New information means that the Tesla Powerwall 3 is considerably disrupting the US photo voltaic inverter market.
The house battery pack’s built-in inverter is altering the sport.
Tesla acquired its photo voltaic enterprise when it purchased SolarCity in a controversial deal on account of Musk being a big shareholder of each Tesla and SolarCity, and Musk’s cousin led the latter.
The automaker saved the SolarCity operations going for a number of years. Actually, it continued till after Tesla shareholders sued Musk over the acquisition, and Musk defended himself by claiming that SolarCity had grow to be an integral a part of Tesla.
Shortly after he gained the lawsuit, Tesla just about stopped all operations that got here from its SolarCity acquisition, which primarily consisted of residential photo voltaic financing and installations.
Tesla even stopped reporting photo voltaic deployment. The corporate’s vitality enterprise now consists nearly completely of Powerwall and Megapack deployments.
Nonetheless, the launch of the Powerwall 3 has not directly introduced Tesla again into the photo voltaic enterprise, as the house battery pack options an inverter that works for each photo voltaic and storage purposes.
EnergySage is an organization that matches photo voltaic installers with potential consumers, and consequently, it has a wealth of attention-grabbing information in regards to the photo voltaic business within the US. Right now, it launched its Spring 2025 Market report.
Within the report, EnergySage revealed that Tesla grew to become the second-most quoted inverter model within the second half of final 12 months:
Tesla grew to become essentially the most quoted battery model in H2 2024, occupying 63% of Market share nationwide. As a result of the Powerwall 3 consists of an built-in inverter, Tesla additionally grew to become the second-most quoted inverter model. With batteries more and more being added to photo voltaic programs—the nationwide battery attachment fee jumped to 45% in H2 2024, an all-time excessive—Tesla’s progress was a key driver of the low storage and photo voltaic costs seen on EnergySage. In 2025, we’re analyzing whether or not model backlash and gear shortages will have an effect on Tesla’s Market share.
That is additionally a byproduct of the elevated recognition of vitality storage programs when deploying new photo voltaic programs.
In massive photo voltaic markets like California and Texas, nearly all of residential photo voltaic quotes are connected to batteries, and Tesla just isn’t the highest quoted model, because of Powerwall 3:
Powerwall was already the popular house battery pack for a lot of householders, and the truth that it now features a photo voltaic inverter has made it much more engaging, as most house vitality storage programs within the US are being deployed together with rooftop photo voltaic.
The Powerwall 3’s photo voltaic inverter integration is pushing photo voltaic plus storage prices down fairly a bit.
The recognition of the Powerwall 3 has notably harm Enphase, a frontrunner in photo voltaic inverter. It had 73% of the US market in 2022, and now it’s right down to 53%.
Regardless of Tesla driving costs down, Powerwall 3 just isn’t the most cost effective battery pack out there. Panasonic and EG4 batteries had been each priced decrease on a per kWh foundation than Tesla’s within the second half of 2024, however Tesla gained on value when additionally changing the photo voltaic inverter.
Nonetheless, it’s not all excellent news from Tesla. EnergySage additionally lately reported a rise in clients requesting options to Powerwalls in 2025, partly on account of Elon Musk’s rising controversy.
If you happen to’re eager about putting in photo voltaic panels and/or batteries in your house, we advocate utilizing EnergySage. It is possible for you to to get quotes with none problem and solely discuss to somebody if you end up prepared to maneuver ahead. Inside minutes, you may get on the trail to producing your individual energy with photo voltaic and battery storage, together with with Powerwall.
Electrek’s Take
Powerwall 3 is an attention-grabbing product. It makes a lot sense to combine a photo voltaic inverter in a battery pack. We at the moment are witnessing how this comparatively easy innovation is having a major affect on photo voltaic prices within the US.
The photo voltaic business within the US is poised to be considerably impacted by Trump’s tariffs. Though, as we beforehand highlighted, the sector had stockpiled photo voltaic panels to keep away from having to boost costs quickly.
It would doubtless assist the US rooftop photo voltaic business get via 2025, however I’d count on costs to extend later in 2025 or early 2026 if the tariffs proceed.
