Tesla Powerwall 2 is completely dominating the US home energy storage market: report

(Credit: nathanwoodgc /Instagram)

A recently-published report from EnergySage, an online comparison-shopping marketplace for rooftop solar and energy storage systems, has revealed something quite incredible. Despite Tesla Energy’s understated ramp, the Powerwall 2 has actually been dominating the United States’ residential battery storage market — and the competition is not even close. 

Tesla Energy’s domination is due in no small part to the Powerwall 2’s pricing, which makes it the least expensive storage option on a per-kWh stored basis. 

The findings about Tesla’s humble residential battery unit were shared by EnergySage in its eleventh semiannual Solar Marketplace Intel Report, which covers the 12-month period from July 2019 to June 2020. This time around, the company decided to look into transaction-level battery storage data from its Solar Marketplace. These included information about energy storage solutions that are usually being quoted to homeowners. 

(Credit: EnergySage)

Based on EnergySage’s report, over half of the battery storage quotes in the platform included a Tesla Powerwall. This made Tesla’s humble residential battery unit the most-quoted battery storage option in the platform by a wide margin. 

As noted in a report from PV Magazine USA, part of the reason behind the Powerwall 2’s domination of the energy storage segment is Tesla’s aggressive pricing, which undercuts competitors to a significant degree. On a cost per kWh stored basis, Tesla offers the cheapest battery storage option in EnergySage’s Marketplace, with its strongest competitor, LG Chem, offering alternatives that are over 30% more expensive. Other competitors are far more disadvantaged against the Powerwall 2 on a cost per kWh basis. 

“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 may be Tesla’s most humble battery storage unit, but it holds a lot of potential. Boasting an integrated DC/AC converter, off-grid capabilities, and mobile app support, the Powerwall 2 has all the elements of a classic Tesla product. The battery unit, just like the company’s electric cars, receives over-the-air updates, optimizing its performance and adding new features. Among these is Storm Watch, which maximizes energy storage during inclement weather and other conditions that may threaten the power grid. 

EnergySage’s full Solar Marketplace Intel Report could be accessed below. 

EnergySage SolarMarketplace Intel Report H22019 H12020 by Simon Alvarez on Scribd

Simon Alvarez: Simon is a reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday.
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