Tesla Powerwall with solar PV can be a cheaper source of energy than the grid for several Australians
Last month, Tesla Motors Inc (NASDAQ:TSLA) launched its second-generation Powerwall. The automaker has doubled the energy capacity of the residential storage system and offers it with an in-house inverter for $5,500 compared to $3,000 for the Powerwall 1.0.
Tesla has already received Greentech Media’s blessing for the Powerwall 2.0. RenewEconomy reported that the technology along with solar photovoltaic (PV) has become cost-competitive with the grid in Australia after the company halved the price per kWh of its storage system.
Using MarkIntell’s data, the publication assumed that a typical household in Adelaide, South Australia, consumed 4,800kWh per year. The electricity bills of such homes are either the average of market offers after conditional discounts in 77 markets or the average market offers before condition discounts in 77 markets, according to 16 utilities in the city.
It took median installed price of a 5kWh system from data of Solar Choice and assumed a life of 20 years with zero residual and 20% purchase premium for continuous maintenance. For the battery, it took into account installed price of AUD $10,300 ($7,800) with a life of 10 years with zero residual.
The platform computed 8,373 kWh of annual solar production, 200kWh of grid purchases and 3,773 of annual solar PV export to the grid. Using all these realistic assumptions and annualizing the capital items at 2%, it was clear that the annual charge from solar PV along with battery storage and the grid was less than the average grid market offers of both before and after conditional discounts.
Here’s a chart that summarizes the results:
Thus, a typical house in the suburbs of Adelaide can fulfill their energy requirements by using solar and storage products for less than the amount they would pay on the grid’s competitive offer.
Australia is arguably the most important market for Tesla Energy and Tesla Solar but clearly not for its electric cars, which are still not accessible for the mass market. With high electricity rates and frequent outages, many Australians are moving towards renewable sources like solar PV and battery storage.
Last month, Tesla Energy installers in Australia reported that the Powerwall demand surged by 30 times in the country following a series of blackouts in Southern Australia.