Finally, Tesla Powerwall 3 Is Talking To Its Father

In a move widely wished and wildly anticipated, Tesla have finally answered the question all Powerwall 2 owners have been asking since August 2024: surely the new Powerwall 3 is compatible with the Powerwall 2? Well yes, it is now, almost.

Is Powerwall 3 Compatible With Powerwall 2?

With the latest firmware updates, Powerwall 2 owners will be able to upgrade using Tesla’s latest Powerwall 3 battery technology.

Though I had some unofficial inkling from Tesla tech support in mid-February, I’m pleased to announce Tesla has made it official. A new PowerWall 3 will be able to talk to the Powerwall 2 if you already own one. If you’ve been thinking about adding more capacity, this really changes the equation.

So finally, they’ve done what they should have from the outset. This has been one of the biggest failures in product planning, only rivalled by Fronius releasing the Gen24 without them being able to talk to the dominant Snap-Inverter range. A problem I’m happy doesn’t exist anymore either.

We’ll probably see fewer used PW2 appearing in the classified adverts, but it’s really going to annoy those who have already jumped ship and quit their Tesla battery in favour of something bigger, and probably cheaper.

Used PW2 seem to raise about $4000 on the secondhand market – sadly the PW1 and Fronius shown have too many zeroes to sell.

Tesla Are Turning Up At Trade Shows

It’s amazing what a bit of competition will do for a company that was previously a market leader and a bit insular or standoffish to go with it. Prices have fallen, incentive deals are announced and new features and products are coming.

Tesla is celebrating the installation of a MILLION home batteries, so they’re offering the “Next Million Powerwalls” promo. Customers who order by March 31, 2026, (and install by September 30, 2026) will receive rebates up to:

• $750 for a Powerwall 3
•  $1,500 for a single Powerwall 3 with an Expansion Pack

This is in addition to the Cheaper Home Batteries Program incentive of $3,650 for one PW3 or $5,450 for a PW3 + expansion pack.

What Are The Benefits?

It’s not just about unlocking more storage, even though the standard Powerwall capacity of 13.5kWh turns out to be a pretty good default capacity for many households.

Features include:

• stronger blackout protection
• better EV support
• potential to make more money with a Virtual Power Plant
• and greater solar savings.

Tesla insist you book in with a trained professional to configure your new PW3 system and make sure it’s fit for purpose.

Sadly there will be problems for those early adopters with the honestly pretty ordinary gateway 1. While those with a nurio wireless metering device, commonly used to measure a solar inverter some distance from the main switchboard, will also encounter compatibility issues.

More Power Coming For Powerwall 3

Three Phase PW3 Is Coming

Tesla hasn’t always delivered on it’s targets, let alone aspirations like 3 phase, so I collared the local Tesla rep after her presentation at the recent Smart Energy Council roadshow and asked pointedly which Xmas would PW3phase be delivered by?

“This one!” she promised with a smile, but the latter half of the year was as specific as it got.

My other Tesla sources pointed toward the PW3phase launched in Germany, but sadly the technokrauts haven’t released the details yet. Unless there’s some queering brought about by Australian Standard 4777 or the Clean Energy Council accreditation, the unit delivered here won’t be much changed from the European one, aside of course from CSIP-AUS compliance. That has to be working straight out of the box, because world leading Australian networks need extra control.

The More Things Change, The More They Stay The Same

For some years there have been people bleating from the cheap seats about SolarQuotes being biased, or bent by manufacturer kickbacks. It’s rubbish of course, but there was a time when Tesla’s product was such a powerful brand, it had become the default search term for home battery.

If you wanted your articles to show up in front of eyeballs, you had to stitch “Powerwall” into the title, even if it was Alternatives.

Fun fact, out of these 8 batteries, Enphase is the only one I’d recommend, AND it’s the only one still widely available.

New customers often include notes when they apply for quotes through our website. Often because they want to include a particular brand or need help with a difficult roof perhaps. In an ironic twist, the first time SolarQuotes ever saw requests to exclude a brand, it was because Tesla’s CEO had incinerated his reputation. People couldn’t stand the smell of Musk.

Still you have to give credit where it’s due, of the 8 AC coupled alternatives we listed in November 2022, Tesla is powering on while most are gone.

• Eguana – LG battery recall problems, Australian offices closed
• Q.cells – withdrawn from Australia
• Redback – difficult to raise warranty claims on Pylontech batteries
• Sonnen – difficult to get warranty support. Press articles on Sonnen website lead to PW3 reviews?
• Delta – warranties honoured but no further hybrid solar, remaining presence focused on EV chargers
• Energiser – rebranding different hardware now
• Soltaro – still active but low profile in a buoyant market.

It makes me wonder what the brand attrition is going to be like for the next 3 years?

For more on Powerwall and its competition in the home battery space, check out our solar battery comparison table.