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Tesla increases the price of Powerwall again

Tesla has increased the price of Powerwall, its home battery pack, again – the second time in just a few months.

Tesla Powerwall Demand is Crazy

Back in 2015, Tesla decided to use its expertise in making battery packs for electric vehicles to produce energy storage devices for homes and businesses by launching the Powerwall and Powerpack.

Powerwall became extremely popular with residential solar customers, people looking to have backup power, and even with virtual power plant projects more recently.

As we recently reported, Tesla Powerwall is becoming extremely hard to get as demand increases due to home battery pack incentives.

California has strong incentives for installing residential energy storage capacity that has created more demand than Tesla, the market leader with the Powerwall, can handle right now.

Last year, Tesla announced that it installed its 100,000th Powerwall home battery pack.

Around the same time, CEO Elon Musk said that Tesla is working hard on increasing Powerwall production as delivery delays are getting longer in many markets.

Tesla Powerwall Price

With the demand outpacing production for a long time, Tesla has been increasing price of the Powerwall.

In October, Tesla increased the price of the Powerwall from $6,500 to $7,000.

Now, Tesla is again increasing the price of the Powerwall by $500.

The automaker updated its online configurator yesterday, and now the price of the home battery pack is $7,500 (hat tip to Risshiraj):

That’s just for the battery pack itself. Tesla also charges $1,000 for the Gateway, a device that is sort of the brain of the installation, and the actual installation cost of $3,500.

These costs have remained the same since the last price increase three months ago.

Electrek’s Take

Powerwall has quickly emerged as the No. 1 home battery pack with a growing number of sale channels.

Tesla prioritized Powerwall installations with its own solar power installation, both rooftop solar panel installations and solar roof tiles, and with those installations finally picking up for Tesla, the Powerwall is even in higher demand.

Furthermore, other solar installers, including big ones like Sunrun, are also using Tesla’s Powerwall with their solar installations.

It looks like Tesla is taking advantage of the demand to improve its gross margin on the Powerwall.

I can’t blame them – especially if they are using that money to increase production.

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