Tesla Powerwall 2 vs 3 – Side By Side Comparison (2024)

Following months of speculation, the Tesla Powerwall 3 was officially released to the Australian market on August 16, 2024.

The Powerwall 3 is the third iteration of Tesla’s hugely popular home battery storage system, designed to provide greater energy efficiency, larger storage capacity, and improved integration with solar power setups.

While Tesla hasn’t made any announcements yet about the future of the Powerwall 2 unit, it would seem likely that it will be discontinued in the coming months as production of the Powerwall 3 continues to ramp up.

For would-be buyers weighing up the Powerwall 2 and 3, now is a good time to look at a side-by-side comparison between the two units highlighting new features and changes to specifications.

Table of contents:

Powerwall 3 overview and pricing

• Release date: August 2024
• Powerwall cost: $11,900
• Gateway cost: $1,700
• Total price: $13,600*

The Tesla Powerwall 3 is $1,500 more expensive than the outgoing Powerwall 2.

*These costs do not include delivery, installation, or other costs and fees

Powerwall 2 vs 3 – side by side comparison

Power output

• Powerwall 2: 5kW
• Powerwall 3: 11.5kW
• Winner: Powerwall 3

The biggest improvement between the Powerwall 2 and Powerwall 3 can be seen in the increased power output figures. Tesla’s new Powerwall 3 delivers up to 11.5kW of continuous power – more than double the 5kW figure we saw from the Powerwall 2.

It’s worth noting that while the Powerwall 3 can deliver up to 11.04kW of continuous power, local DNSP regulations mean that the inverter must be capped at 10kW – which still provides exactly double what we saw from the Powerwall 2.

The increased power output between the Powerwall 2 and Powerwall 3 means that homeowners can now rely on batteries for more intensive tasks, including:

• Charging of electric vehicles – standard wall mounted EV chargers are rated at 7kW
• Running larger appliances like air conditioners and HVAC systems during power outages
• Run multiple high-consumption home appliances without exceeding the battery’s power limits

Compatibility

• Powerwall 2: Compatible with Powerwall 2 & Powerwall+
• Powerwall 3: Compatible with Powerwall 3
• Winner: No Winner

Per the Tesla website; “Powerwall 3 cannot be added to a Powerwall 2 or Powerwall+ system”.

While there are rumours that Tesla will introduce backwards compatibility in 2025, there is no official confirmation at this stage.

The addition of an integrated solar inverter is the biggest change between the Powerwall 2 and 3 units. While Powerwall 2 owners require a separate inverter to convert DC (Direct current) to AC (Alternate current), the Powerwall 3’s built-in inverter allows direct connection to solar panels.

Modularity / scalability

• Powerwall 2: Up to 10 batteries – total 135 kWh
• Powerwall 3: Up to 4 batteries – total 54 kWh
• Winner: Powerwall 2

While the Powerwall 2 and 3 units are the same size, coming in at 13.5 kWh, the Powerwall 2 is more “stackable” than the Powerwall 3.

The Tesla Powerwall 3 allows for up to four Powerwall 3 batteries to be installed for a total energy storage capacity of 54 kWh. Comparatively, the Powerwall 2 allows for up to 10 Powerwall 2 batteries to be installed for a total (usable) storage capacity of 135 kWh.

Considering the average Australian household uses around 16 kWh per day, most homeowners are unlikely to benefit from the maximum 135 kWh storage capacity that could be achieved by installing up to ten Powerwall 2 batteries. Usage patterns aside, the high upfront cost of each Powerwall battery makes this option impractical for most households.

Round-trip efficiency

• Powerwall 2: 90% round trip efficiency
• Powerwall 3: 97.5% round trip efficiency
• Winner: Powerwall 3

Efficiency numbers for solar batteries are typically measured in a round-trip figure which refers to the amount of electricity that can be transferred to and from the battery without being lost (usually as a result of heat).

The Powerwall 3 is 8.3% more efficient than the Powerwall 2 with a roundtrip efficiency rating of 97.5% compared to 90%.

Cost

• Powerwall 2: $10,400
• Powerwall 3: $11,900
• Winner: N/A – new functionality means this is not a direct comparison

We’re not going to call a winner on this one. The Powerwall 3 now features a built-in hybrid inverter, which used to be a separate unit on the Powerwall 2, so it’s not a like-for-like comparison.

The new design of the Powerwall 3 now makes it easier to install and means that solar power can be sent directly to the battery through the hybrid converter without needing to be converted. When the home starts to draw power from the battery, the hybrid inverter will convert the generated DC power into usable AC power.

For home owners starting from scratch, the integration of an inverter into the Powerwall 3 unit makes it an appealing proposition. Conversely, homeowners looking to add to the Powerwall 3 to an existing battery and inverter setup would need to replace or reconfigure their existing setup – which may not be the most economical option.

Battery technology

• Powerwall 2: Lithium-ion
• Powerwall 3: LFP (Lithium Iron Phosphate)

The Powerwall 3 uses LFP batteries (Lithium Iron Phosphate) to replace the Lithium-ion batteries that are used in the Powerwall 2. LFP batteries found in the Powerwall 3 are cobalt-free which makes them less likely to overheat.
Additionally, LFP batteries offer a longer lifespan than Lithium-ion batteries which means that they can sustain more charge cycles before significant degradation sets in.

Tesla offers a 10-year, unlimited cycle warranty on both the Powerwall 3 and Powerwall 2 units with a promised energy retention of 70% during this period.