founder and editor of One Step Off The Grid, and also edits and founded Renew Economy and The Driven. He has been a journalist for 35 years and is a former business and deputy editor of the Australian Financial Review.
