Tesla no longer offers 10 kWh Powerwall home battery on its website and press kit as it doesn't economically makes sense.
Tesla Motors has quietly deleted every reference to its 10kWh residential battery from its Powerwall website and press kit. The smaller battery of the American company made for regular cycling is the one that has only remained.
Initially, the change was made without elaboration, which led to speculations by industry insiders. On March 18, 2016, a representative of Tesla confirmed the 10kwh battery would no longer be offered.
The 10kwh battery was promoted as a backup energy supply capable of powering 500 cycles. It was offered at a price of $3500 to installers. The automaker was angling to deliver the battery to consumers interested in uninterrupted power supply when the energy grid stops working, such as experienced during a storm Sandy storm.
The problem is that the lithium-ion backup battery is economically not attractive. Even at the low wholesale price charged by Tesla, the battery does not look comparatively better than its alternatives; especially if the costs of inverter and other systems are included. High-tech backup generators offered by companies such as Cummins and Generac are sold at a price of $5000 or less. These companies also provide financing, which leads to the removal of any advantage the company may claim by financing itself, as pointed by Jeff St John of GTM.
In California, batteries can take advantage of the Self-Generation Incentive Program of the state, but regulatory bodies of California indicated that batteries should be able to cycle five times per week, which excludes the larger battery of Tesla.
Backup energy alone simply does not have a case as strong as using a battery system for the purpose of self-consumption. An analysis by GTM Research for residential storage, only for self-consumption or time-of-use shifting, revealed that economic factor pan out only in certain situations. In Hawaii, for example, under the new self-supply tariff offered by the state seems somewhat more attractive than solar power under the grid supply option.
Tesla seems to be concentrating its efforts on markets and first movers where storing for self-consumption and power arbitrage economically makes sense. Even after the removal of 10kwh option, Powerwall website has kept offering specifications for the 6.4 kwh battery of the company made for daily cycling applications, like load shifting.
The battery is warrantied for a decade, or approximately 5000 cycles, with 100% depth of discharge. It is offered to installers at a wholesale price of $3000. The smaller battery is often promoted as 7kwh, which would seem to be offered at a price of $429 per kwh. Actually, it is 6.4 kWh battery offered a price of $469 per kwh.
A cheaper integrated battery could earlier be included to Tesla lineup. In January 2016, CEO Elon Musk announced new Powerwall option to be launched this summer.
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