Tesla Powerwall 2
Buyers Guide

In late 2025, the Tesla Powerwall 2 was discontinued in Australia. Tesla didn't seek renewal for its appearance on the Clean Energy Council's 'Approved batteries' list.

The Powerwall 2 was also subject to a battery recall in September 2025.

The good news is that the Tesla Powerwall 3 - a new and improved version of the Powerwall 2 - is available and free of any issues.

Since its Australian launch back in February 2017, Tesla has commanded a sizeable portion of Australia’s residential battery storage sales. As of January 2026, the Tesla Powerwall 3 remains one of the best home battery storage systems on the market.

Tesla Powerwall 2 recall

In a product safety notice published on 16th September 2025, the Australian Competition and Consumer (ACCC) issued a recall on selected Tesla Powerwall 2 units.

The concern is that 'Tesla has identified certain lithium-ion battery cells from a third-party supplier in a subset of Powerwall 2 systems that may fail and overheat'.

Some issues of minor damage had been reported to Tesla, but importantly, no injuries.

Check if your battery is part of the recall

Tesla has reportedly been able to discharge the affected batteries remotely. However, you can check if your unit is part of the recall via the Tesla App.

In addition to the App notification, a certified Tesla installer will make contact via phone or email.

Affected batteries replaced at no cost

According to Tesla, any batteries subject to recall will be replaced at no cost.

For full details on the issue, you can visit the Tesla Powerwall 2 replacement webpage.

Powerwall 2 overview

The Powerwall 2 is a single-phase, AC-coupled battery that can connect to your home's electrical system separately from solar panels and work with almost any existing solar inverter.

Debuting in 2016 as a replacement for the short-lived Powerwall 1, the 13.5kW Powerwall 2 quickly became the benchmark for home battery storage, setting the standard that other manufacturers have tried to match.

Lauded for its futuristic styling, rock-solid performance, and seamless integration with most existing residential solar systems, the Powerwall 2 continues to be a sound battery for consumers that have installed one.

Its reliability, ease of use, and ability to provide backup power during outages have set it apart in an increasingly crowded market.

Tesla Powerwall 2 specifications

The table below outlines all of the specifications of the Tesla Powerwall 2 battery.

Tesla Powerwall 2 pricing trends

The Tesla Powerwall 2 launched in Australia in February 2017 with an introductory price of $9,600, which did not include installation. Since then, prices have fluctuated significantly.

Just like Tesla’s car prices, the cost of the Tesla batteries has fluctuated in line with a range of different factors such as global supply chain, material costs, as well as the various state and now federal battery rebates and incentives.

Powerwall 2 prices peaked back in October 2022 at around $16,500 as inflation in lithium and supply shortages took their toll.

Following the launch of the Powerwall 3 in August 2024, Powerwall 2 prices steadily crept back to launch prices of $9,000 - $10,400 for the unit only. The cost to have a Powerwall 2 installed was closer to $15,000. Since the inception of the battery rebate, the price of solar batteries in Australia has dropped significantly.

Powerwall 2 pros & cons

Despite the recent recall, the Tesla Powerwall 2 remains one of the best batteries due to its reliability, performance and ability to provide backup power.

Pros

• Strong Performance - 13.5 kWh of usable storage capacity and 5 kW continuous (7 kW peak) output.
• Reliable – 10-year warranty and proven low degradation over time.
• Compatibility – the Powerwall 2 is an AC-coupled unit which works with most existing solar systems.
• Effective backup power - Provides near-instant (~1-second) battery backup during power outages.

Cons

• Price – Despite later price drops, the Powerwall 2 remained at the high end of the market in terms of price.
• Single phase – While it can be used in a 3-phase home, the Powerwall 2 does not produce a 3-phase output.
• Size – Weighing in at 114 kg and with large H x W x D dimensions makes the Powerwall 2 one of the larger units for its output.

Powerwall 2 discontinued

Tesla is no longer continuing supply of the Powerwall 2.

For existing Powerwall 2 owners and those looking to purchase a new Powerwall 3 in 2026, discontinuation of the Powerwall 2 is unlikely to cause any real issues. Tesla's 10-year warranty on the Powerwall 2 remains in place, which means that units are still covered for repairs and replacements under warranty for the lifespan of the battery.

Buyers interested in purchasing a Powerwall must now choose the Powerwall 3.

Tesla Powerwall 2 alternatives

After eight years and two generations, the Powerwall 2 was one of the best battery storage options on the market.

In that time, brand sentiment towards Tesla has shifted dramatically (and continues to do so), and we’ve seen an influx of newer and cheaper options enter the market. So, for buyers that may be considering a Powerwall, what are the other options? We’ve compiled three of the most popular alternatives to the Powerwall 2 below with specs and pricing information.

Wrapping up the Tesla Powerwall 2

The Powerwall 2 was available in Australia for almost eight years. During this time, the market was flooded with a whole host of new, cheaper alternatives from new and existing manufacturers. Despite increased competition, the Powerwall 2 continued to be a popular choice for those looking for a home battery.

For Tesla devotees, there are not many differences between Powerwall 2 vs 3, but the Powerwall 3’s integrated inverter and higher power output at a similar price point will likely appeal to homeowners.

Buyers interested in the now discontinued Powerwall 2, should shift their focus to the new and improved Powerwall 3. Tesla will continue to honour the 10-year warranty of the Powerwall 2 which guarantees 70% of its usable capacity at the end of the warranty period.