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Home ยป Tesla Cuts Megapack Price to $1.32 Million, Increases Installation Costs in Pricing Shift

Tesla Cuts Megapack Price to $1.32 Million, Increases Installation Costs in Pricing Shift

Tesla Megapack

Tesla has lowered the base price of its utility-scale Megapack energy storage product by $130,000 to approximately $1.32 million, down from $1.45 million previously. The price cut applies to the 2 hour duration Megapack unit without installation included.

However, Tesla increased the starting price of Megapacks with installation by around $123,000. It’s unclear what proportion of customers opt for Tesla’s integrated installation service versus handling it themselves.

The Megapack pricing adjustment was revealed on Tesla’s commercial energy storage website, showing the new reduced cost for buying standalone units. Bulk order pricing has decreased by a corresponding percentage as well.

On the surface, the lower Megapack purchase price counterbalances the increased installation pricing, resulting in a negligible net change. But the split pricing has tax implications that benefit buyers, as capital expenditures and services are treated differently.

By dividing the product and installation costs, customers now see a lower upfront equipment cost. This allows more favorable depreciation treatment while installation is expensed immediately. The change provides financial flexibility.

Tesla continues innovating to make its industry-leading battery storage technology more accessible. While still catering to large-scale utility projects, every cost reduction opens new commercial use cases.

As battery costs fall, Tesla Energy’s economies of scale make the value proposition increasingly compelling versus fossil fuel peaker plants for grid services. The Megapack remains unmatched in turnkey high capacity storage solutions.

Overall, Tesla aims to drive the energy transition forward by optimizing energy storage pricing where possible. While modest on the surface, this strategic Megapack repricing reflects their commitment to expanding clean energy dominance.

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