Recent power outages across California and other states have got many homeowners looking for a backup power source. Two of the most popular options are gas-powered generators and the Tesla Powerwall 2.0 home backup battery.
If you’re on the fence and wondering which one is more cost effective, you’ve come to the right place. In this article, we’ll break down the upfront costs as well as the ongoing operating costs of the Tesla Powerwall 2.0 vs. a generator to help you decide which one is more economical for your situation.
The Cost of Running a Tesla Powerwall 2.0 vs. a Generator
Both the Tesla Powerwall 2.0 and a back up generator will come with their fair share of upfront costs. Here is a breakdown of the expenses associated with running a Tesla Powerwall 2.0 vs. a generator:
Tesla Powerwall 2.0
The Tesla Powerwall 2.0 is more expensive upfront. It also requires professional installation which can drive up the initial price. Depending on how many batteries you need, you should expect to pay between $15,000 and $20,000 dollars for the equipment and installation, depending on the installer.
But once your battery is installed and operating, you start to see the savings. The Tesla Powerwall 2.0 runs on electricity and is therefore cheaper to operate than a gas-powered generator. You can save even more money in the long run by using these two strategies:
- Use Time of Use Rates to power your battery when grid power is less expensive. Then, use the power stored in your battery to power your home during times peak usage when rates are higher.
- Pair your battery with a residential solar system to save even more. Solar power is less expensive than grid power, so by using your solar panels to charge your battery, you can multiply your savings exponentially over the years.
The Tesla Powerwall 2.0 does come with a high price tag, but it will end up paying for itself within a few years due to how much energy it saves. Homeowners can also save 30% on the total cost if they purchase their Tesla Powerwall as a bundle with a home solar system. Learn more about the Federal Solar Tax Credit here. It also comes with a 10-year warranty to protect your purchase from any manufacturer defects.
Backup generators can cost between $2,000 and $6,000 for the equipment alone. Installation costs can run between a few hundred to a few thousand dollars. The total cost of a whole-house generator plus installation can run from $6000 to $11000 according to Home Guide.
Gas-powered generators need fuel to run. So while the upfront cost may be lower than with the Tesla Powerwall 2.0, a generator will continue to incur expenses over time. So instead of saving you money with each use, the generator will end up costing you more and more.
The cost to run a generator will fluctuate based on fuel costs and the size of your generator. Gasoline, propane, and natural gas are common fuel types for backup generators.
Tesla Powerwall 2.0 or backup generator?
Overall, in a Tesla Powerwall vs. generator comparison, the battery backup emerges as the most cost-effective power backup solution. While it’s more expensive than gasoline generators, you can recoup your expenses from the savings made from a sustainable energy source.
To learn more about the Tesla Powerwall 2.0 and other battery storage options, download your free battery buyer’s guide or contact Solar Optimum to speak with one of our Energy Coordinators today.