Tesla’s solar battery, called the Powerwall, is a rechargeable lithium-ion battery that stores excess energy created by solar panels. The new Powerwall 3 is the successor of the recently discontinued Powerwall 2 solar battery. Both models have the same 13.5kWh storage capacity but the Powerwall 3 boasts improved features and greater continuous power output. This article explains how a Tesla solar battery works, a comparison between the Powerwall 2 and 3, costs, rebates, and pros and cons to decide if a Tesla solar battery is the right choice for you.

How the Tesla Solar Battery Works
The newest Tesla solar battery, the Powerwall 3 stores excess electricity generated by solar panels. The Powerwall 3 works in stages from the solar panels capturing sunlight and converting to energy through to storage and distribution.
- Solar panels capture sunlight: The solar panels capture the sunlight and convert it to DC (direct current) electricity.
- Inversion: The built-in solar inverter in the Powerwall 3 converts the electricity from DC electricity to AC (alternating current) electricity to be used in the home.
- Storage: The excess energy is stored in the solar battery and then used when the sun is no longer shining.
Features of the Tesla Solar Battery
The Tesla Powerwall Solar Batteries have a variety of extra features that make them stand out, from small and compact design to the Tesla app for monitoring and managing the systems performance and energy use. The main features of Tesla Solar Batteries are:
- Compact design: Tesla Solar batteries are small, compact and sleek from the original Powerwall 1 to the current model. The slimline design was a major advancement in solar battery size compared to traditional bulky battery setups. The Powerwall 3 measures approximately 1099mm (H) x 609mm (W) x 193mm (D) and offers significant energy capacity for medium to large homes.
- Tesla app integration: This is a mobile application for managing Tesla energy products including Tesla solar batteries. It allows monitoring of real-time energy consumption and production. Users can access their system’s performance via an app.
- Backup power: Tesla Solar batteries provide seamless, whole home backup to essential appliances within the home in the event of a power outage or disruption. They have strong backup power capabilities that can be zoned to part of the home or the whole home. For effective backup power, there must be a dedicated backup circuit through an MPPT tracker, which can be done but is not built-in as only APstorage and Enphase are built-in.
- High power output: Tesla solar batteries have a particularly high power output compared to their competitors. The Powerwall 3 has a power output of 11kW which is higher than most home batteries available today.
Differences between the Powerwall 2 and 3

While the Powerwall 2 is no longer available, it is still a viable solar battery for those who already have one installed. To decide if you want to upgrade to the Powerwall 3 or purchase the new Tesla battery, here are the main differences.
Inverter integration
- Powerwall 2: This battery is AC coupled which means it requires a separate solar inverter to convert AC electricity to DC electricity.
- Powerwall 3: The newest version has an integrated hybrid inverter built into the system. This eliminates the need for a separate unit and makes it an all-in-one system. This streamlined setup reduces installation complexity and time and potential compatibility issues.
Battery chemistry
- Powerwall 2: The battery chemistry of the Powerwall 2 is Lithium Nickel Manganese Cobalt Oxide (NMC). This type of battery requires consistent management and a low life cycle. They are capable of fewer full charge and discharge cycles before significant degradation. The cobalt oxide makes them less stable and more prone to overheating.
- Powerwall 3: The Powerwall 3 uses an upgraded battery chemistry, Lithium Iron Phosphate (LFP). This cobalt free chemistry is known for advanced safety, longer lifespan and more charge and discharge cycles. It has greater stability against temperature changes and is more sustainable, made from less toxic materials.
Power output
- Powerwall 2: The Powerwall 2 offers 5kW of continuous power output which is sufficient to handle standard household appliances.
- Powerwall 3: The upgraded version of the Tesla solar battery, the Powerwall 3 has a significantly larger power output of 10 to 11.5kW which enables it to power much higher demand appliances.
Compatibility
- Powerwall 2: Before it was discontinued, the Powerwall 2 could be added to any existing solar system.
- Powerwall 3: The Powerwall 3 is the most compatible with new installations because of the built-in inverter system. It can be added to existing solar systems, however it will depend on the current solar setup and inverter size. The Powerwall 3 is not compatible with the Powerwall 2 so you can not add the new solar battery to the existing Powerwall 2 for expansion.
Tesla Powerwall 2 and 3 Side by Side Comparison
| Powerwall 2 | Powerwall 3 | |
| Energy capacity | 13.5kWh | 13.5kWh |
| Backup power | Yes | Yes |
| Continuous output | 5kW | 11.5kW |
| Size and weight | 1150 x 753 x 147 mm
114kg |
1099 x x 609 x 193 mm
124kg |
| Inverter | Separate | Integrated |
| Blackout protection | Yes | Yes |
| Warranty | 10 years | 10 years |
History of the Tesla Solar Battery
Tesla introduced their first solar battery, known as the Powerwall 1, in 2015. As innovators in the electric vehicle (EV) market, Tesla leveraged their existing electric vehicle battery storage to use for energy storage in 2012. It featured a 6.4 kWh capacity and a 3.3 kW power output. The original Powerwall 1 was designed for solar self-consumption and backup power. It relied heavily on Tesla’s EV battery technology. The Powerwall 2 was introduced in 2016 with advanced technology and features. It used a larger 2170 NMC lithium battery with greater energy density. Its storage capacity was 13.5kW and boasted a continuous output of 5kW. By 2024, a new model was released, the Powerwall 3. With an integrated solar inverter and increased power output of 10kW compared to 5kW, the Powerwall 3 was far superior technology. The design featured a more elegant, streamlined look with a glass front plate with the Tesla logo.
Tesla Solar Battery Cost
The Powerwall 3 is the only Tesla solar battery on the market and retails for around $15,000 fully installed. On the Tesla website, the powerball battery unit alone is $11,200. As a comparison, the price of the Powerwall 2 was between $11,900 and $13,900 fully installed.
Tesla Solar Battery Cost with Solar Battery Rebates and Government Incentives
The overall cost of installing a Tesla solar battery can be reduced with solar battery rebates. The Federal government initiative can help save up to 30% on the cost of solar batteries, potentially saving you $3,720 for an average-sized battery or $4,500 for a Tesla Powerwall 3. The rebate operates through the Small-Scale Renewable Energy Scheme and is based on the creation of Small Scale Technology Certificates (STCs) which each represent a monetary rebate.
Eligibility requirements for the rebate include:
- Battery system must be new
- Total capacity of between 5kW and 100kW
- Must be installed with a new or existing rooftop solar system
- Must be listed on the Clean Energy Council approved product list
- Must be installed by an accredited installer
Functions of the Tesla Solar Battery App

The Tesla app is downloaded from the Google Play store or Apple app store to a mobile phone or tablet. It allows remote access to the functions and performance of the solar battery. The functions of the Tesla solar app are:
- Monitoring energy consumption
- Track the state of charge of the Powerwall battery and how much energy is stored
- Monitoring the grid connection
- Accessing data and insights
- Managing settings
Tesla Solar Battery Warranty
The Tesla Powerwall 3 comes with a warranty that is dependent on the solar battery’s connection to the internet. For the ten-year warranty to be valid, it must be reliably connected to the internet to allow Tesla remote firmware upgrades. The 10 year Powerwall 3 Tesla Warranty includes:
- Cover of product defects in materials and workmanship
- Energy capacity guarantee of at least 70% of original capacity after 70 years
- Unlimited charge cycles during the warranty period
- Cover of cost of labour and repairs during warranty period
Pros and Cons of Tesla Solar Batteries – Powerwall 2 and 3
While Tesla solar batteries are a popular choice for solar energy storage, it is important to examine pros and cons to see if this type is right for you.
Pros
- High power output
- 100% depth of discharge
- DC coupling
- Water resistant
- Sleek design
- Reliable backup power
- User friendly app
Cons
- Expensive upfront cost
- Large minimum size of 13.5kW
The Tesla Solar battery is generally considered a high performing and technologically advanced solution for solar power storage. It has become a popular choice for those looking to install a backup solution for their solar energy. Its slightly elevated price range is justified by many customers because of its high performance and advanced features. Our guide explains what a Tesla solar battery is, how it works, cost, pros and cons to help you decide if the Tesla Powerwall 3 is the battery for your solar system. For further information contact the team at Tasmanian Safer Solar.






