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 to compare Powerwall with backup generators.
The company claims that when combining 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 Powerwall 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 Powerwall is cheaper than a generator after accounting for the savings that come with solar and the cost of fueling the generator.
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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