Dive Brief:
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Tesla is halting delivery of the DC version of its Powerwall 2 home energy storage system, except in the U.S., Electrek reports.
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Tesla unveiled two versions of the storage system in October, a DC version and an AC version with a built-in inverter box. Both versions cost $5,000.
- The DC Powerwall was compatible with only a few SolarEdge inverters. The company told Electrek its move reflects its aim to offer customers “greater flexibility.”
Dive Insight:
Tesla's introduction of its Powerwall home battery and in 2015 brought residential storage into the mainstream. About a year later, Tesla unveiled a new version of the Powerwall and its Powerpack utility-scale system, including updated electronics, new inverters and twice the energy density of earlier models.
Early sales showed an optimistic company, with SEC filings revealing Tesla sold 168.5 MWh of batteries to residential solar installer SolarCity in early 2016 — more than twice the entire U.S. behind-the-meter storage market in the previous year.
Tesla finished the year by purchasing SolarCity, turning it into a vertically-integrated solar and storage company. But there also have been missteps along the way.
Last March, Tesla decided not to produce its 10 kWh Powerwall because of strong demand for its smaller 6.4kWh system, which is built for backup and self-consumption. And except in America, the company is now discontinuing the DC version of Powerwall 2. The DC version costs the same as the AC version despite the fact that the AC version has a built-in inverter.
Rooftop solar systems produce DC electricity, which must be converted by an inverter for use in the home. The availability of a DC battery allows vendors to design inverters to serve individual customer needs, but the Powerwall is reportedly only currently compatible with a few SolarEdge converters.
It will reportedly continue to be offered in the United States, but not in other Tesla markets.
The company told Electrek that the AC version "includes a Tesla built-in inverter, offering customers the greatest value, flexibility, and ease of installation, regardless of whether they’re pairing Powerwall with new solar, retrofitting, or using the Powerwall for backup."
Correction: A previous version of this article incorrectly priced the DC Powerwall at $5,000 and said Tesla discontinued producing its 10 KWh Powerwall last year due to economic difficulties. The DC Powerwall's pricetag is $5,500 and the company never produced the 10 KWh because of stronger demand for its other Powerwall.