A recently released EnergySage report on online comparison-shopping marketplace for rooftop solar and energy storage systems revealed something remarkable. The Powerwall 2 is currently dominating the U.S. residential battery storage market despite the understated ramp of Tesla Energy, and the rivalry is not even close.
The dominance of Tesla Energy is due in no small part to the pricing of Powerwall 2, which makes it the least costly storage solution on a per-kWh basis.
In its eleventh semi-annual Solar Marketplace Intel Report, which covers the 12-month period from July 2019 to June 2020, EnergySage shared the findings about Tesla’s humble residential battery product. This time around, the company wanted to look at transaction-level battery storage data from its Solar Marketplace. These included data about solutions for energy storage that are typically quoted to homeowners.
Tesla Powerwall was included in over half of the battery storage quotes on the site. This made the humble residential battery unit of Tesla the platform’s most-quoted battery storage choice by a broad margin.
As noted in a PV Magazine USA article, part of the reason behind the dominance of the energy storage market by Powerwall 2 is Tesla’s aggressive pricing, which significantly undercuts competitors. Tesla provides the most affordable battery storage option in EnergySage’s Marketplace on a cost per kWh stored basis, with its strongest rival, LG Chem, providing alternatives that are more than 30 percent more expensive. On a cost per kWh basis, other rivals are even more disadvantaged compared to the Powerwall 2.
“To date, the two most widely quoted storage brands on the EnergySage Marketplace are Tesla and LG Chem, in line with installation data from California’s Self Generation Incentive Program (SGIP) over the last few years. Presently, over half of all quotes on EnergySage are for the Tesla Powerwall 2. Looking at installed costs, Tesla is also the lowest cost offering on a dollar per kilowatt-hour ($/kWh) basis. Interestingly, two companies who use lithium iron phosphate (LFP) battery chemistries–Enphase and sonnen–see the highest $/kWh costs in the Marketplace,” the report noted.
The Powerwall 2 might be Tesla’s humble battery storage product, but it holds a lot of promise. The Powerwall 2 has all the elements of a classic Tesla product, with an integrated DC / AC converter, off-grid capabilities, and mobile app support. The battery unit receives over-the-air updates, optimizes its performance and introduces new features, much like the company’s electric vehicles. Storm Watch is among these, which maximizes energy storage during bad weather and other situations that may affect the power grid.
The full Solar Marketplace Intel Report from EnergySage can be accessed here.
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