$35 Per Month: Texas Users Can Lease Two Powerwall Units
On August 13, Tesla Energy announced the launch of its Powerwall lease program in Texas, allowing users to lease two Powerwall home battery systems for just $35 per month (approximately $37 after tax) and gain whole-home backup power. This program bundles battery hardware with Tesla’s retail electricity service, Tesla Electric, reducing the standard $122 monthly lease cost to $35 through an $87 monthly bill credit.
Users are required to pay a one-time $100 order fee, though Tesla markets the plan as having “$0 installation.” The lease agreement includes a 3% annual escalator, meaning long-term costs will increase over time. To date, Tesla has installed over one million Powerwall units worldwide.
Lease Terms and Restrictions: Non-Standard Installations May Incur Extra Costs
Tesla emphasizes that the $35 monthly rate is contingent on two conditions: users must enroll in Tesla Electric’s power service and agree to include their Powerwalls in Tesla’s virtual power plant program. If a user cancels Tesla Electric or revokes battery dispatch rights, the lease cost reverts to $122 per month, subject to the same 3% annual increase.
The program is currently available only in certain areas of Texas with retail electricity choice and does not support pairing with solar panels. Tesla notes that non-standard installations requiring electrical upgrades or special permitting may incur additional costs and could affect eligibility for the $87 monthly credit. Tesla positions this offering as a “battery and power integration service” rather than a solar solution.
Virtual Power Plant Model Lowers Lease Costs
The affordability of Tesla’s lease program is primarily driven by its virtual power plant (VPP) operations. Users’ Powerwall batteries store energy during off-peak hours and discharge it back to the ERCOT grid during periods of high demand. Tesla profits from these energy transactions, using the revenue to subsidize lease costs. In a single VPP program, Tesla has paid Powerwall owners as much as $10 million in compensation.
This model also enables Tesla to lock users into its energy service ecosystem. In October 2025, Tesla Energy revived its solar and Powerwall leasing business, and in February 2026, it launched a Cybertruck vehicle-to-grid (V2G) program in Texas, encouraging vehicle owners to sell excess power back to the grid. These initiatives transform Tesla’s hardware into dispatchable grid assets, strengthening its competitive edge in the energy market.
Users Gain Access to Storm Watch and Other Features, But Long-Term Costs Require Evaluation
Lease subscribers can manage their batteries through the Tesla app and activate the Storm Watch feature, which automatically charges batteries to full capacity ahead of severe weather events to ensure adequate backup power. However, Tesla Electric’s service has received mixed reviews, with some users expressing concerns about its power service quality.
Over time, the lease cost will increase by 3% annually, meaning users will face rising expenses. If a user switches to a different electricity retailer, they will lose the $87 monthly credit, and the lease cost will revert to $122. For Texas residents facing rising electricity prices, this program may offer an attractive backup power solution, but users should carefully assess long-term costs and contract flexibility.
Tesla states that the Powerwall lease program is currently available only in Texas, with no confirmation on potential expansion to other regions. As the only company that owns the battery hardware, software, virtual power plant, and electricity retail service, Tesla has integrated these diverse offerings into a single monthly subscription, redefining the home energy service model.
