How Much Is A Tesla Battery? (Car Batteries & Powerwall)

With an unbeatable lineup of high-performance, robust, and feature-packed electric cars, home energy storage, and batteries, Tesla has become a household name in eco-friendly energy space.

But the real question is how much is a tesla battery? As of today, you may have to shed up to US$5900 (excluding the installation charges) for every Tesla battery. The price is even more steep for Tesla Powerwall which can cost you anywhere between $8500 to $16000.

Today, Tesla manufactures and delivers solar panels, home energy storage solutions, electric cars, and a variety of environmentally friendly energy products in more than 25 countries around the world. However, one of the company’s core products is the battery.

You may hear about Tesla batteries and the fact that they are much more advanced than other brands. But the real question is, how much is a tesla battery and if it is really that expensive?

Many people consider Tesla batteries outrageously costly and prefer to use batteries from other companies. However, the quality that Tesla maintains is unbelievable.

This is Why Tesla Batteries Are Expensive

Before we understand why Tesla batteries are expensive, it would be wise to go back a few years when the company launched its first all-electric car.

Tesla promised that its all-electric car would reduce the dependency on fuel. The cars would run on rechargeable batteries that users only had to charge when they were not using the car.

While this seemed a decent proposal, people soon found out that the price of the cars was excessively high. Most middle-class people couldn’t afford Tesla cars, the all-electric ones of their high price.

The frequent complaints led the authorities to work with battery manufacturers so that they could improve efficiency and cut down costs. However, the battery companies didn’t want to budge. They had Tesla looking down the end of a gun barrel about to blow up.

It was during this time in 2015 that Tesla decided to make its batteries. It came out with an all-new line of residential and commercial batteries known as the PowerWall series.

In today’s market, you will pay US$5900 for each Tesla battery, which excludes installation fees, taxes, and any other connection or retailer fees, making it the most expensive residential battery on the market.

Why Tesla Car Batteries Are Also Expensive?

One of the reasons why the all-electric cars are expensive is because of their rechargeable batteries. People hardly use alkaline batteries these days. The industry moved on to lithium-ion batteries a decade ago because of the rising demand for rechargeable batteries.

Whether it is for smartphones, mp3 players, torches, etc., people don’t want to use batteries that would only last a few days. With the changing circuits and microchips, there was a demand to upgrade lithium-ion batteries as well. However, the progress was slow.

If you see the construction of modern smartphones, you will notice the battery taking up most of the space. The other parts are relatively smaller, requiring only about an inch or two to fit. Moreover, the heavier the battery, the longer it will last.

But phone companies can compromise on other features like processor, internal memory, and things like that to compensate for the cost of the battery. Tesla cannot. The battery is one of the significant parts of an electric car. That leads to a compounded problem because cars usually run on a series of battery packs connected to wheels.

When Tesla came up with its flagship electric car, the Model S, it consumed nearly 60 kilowatt-hours of electrical capacity. Can you imagine the cost of a battery is needed to run the car?

According to Tesla, 42.5% of the price of the car, which is approximately $35,000, directly belonged to the batteries. That is a magnanimous figure, considering the budget of middle-class families.

Most importantly, lithium is more suited for smaller gadgets like smartphones, tablets, and similar other appliances. When it comes to all-electric cars, it becomes unstable. That is why Tesla needed to be extra careful so that they could avoid accidents or damage to the batteries.

Even the slightest hint of water or moisture can make lithium batteries burst into flames. So, they had to take added precautions to make sure that the batteries are properly secured and sealed. This added to the cost of the overall batteries.

Powerwall Price Range

Many people question that when a company is developing its own batteries, why can’t they cut down costs on other sections to make electric cars affordable? You will be surprised to know the breakdown of PowerWall batteries.

Back in 2018, Tesla’s PowerWall 2.0 had a price of $5900. This was excluding installation costs. The raw battery itself had a price of $5900. To make it usable, the company had to spend another $700 on hardware, taking the total cost to $6600. Apart from this, you also have to consider the installation costs that ranged between $2000 and $8000.

So, if someone wanted to install a PowerWall as their solar-plus-storage system, much like solar cells to store solar energy, they would look to pay $8500 to $16000, depending on the equipment and location. Economists believe that installing a solar-plus-storage system is beneficial in the long run and would be a worthwhile investment.

It would cut down electricity costs and would help to boost the economy to a great extent. However, there are not many middle-class families who can afford to spend $8500. That’s the biggest challenge that these batteries face.

How Does Powerwall Work?

Considering that you don’t want to buy an all-electric car because of the high cost, would you rather install a solar-plus-storage system in your house?

For those who usually have high electric bills every month, this may come as a welcome change. Tesla’s Powerwall is made keeping the regular use of average electricity in mind. You can pair this system with your home solar panel unit.

Depending on the intensity of the sun’s rays, the solar panels produce more electricity than your house needs. You can’t just ignore the excess electricity. That’s where the solar-plus-storage system comes into play. It can store the excess electricity produced by the solar panels instead of sending it to the electricity grid.

There is no guarantee that the intensity of the sun’s rays would remain consistent throughout the year. When the panels can’t produce enough electricity, the solar-plus-storage system can provide the stored electricity.

Many families also take this opportunity to sell excess electricity. This can become a way to earn back the money you spent on the solar-plus-storage system.

If you are confident that the amount of electricity the solar panel produces is enough for your home, you can make the most of the solar-plus-storage system from Tesla.


There is a significant demand for electricity in the early morning rather than during the day. You can make the most of this situation and make your investment work as a means to earn a significant ROI.

1. How Powerwall Works – Tesla