Tesla Powerwall 2 Prices
Everything You Need to Know

While the price of coal and gas surge, solar prices go the other way. Here’s why.

1. Solar supply chains have stabilized: While Covid-19 threw much of the world’s economy out of alignment, things have largely returned to normal in the solar supply chain. Many of the materials backlogs have cleared – from the chips used in solar inverters to materials like EVA (which keeps water out of a solar module), driving down solar system prices for installers and homeowners.
2. Raw materials are getting cheaper: The solar industry has been facing high raw materials over the last 12 to 18 months, particularly key ingredient polysilicon. Polysilicon prices were up around $40/kg in mid-2022, but have since halved to around $20/kg in January 2023. Analysts BloombergNEF expect prices to keep falling toward the 15/kg mark. The polysilicon price is generally the key driver in solar panel prices, so things are looking good for cheaper rooftop solar systems.
3. Battery makers are bulking up: With demand rising fast, the manufacturers of solar batteries are building new factories like never before. At its Investor Day event in early March, EV and Powerwall battery maker Tesla demonstrated how quickly it can bring new factories online ­– its new factory in Shanghai took a little over 9 months to construct and ramp up. Tesla also reported a four-fifths reduction in the amount of factory space needed to build batteries. And the company is even going to start producing its own lithium at a new facility in Texas. Expected to be operational within 12 months, the new Tesla lithium refinery won’t be alone for long. Tesla announced plans for a cathode manufacturing facility next door. With this kind of speed, efficiency, and now vertical integration, the result is lower Tesla battery costs.
4. Less battery competition from EVs: While the number of EVs being sold increased from 300,000 in February 2021 to 600,000 in February 2022, there has been steep short-term decline in sales. Analysts Rystad Energy report that around 670,000 EVs were sold in January 2023, almost half the month previous. This means that in the short term more lithium-ion batteries will be available for solar batteries – further driving down residential battery prices.

The result is a rather compelling picture. While electricity prices for homeowners are hitting new highs, the costs for solar and batteries are heading in exactly the opposite direction.

There truly has never been a better time to install a solar system on your home, and now the economics of adding a battery to your system is on your side. And when the big bills come to those who didn’t take this golden opportunity, you’ll be laughing through the night under solar-powered lights.

Given the present configuration of the electricity market, many consumers who rely solely on energy retailers find themselves unable to exercise control over their electricity expenses and prevent unjustified price hikes. While attempting to scout for better deals is an option, and some state governments are actively promoting this approach, the availability of electricity retail offers remains quite limited.

However, if you invest in a top-tier rooftop solar system including a Tesla Powerwall 2 for your home today, you can shield yourself from price surges for the entire 20-plus-year operational lifespan of the system. By maximizing your roof’s capacity, electrifying your heating and cooktops, and venturing into electric vehicles, you can assume command over your energy supply and safeguard yourself against the energy consequences of international conflicts and outdated market regulations.

There’s an added benefit: by installing rooftop photovoltaics (PV) and integrating a residential solar battery, you become a vital component of the solution, pushing prices lower for your neighbors and the community in the long run.

In its most recent report, the regulatory body, the AER, highlighted that record-breaking levels of solar electricity generation were instrumental in reducing wholesale prices. It revealed that solar power’s contribution to Australia’s energy grid escalated by 22% during the first quarter of 2023 compared to the previous year, and by 11% from the fourth quarter of 2022, which was already a historic high.

The AER report also underscored the remarkable output from rooftop solar installations, noting, “Due to this robust solar output, the first quarter of 2023 also experienced an all-time high number of instances of negative prices, exerting downward pressure on overall energy prices.”