Tesla Powerwall 3 vs 2: Which Model Suits Me Best?

The Tesla Powerwall is a wall-mounted lithium battery that has raised the bar of what to expect from energy storage systems.

The rechargeable battery is designed for homes and businesses looking for a high-performance energy storage solution to integrate into their solar system or basically store grid-generated electricity.

While the Tesla Powerwall 2 has gained popularity since its release into the Australian market in 2016, Tesla has released a newer, improved model of the Powerwall, the Tesla Powerwall 3.

Debuting the market in August 2024, the Tesla Powerwall 3 has made waves in the energy storage industry and has challenged the limits.

With this, there is a brewing competition between the two models of the Tesla Powerwall, and as a potential owner, you want to know which option is the best for your solar power system or grid energy storage. This raises the most important question: “Powerwall 2 or 3: Which should I choose?”

This guide compares the key features of the two Powerwall options so you can make an informed decision.

Tesla Powerwall 3 Vs. 2: Energy Capacity

The best place to start the comparison is by weighing the technical specifications of both models of the battery. Technical properties like storage capacity, output power, and efficiency can make a huge difference in the performance of a battery.

The Powerwall 3 doesn’t offer any difference from Powerwall 2 in terms of energy capacity as both models share a storage capacity of 13.5kWh.

The only difference between the two is seen in output power. While Tesla Powerwall 2 can only deliver continuous power of 5kW, the Tesla Powerwall 3 offers a 100% increase to continuously churn out 10kW, which makes a huge difference.

However, it should be noted that while Powerwall 2 can achieve a peak output of 7kW, Powerwall 3 can technically click 11.04kW but is capped at 10kW due to local DNSP regulations. This regulation is necessary to prevent the Powerwall from disrupting the grid during the day when the solar panels are charging the battery.

Ultimately, more energy capacity means a better battery option for homes with more energy-intensive appliances requiring more electricity. For example, the Tesla Powerwall 3 will make a better investment for you if you rely on your battery storage to run multiple air conditioning, dryers, and electric stoves and charge your electric vehicle.

Tesla Powerwall 3 Vs. 2: Battery-Inverter Combination

Powerwall 2 and 3 are also distinguished by the type of inverter they come with. While Powerwall 2 features a built-in AC inverter, Powerwall 3 has a built-in DC hybrid inverter.

The Powerwall 3 features a hybrid inverter packaged in the battery casing. The hybrid inverter ensures the DC power from the solar panels passes through the inverter into the battery without any conversion. The hybrid inverter only converts the DC power into AC when the home or business needs the power.

This arrangement means direct input from the solar power system, as the generated DC power goes raw into the battery that stores it in DC.

Tesla Powerwall 3 Vs. 2: Efficiency

The efficiency of a battery defines how much energy is lost during the conversion and storage. Of course, energy is lost during the charging and discharging processes of a battery, and higher efficiency means less energy loss.

Tesla Powerwall 3 offers high efficiency than its counterpart Powerwall 2 since the former doesn’t require power conversion from AC to DC for storage. In the Powerwall 2, the need for converting AC power to DC to store in the battery means higher energy loss in form of heat.

While the Powerwall 2 has a round-trip efficiency of 90%, Powerwall 3 smokes its rival with a 97.5% round-trip efficiency.

Note that round-trip efficiency defines the ratio of output energy you get from your battery during discharging to the input energy that goes into the battery during charging.

Tesla Powerwall 3 Vs. 2: Scalability

Scalability is a significant feature of the Powerwall 3, as it offers the benefits of merging multiple units for more energy capacity. Plus, Tesla are expected to release an Expansion Pack to of the Powerwall 3 which would come without the inverters so owners can more affordably connect multiple units to enhance scalability.

When finally out, you can connect up to 3 Expansion Units to a Tesla Powerwall 3 to achieve a storage capacity of 54 kWh. This development is handy in homes and offices with more energy needs, especially now that more households and businesses are adopting high-power appliances such as multiple EV chargers, HVAC systems, and electric ovens.

Conversely, Powerwall 2 is an excellent option for AC-coupled systems where a separate string inverter is already installed.

Additionally, it is important to note that Powerwall 3 is not compatible with the Powerwall 2. This means if you have an existing Powerwall 2, you cannot expand your storage with a Powerwall 3 without adding an extra inverter to the Powerwall 2 system.

For current Powerwall 2 owners planning to expand their storage capacity, it is highly recommended to purchase additional Powerwall 2 units while they are still available, as this model will soon be phased out.

Check our guide on 5 Reasons You Need a Solar and Battery System.

Tesla Powerwall 3 Vs. 2: Performance in Extreme Climates

Before you invest your money in a solar battery, it is important to know how durable the battery is. Comparing Powerwall 2 with Powerwall 3 on the durability front, the newer model seems to compose itself better than its immediate competitor when operated in extreme climates.

Although both models share an operating temperature range of -20 degrees census to 50 degrees census, Powerwall 3 intimidates its predecessor with an aluminium shed that helps it sink heat. Coupled with an active cooling system that helps keep the battery at peak performance, the aluminium shell ultimately keeps the battery cool.

However, it is worth noting that the cooling system featured in the new model of Powerwall comes in terms of an internal fan, a feature that critics have condemned for generating noise. On the other hand, while the liquid-cool cooling system in Powerwall 2 might not be as effective as the internal fan in Powerwall 3, it is praised for remaining quiet during operation.

Going forward, Powerwall 3 offers a heat mode, which is absent in its predecessor. Tesla offers the heat mode to pre-warm the battery for optimal efficiency when charged in a cold environment.

This idea is said to come from Tesla EVs, where the batteries are pre-warmed in chilly weather when preparing for charging.

Tesla Powerwall 3 Vs. 2: Ease of Installation

The ease of installation is one area that Tesla has improved its Powerwall 3. With the Powerwall 3, installers have fewer parts to deal with, as the battery comes as an all-in-one package, enhancing the ease of installation.

On the other hand, the battery, inverter and other accessories in the Powerwall 2 come separately and require installers to connect them together. This breeds a complex installation process with an additional space requirement. Plus, the cost of installation rises due to the complexity of the system and prolonged installation time.

However, it is worth noting that having all the components of your energy storage system in a single unit might mean a complete breakdown of the system should one component break down. With Powerwall 3, the need to repair a single component means you have to wait until the repair or replacement takes place.

Regardless, ensure you hire a professional solar battery installer in Australia, like SolarBright, for your Powerwall installation to have the best of your investment.

Tesla Powerwall 3 Vs. 2: Safety

The Powerwall 2 and Powerwall 3 solar batteries differ in their battery chemistry, with the Powerwall 2 using a lithium nickel manganese cobalt (NMC) chemistry, known for its high energy density and efficient power delivery. On the other hand, the Powerwall 3 uses lithium iron phosphate (LiFePO4), which is renowned for its safety, stability, and longer lifespan.

While both offer excellent performance, the LiFePO4 chemistry in the Powerwall 3 provides enhanced thermal stability and a longer cycle life, making it a more reliable option for long-term use.

You may also check our guide on What rebates and incentives are available for solar and batteries in NSW?

Tesla Powerwall 3 Vs. 2: Which Model Suits Me Best

The rivalry between Powerwall 2 and 3 doesn’t seem to be one that can be easily judged, as each model has its offerings to stay relevant in the market.

While the Tesla 3 has witnessed several upgrades, including a high efficiency and a scalability advantage, the Powerwall 2 offers a better pricing that makes a better option for homeowners and business owners on a tight budget. Although a difference of $1,500 might not mean much for many homes and businesses, it contributes to the decision of picking the right Powerwall battery for others.

Regardless, it is crucial to keep in mind that the upgrades in Powerwall 3 mean improved user experience. Hence, it will make the right option for you if you have enough money to spend on your battery and the noise from the cooling system is no deal break for you.

Need help choosing or installing Tesla Powerwall?

Are you still confused with choosing between Powerwall 2 and 3?

At SolarBright, we are Tesla Energy certified reseller and installer , and have helped thousands of aussie homes installing Tesla Powerwall.

Contact us and our experts will be glad to discuss and recommend the best option for you based on your energy needs.