Business is largely about money in the end. Warren Buffett, who has lots of it, believes, “Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.” However, he must have made a few mistakes himself to have added, “In the business world, the rear view mirror is always clearer than the windshield.” Finn Peacock, writing in One Step off the Grid describes a battery price war in Australia that may have already have Tesla beaten.
Where Did This Battery Price War Suddenly Come From?
This is not really unexpected, given Tesla’s mega-initiatives in conjunction with the South Australia Government. Everything Elon Musk touches, seems to turn out beautifully.
His Powerwall 2 battery is a symphony of architectural splendor, and his Tesla 3 car a motoring masterpiece.
We can only stand in awe as his SpaceX rockets launch. However, beauty is in the eye of the beholder, and price is part of that in the mind of the consumer too. How handsome does a storage battery have to be. Should design be of primary importance, or should dollar performance be what matters most?
The Main Players in Australia’s Battery Price War
Tesla largely entered the Australian energy storage arena first. The launch price of its 13 kW Power Wall 2 was $8,000, or cost per warranted kWh $0.21 per One Step off the Grid.
However, local company Ampetus Energy has made Australian consumers a counter offer of $ 0.19 per warranted kWh. Their 3 kW batteries stacked in modular form and retailing at $2,300 are ready to ship. Before you get your calculator out, their best-in-industry warranty of 15 years makes a critical difference to the numbers.
Finn Peacock mentions several other battery manufacturers including BYD B-Box, DCS PV 5.0, and Delta Hybrid E5, who are snapping at Tesla’s heels in the Australia battery price war. However, there is more to quality than price. Warren Buffet remarked, “Only when the tide goes out do you discover who’s been swimming naked.” Quality is what we have after the excitement of the purchase wears off, and we have forgotten the marketing message.
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Preview Image: Downtown Adelaide Doug Barber: CC 1.0
