Tesla has deleted all the references of its 10-kilowatt-hour residential battery from its Powerwall website. The company has removed it from its press kit as well, and now it is left only with the smaller battery that has been designed for daily cycling.

What’s The Real Reason For Tesla Discontinuing 10kw Powerwall?

More demand for “Daily Powerwall”

Tesla initially made the change without explanation, giving rise to speculations. But a few days ago, the EV firm confirmed that it has discontinued the 10-kilowatt-hour option. In an emailed statement to GTM, the EV firm also explained the reasons for such a decision.

“We have seen enormous interest in the Daily Powerwall worldwide,” the statement read. “The Daily Powerwall supports daily use applications like solar self-consumption plus backup power applications, and can offer backup simply by modifying the way it is installed in a home.”

Tesla added that seeing the interest, it decided to have all its focus on building and deploying the 7-kilowatt-hour Daily Powerwall. The company marketed the 10-kilowatt-hour option — priced at $3,500 — as a backup power supply capable of 500 cycles. This battery was aimed at consumers for whom peace of mind is the top priority if the grid goes down as it did during Superstorm Sandy.

No real benefits from Tesla’s 10-kw-Hour Powerwall?

The problem with a lithium-ion backup battery is that the economics for it are not that attractive, says GTM. The 500-cycle battery is not the best available option against alternatives, even when Tesla offers it at a low wholesale price, especially once the inverter and other system costs are included.

Companies like Generac and Cummins sell state-of-the-art backup generators for $5,000 or less. GTM’s Jeff St. John pointed out last spring that these companies offer financing as well, thus removing any advantage Tesla might claim with that tactic.

Ravi Manghani, a senior energy storage analyst at GTM Research, said, “Even some of the deep cycling lead acid batteries offer 1,000 cycles and cost less than half of the $3,500 price tag for Tesla Powerwall. For pure backup applications only providing 500 cycles, lead acid batteries or gensets are way more economical.”

In California, batteries can benefit from the state’s Self-Generation Incentive Program (SGIP). However, regulators in the state have indicated that battery systems will be eligible only if they are able to cycle five times a week, and this excludes Tesla’s bigger battery.