Tesla Powerwall 3 is disrupting the solar inverter market
New data suggests that the Tesla Powerwall 3 is significantly disrupting the US solar inverter market.
The home battery pack’s integrated inverter is changing the game.
Tesla acquired its solar business when it bought SolarCity in a controversial deal due to Musk being a large shareholder of both Tesla and SolarCity, and Musk’s cousin led the latter.
The automaker kept the SolarCity operations going for a few years. In fact, it continued until after Tesla shareholders sued Musk over the acquisition, and Musk defended himself by claiming that SolarCity had become an integral part of Tesla.
Shortly after he won the lawsuit, Tesla virtually stopped all operations that came from its SolarCity acquisition, which primarily consisted of residential solar financing and installations.
Tesla even stopped reporting solar deployment. The company’s energy business now consists almost entirely of Powerwall and Megapack deployments.
However, the launch of the Powerwall 3 has indirectly brought Tesla back into the solar business, as the home battery pack features an inverter that works for both solar and storage applications.
EnergySage is a company that matches solar installers with potential buyers, and as a result, it has a wealth of interesting data about the solar industry in the US. Today, it released its Spring 2025 Marketplace report.
In the report, EnergySage revealed that Tesla became the second-most quoted inverter brand in the second half of last year:
Tesla became the most quoted battery brand in H2 2024, occupying 63% of Marketplace share nationwide. Because the Powerwall 3 includes an integrated inverter, Tesla also became the second-most quoted inverter brand. With batteries increasingly being added to solar systems—the national battery attachment rate jumped to 45% in H2 2024, an all-time high—Tesla’s growth was a key driver of the low storage and solar prices seen on EnergySage. In 2025, we are examining whether brand backlash and equipment shortages will affect Tesla’s Marketplace share.
This is also a byproduct of the increased popularity of energy storage systems when deploying new solar systems.
In big solar markets like California and Texas, the majority of residential solar quotes are attached to batteries, and Tesla is not the top quoted brand, thanks to Powerwall 3:
Powerwall was already the preferred home battery pack for many homeowners, and the fact that it now includes a solar inverter has made it even more attractive, as most home energy storage systems in the US are being deployed along with rooftop solar.
The Powerwall 3’s solar inverter integration is pushing solar plus storage costs down quite a bit.
The popularity of the Powerwall 3 has particularly hurt Enphase, a leader in solar inverter. It had 73% of the US market in 2022, and now it is down to 53%.
Despite Tesla driving prices down, Powerwall 3 is not the cheapest battery pack available. Panasonic and EG4 batteries were both priced lower on a per kWh basis than Tesla’s in the second half of 2024, but Tesla won on cost when also replacing the solar inverter.
However, it’s not all good news from Tesla. EnergySage also recently reported an increase in customers requesting alternatives to Powerwalls in 2025, partly due to Elon Musk’s increasing controversy.
If you’re interested in installing solar panels and/or batteries for your home, we recommend using EnergySage. You will be able to get quotes without any hassle and only talk to someone when you are ready to move forward. Within minutes, you can get on the path to producing your own power with solar and battery storage, including with Powerwall.
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After a month off trying to wrap our heads around all the chaos surrounding EVs, solar, and everything else in Washington, we’re back with the biggest EV news stories of the day from Tesla, Ford, Volvo, and everyone else on today’s hiatus-busting episode of Quick Charge!
It just gets worse and worse for the Tesla true believers – especially those willing to put their money where Elon’s mouth is! One believer is set to lose nearly $50,000 betting on Tesla’s ability to deliver a Robotaxi service by the end of June (didn’t happen), and the controversial CEO’s most recent spat with President Trump had TSLA down nearly 5% in pre-morning trading.
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If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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Hyundai is getting ready to shake things up. A new electric crossover SUV, likely the Hyundai IONIQ 2, is set to debut in the coming months. It will sit below the Kona Electric as Hyundai expands its entry-level EV lineup.
Is Hyundai launching the IONIQ 2 in 2026?
After launching the Inster late last year, Hyundai is already preparing to introduce a new entry-level EV in Europe.
Xavier Martinet, President and CEO of Hyundai Europe, confirmed that the new EV will be revealed “in the next few months.” It will be built in Europe and scheduled to go on sale in mid-2026.
Hyundai’s new electric crossover is expected to be a twin to the Kia EV2, which will likely arrive just ahead of it next year.
It will be underpinned by the same E-GMP platform, which powers all IONIQ and Kia EV models (EV3, EV4, EV5, EV6, and EV9).
Like the Kia EV3, it will likely be available with either a 58.3 kWh or 81.4 kWh battery pack option. The former provides a WLTP range of 267 miles while the latter is rated with up to 372 miles. All trims are powered by a single electric motor at the front, producing 201 hp and 209 lb-ft of torque.
Although it may share the same underpinnings as the EV2, Hyundai’s new entry-level EV will feature an advanced new software and infotainment system.
According to Autocar, the interior will represent a “step change” in terms of usability and features. The new system enables new functions, such as ambient lighting and sounds that adjust depending on the drive mode.
It’s expected to showcase Hyundai’s powerful new Pleos software and infotainment system. As an end-to-end software platform, Pleos connects everything from the infotainment system (Pleos Connect) to the Vehicle Operating System (OS) and the cloud.
Pleos is set to power Hyundai’s upcoming software-defined vehicles (SDVs) with new features like autonomous driving and real-time data analysis.
As an Android-based system, Pleos Connect features a “smartphone-like UI” with new functions including multi-window viewing and an AI voice assistant.
The new electric crossover is expected to start at around €30,000 ($35,400), or slightly less than the Kia EV3, priced from €35,990 ($42,500). It will sit between the Inster and Kona Electric in Hyundai’s lineup.
Hyundai said that it would launch the first EV with its next-gen infotainment system in Q2 2026. Will it be the IONIQ 2? Hyundai is expected to unveil the new entry-level EV at IAA Mobility in September. Stay tuned for more info. We’ll keep you updated with the latest.
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Tesla has unveiled its lithium-iron-phosphate (LFP) battery cell factory in Nevada and claims that it is nearly ready to start production.
Like several other automakers using LFP cells, Tesla relies heavily on Chinese manufacturers for its battery cell supply.
Tesla’s cheapest electric vehicles all utilize LFP cells, and its entire range of energy storage products, Megapacks and Powerwalls, also employ the more affordable LFP cell chemistry from Chinese manufacturers.
This reliance on Chinese manufacturers is less than ideal and particularly complicated for US automakers and battery pack manufacturers like Tesla, amid an ongoing trade war between the US and virtually the entire world, including China.
As of last year, a 25% tariff already applied to battery cells from China, but this increased to more than 80% under Trump before he paused some tariffs on China. It remains unclear where they will end up by the time negotiations are complete and the trade war is resolved, but many expect it to be higher.
Prior to Trump taking power, Tesla had already planned to build a small LFP battery factory in the US to avoid the 25% tariffs.
The automaker had secured older manufacturing equipment from one of its battery cell suppliers, CATL, and planned to deploy it in the US for small-scale production.
Tesla has now released new images of the factory in Nevada and claimed that it is “nearing completion”:
Here are a few images from inside the factory (via Tesla):
Previous reporting stated that Tesla aims to produce about 10 GWh of LFP battery cells per year at the new factory.
The cells are expected to be used in Tesla’s Megapack, produced in the US. Tesla currently has a capacity to produce 40 GWh of Megapacks annually at its factory in California. The company is also working on a new Megapack factory in Texas.
Ford is also developing its own LFP battery cell factory in Michigan, but this facility is significantly larger, with a planned production capacity of 35 GWh.
Electrek’s Take
It’s nice to see this in the US. LFP was a US/Canada invention, with Arumugam Manthiram and John B. Goodenough doing much of the early work, and researchers in Quebec making several contributions to help with commercialization.
But China saw the potential early and invested heavily in volume manufacturing of LFP cells and it now dominates the market.
Tesla is now producing most of its vehicles with LFP cells and all its stationary energy storage products.
It makes sense to invest in your own production. However, Tesla is unlikely to catch up to BYD and CATL, which dominate LFP cell production.
The move will help Tesla avoid tariffs on a small percentage of its Megapacks produced in the US. Ford’s effort is more ambitious.
It’s worth noting that both Ford’s and Tesla’s LFP plants were planned before Trump’s tariffs, which have had limited success in bringing manufacturing back to the US.
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