Tesla Powerwall 3 Independent Review: Price, Pros & Cons in Australia

The Tesla Powerwall 3 is priced at $11,900 AUD, with an additional $1,700 for the Backup Gateway 2, bringing the total cost to $13,600 AUD. Launched in Australia on August 16, 2024, it features an 11.04 kW power output and 13.5 kWh storage capacity, delivering 120% more power than the Powerwall 2.

This independent 2025 review compares the Tesla Powerwall 3 vs. Powerwall 2, covering price, specs, pros and cons, and answers whether or not this home battery is worth it in your specific situation.

Tesla Powerwall 3 Price in Australia (2025): Full Cost Breakdown

The Tesla Powerwall 3 is priced at $11,900. This includes the 13.5kWh battery with an integrated inverter. However, to fully operate the system, you’ll need to purchase the Backup Gateway 2 for an additional $1,700. This brings the total cost to approximately $13,600, excluding delivery and installation fees. While the Powerwall 3 is slightly more expensive than the $12,900 Powerwall 2, it offers improved features that may justify the extra cost.

The Tesla Powerwall 3 cost is heavily influenced by the built-in 11.04 kW integrated hybrid solar inverter. This on its own could cost anywhere between $2,000 and $3,500. This adds both additional cost to the Powerwall 3 but also significant value for homeowners considering investing in this solar battery system.

Tesla Powerwall 3 vs Powerwall 2

Key Differences and Considerations:

• Price: Powerwall 3 is more expensive but includes features like a built-in solar inverter and higher power output, which may justify the higher cost depending on the consumer’s energy needs.
• Power Output: Powerwall 3’s higher continuous and peak power ratings make it better suited for households with high energy needs.
• Integrated Solar Inverter: The built-in inverter in Powerwall 3 simplifies the installation process for new solar systems, reducing overall costs but is limited by a 5 kW charge rate.
• Battery Chemistry: The move to LFP chemistry in Powerwall 3 enhances safety and longevity, although it may result in slightly lower energy density.
• Scalability: Powerwall 3 offers more extensive scalability options, making it a more flexible choice for consumers planning to expand their energy storage in the future.

See the Tesla Powerwall 2 Data Sheet vs the Tesla Powerwall 3 Data Sheet & Tesla Powerwall 2 Installation Manual for more details.

When Should You Choose the Tesla Powerwall 3?

• New Solar and Battery Installations: If you’re starting from scratch with a new solar and battery setup, the Powerwall 3’s ability to handle up to 20 kW of solar panels and its integrated inverter make it an excellent choice. The simplified installation process and powerful output offer greater flexibility in managing your home’s energy needs.
• Small Solar System Upgrades: Homeowners with existing solar setups featuring a 5 kW inverter or smaller might consider the Powerwall 3. Tesla Australia claims it can integrate with current solar arrays via AC coupling. However, as this technology is relatively new in Australia, it’s advisable to proceed with caution and possibly wait for further testing results from other users.

When Should You Avoid the Tesla Powerwall 3?

• You own existing Powerwall 2 Systems: If you already have a Powerwall 2, expanding your system with another Powerwall 2 rather than integrating a Powerwall 3 might be a smoother and more cost-effective option. The Powerwall 3 is not compatible with Powerwall 2, which could lead to complications.
• You’re In A Three-Phase Homes: While the Powerwall 3 can be used in three-phase homes, it has limitations. You won’t have full three-phase backup capabilities, and your solar system may not function during grid outages if it relies on a three-phase inverter. This could be a significant drawback for homes with complex energy needs.
• You Want it for Off-Grid Applications: For those living off-grid or planning to do so, the Powerwall 3 isn’t fully optimized for off-grid use in Australia. Tesla has not released full off-grid functionality for this model, and future updates remain uncertain.

Tesla Powerwall 3 Features & Specifications: What’s New in 2025?

Power Output

The Tesla Powerwall 3 specifications offer a major power upgrade, with a maximum continuous discharge of 11.04 kW—more than double the 5 kW capacity of the Powerwall 2. This 120% increase allows the Powerwall 3 to handle high-energy appliances like air conditioners and heat pumps, making it highly effective during power outages.

Storage Capacity

The Tesla Powerwall 3 offers 13.5 kWh of storage capacity. If your household uses 20-25 kWh per day, a single Powerwall 3 can deliver 6 to 8 hours of power during an outage. Actual battery backup system duration depends on your specific energy usage and consumption habits.

Integrated Solar Inverter

One of the most notable features of the Powerwall 3 is the inclusion of a built-in solar inverter, capable of supporting up to 20 kW of DC solar input. This feature simplifies installation for a new solar and battery system by reducing the need for extra hardware, potentially lowering costs. However, if you already have a solar system, this integrated inverter doesn’t offer you any additional benefit. 

“Round Trip” Efficiency

The Powerwall 3 offers a Solar to Home/Grid efficiency of 97.5%. If power is going via the battery (Solar to Battery to Home/Grid) the efficiency rating is 89%. These figures are comparable with many of the leading battery options on the market.

Installation & Expansion: Key Considerations

Tesla has introduced design improvements in the Powerwall 3 to make installation faster and more cost-effective, including a built-in DC isolator and reusable packaging. Additionally, Tesla plans to launch “Powerwall 3 Energy Expansions” in early 2025, allowing homeowners to expand storage capacity without significant additional infrastructure. Each Powerwall 3 can be expanded with up to three Energy Expansions, enabling a total system configuration of up to 16 units (4 Powerwall 3s and 12 expansions), providing significant scalability for growing energy needs.

Bidirectional Power Flow

The Powerwall 3 is designed to both charge from the grid and send power back to the grid, making it useful for home energy management and grid support. However, as of now, it does not support vehicle-to-grid (V2G) technology in Australia. This means it cannot use an electric vehicle’s battery to power your home or feed energy back to the grid. This limitation aligns with current regulations and Tesla’s current focus on grid-tied home energy storage, rather than integrating vehicle batteries into the home energy ecosystem in the Australian market. This functionality is likely to come into play in the future.

Dimensions, Size and Weight

Tesla has refined the Powerwall 3’s design, creating a unit that’s both slimmer and slightly heavier than its earlier iteration. The dimensions of the Powerwall 3 are 43.25 in x 24 in x 7.6 in and a weight of 287 lbs in the U.S. which translated to 1098 mm x 609 mm x 193 mm, with a total weight of 130 kg here in Australia.

Battery Chemistry

Tesla has confirmed that the Powerwall 3 uses Lithium Ferro Phosphate (LFP) chemistry, moving away from the Lithium Nickel Manganese Cobalt Oxide (NMC) used in the Powerwall 2. This change enhances safety, durability, and environmental sustainability by eliminating cobalt, a toxic and expensive component. However, LFP batteries typically have a lower energy density compared to NMC batteries.

The LFP chemistry has been widely adopted as the leading option for most solar battery manufacturers on the market. 

Can the Tesla Powerwall 3 Work Off-Grid?

The Tesla Powerwall 3 is primarily designed for grid-tied applications in Australia. While it can provide backup power during outages, it is not fully optimised for off-grid use. Tesla has not officially released full off-grid functionality for this model, and any potential future updates remain uncertain. 

Backup Gateway

The Backup Gateway or more simply the backup ‘switchboard’ ensures homeowners can maintain power during outages and effectively manage their energy use.

Some battery manufacturers have this capability built into the battery. Tesla charge an additional $1,700 for their Gateway which is a notable addition to the overall cost of the system.

Tesla Powerwall 3: Pros & Cons

Pros:

1. Integrated Solar Inverter: The Powerwall 3 comes with an 11.04 kW built-in hybrid solar inverter capable of supporting up to 20 kW of solar panels. This reduces the need for separate equipment and simplifies the installation process. 
2. Scalable Storage Solution: The Powerwall 3 introduces DC-coupled battery expansion units, allowing homeowners to expand storage capacity over time. Starting in 2025, the system will support up to 16 units (4 Powerwall 3s and 12 expansion units), offering flexible and cost-effective scalability for growing energy needs.
3. Enhanced Power Output: With a continuous power output of 11.04 kW, the Powerwall 3 can handle larger households and more demanding energy needs, supporting high-demand appliances like air conditioners and heat pumps even during outages.
4. High Peak Power Rating: The system can manage high inrush currents up to 15kW, making it ideal for starting large appliances without grid support. This is particularly useful for homes with significant energy needs.
5. Improved Installation Efficiency: Tesla has made design improvements that speed up installation and reduce costs, including the addition of a built-in DC isolator and reusable packaging. Certified installers have reported being able to complete two installations per day compared to one with the Powerwall 2.

Cons:

1. Limited Charging Power: Despite its high discharge capacity, the Powerwall 3’s charging power is limited to 5 kW. This can be a drawback if you have a large solar array or if you require faster recharging during low-cost grid electricity periods. The slower charging rate might not fully utilise the available solar generation potential, especially on days with limited sunlight.
2. Compatibility with Existing Systems: The Powerwall 3 is not compatible with the Powerwall 2, meaning it cannot be directly integrated into an existing Powerwall 2 setup. This could pose challenges for homeowners looking to expand their current systems.
3. Bidirectional Charging and V2H Integration: While the Powerwall 3 supports bidirectional power flow for grid-tied applications, it currently does not support vehicle-to-home (V2H) charging in Australia. This limits the integration of electric vehicles into the home energy ecosystem.
4. Additional Costs for Full Operation: To fully utilise the Powerwall 3, the purchase of the Backup Gateway 2 is necessary, adding $1,700 to the overall cost. This additional component is essential for maintaining power during outages but increases the upfront investment.
5. No Immediate Cost Reduction: Despite the switch to LFP battery chemistry, which is generally cheaper, the Powerwall 3’s price point remains high. Tesla’s focus on performance and durability has kept the cost comparable to the Powerwall 2, which might disappoint those expecting a more affordable option.

What Is The Warranty On The Tesla Powerwall 3?

The Tesla Powerwall 3 comes with a 10-year limited warranty, which guarantees that the battery will retain at least 70% of its original capacity over that period. This aligns with industry standards for Lithium Ferro Phosphate (LFP) batteries, known for their durability and long cycle life.

In addition to capacity retention, the warranty covers defects in materials and workmanship. Tesla also includes labour coverage for necessary replacements: $800 for a Powerwall 3 unit and $650 for the Backup Gateway 2. This coverage ensures that any major issues with the battery or essential components are addressed without significant out-of-pocket costs for the homeowner.

It’s important for prospective buyers to thoroughly review the warranty’s detailed terms and conditions. This includes understanding any maintenance requirements or usage limitations that might affect the warranty’s validity. While the Powerwall 3’s warranty offers robust protection, it’s essential to be aware of all stipulations to make the most informed decision.

See the full Tesla Powerwall 3 warranty details here

How The Tesla Mobile App Integrates With The Powerwall 3

The Tesla mobile app provides real-time monitoring and management for the Powerwall 3, allowing users to track energy production, storage, and consumption. Through the app, you can optimise energy usage by selecting different operational modes, such as prioritising backup power or maximising self-consumption.

The app’s functionality for Powerwall 3 remains largely consistent with previous models, offering features like remote adjustments and updates directly from Tesla. There are no significant new features in the app specifically tied to the Powerwall 3, so users familiar with the Powerwall 2 will find a similar experience here. The app continues to be a reliable tool for managing your home energy system efficiently.

Tesla Powerwall 3 Rebates & Incentives in Australia (2025)

There is currently no national rebate scheme to incentivise homeowners to install batteries.

There are state-based incentives and schemes designed to encourage the adoption of renewable energy solutions:

• NSW Government Battery Scheme
• Northern Territory (NT) Home and Business Battery Scheme.

Home-owners considering a purchase should explore available programs in their region to take advantage of financial support or rebates that may offset the initial investment cost.

Check out our comprehensive guide to rebates & incentives in Australia

Is The Tesla Powerwall 3 Worth It?

Solar choice has gone in depth onwhether or not solar batteries are worth it. That being said, the Tesla Powerwall 3 brings substantial advancements in home energy storage, with features like a built-in solar inverter, higher power output, and increased scalability. These upgrades make it a strong contender for new solar installations and households with significant energy demands. However, its higher price tag of around AUD 13,600, along with the 5 kW charging limitation, might not make it the best fit for everyone. The system’s lack of compatibility with existing Powerwall 2 setups also poses a challenge for those looking to expand their current storage systems.

Consumers considering the Powerwall 3 should weigh the benefits of its enhanced capabilities against the higher cost and specific limitations, particularly if they have existing solar systems or lower energy needs. The built-in inverter simplifies installation, but its incompatibility with Powerwall 2 means it’s not an ideal solution for those looking to integrate with older systems.

Ultimately, whether the Powerwall 3 is worth the investment depends on your specific energy requirements and future plans. It’s a powerful and flexible option for those building new solar setups or who anticipate growing energy needs, but the higher cost and limitations should be carefully considered before making a purchase. Consulting with a certified installer to fully understand how the Powerwall 3 will fit into your home energy system is essential for making an informed decision.

Tesla Powerwall 3 Technical Specifications

Additional Notes:

• Compliance Information: Important for understanding the legal and safety compliance of the unit, especially for those interested in off-grid installations or specific regulatory environments.
• Hardware Interface: Details such as the RS-485 port for meters and dry contact relay for system integration are crucial for those looking to integrate the Powerwall 3 with other home automation or energy management systems.
• Surge Protection and RF Immunity: Including specifics like surge withstand capability and radiated RF immunity is important for consumers concerned about the durability and reliability of the system in areas with frequent electrical disturbances.

See the Tesla Powerwall 3 Data Sheet for more details.

Frequently Asked Questions Powerwall 3