Tesla Electric launches $35/month Powerwall whole-home backup lease

Tesla now offers a whole-home battery backup lease for about $35 a month, but only in parts of Texas that allow you to choose your own electricity provider. The setup requires leasing two Powerwalls (home battery units) and signing up for Tesla Electric, Tesla's own electricity retail service. The base lease actually runs about $122 a month in year one, with a 3% price increase each year after that. Signing up for Tesla Electric's Backup plan brings a monthly credit of $87, which is what brings the cost down to roughly $35 plus tax. There's also a one-time $100 order fee, though Tesla is marketing installation as free. The credit only starts once the system is installed and approved, and you have to stay enrolled in Tesla Electric to keep it. Leave that electricity plan, and the price jumps back to the full lease amount.

This deal does not include solar panels, so it's strictly about battery backup paired with Tesla's electricity service. Homes needing electrical upgrades or special permits could face extra costs. In exchange for the discount, Tesla gets to draw on your stored battery power to help supply the Texas grid during high-demand periods, similar to programs it already runs elsewhere. For homeowners in eligible Texas areas already paying high electricity rates, this could make backup power much cheaper than buying a generator. But it works only as long as you stay locked into Tesla as your electricity provider, and the price still climbs a bit every year.