Australia leads the world in home battery adoption, but even the most advanced technology isn't immune to the occasional glitch.
Tesla has issued an urgent recall for Powerwall 2 home batteries across Australia after receiving reports of fires that led to 'minor property damage', prompting thousands of households to check their energy storage systems.
The recall affects Powerwall 2 units sold between November 2020 and June 2022, and while the exact number isn't disclosed, it's a significant reminder that even cutting-edge home technology requires vigilant safety monitoring.
Check your Tesla app immediately
If you own a Tesla Powerwall 2, your first port of call should be the Tesla app on your smartphone. Consumers should check to confirm that their Powerwall 2 system is online and check the Tesla App for a notification about whether their unit is affected.
Don't panic if you notice your battery has already been drained—most affected units have already been remotely discharged by Tesla as a precautionary safety measure.
This remote discharge capability represents a significant advancement in battery safety technology, allowing Tesla to address potential risks before they become dangerous.
'Tesla appears to be making the right moves with the recall process at this point. The situation shouldn't turn out to be an excruciatingly drawn-out affair such as that with the LG battery recall.'
What went wrong with these batteries
Tesla has identified certain lithium-ion battery cells from a third-party supplier in a subset of Powerwall 2 systems that may fail and overheat.
The company has received multiple reports of affected units producing smoke or flames, though no injuries have been reported.
The Powerwall 2 contains 14 kWh of lithium-ion batteries and is usually installed alongside solar panels to store excess power generated during the day.
When functioning properly, these systems are workhorses of energy independence, but faulty cells from the third-party supplier have created fire risks that Tesla is taking seriously.
Australia's battery boom puts spotlight on safety
This recall comes at a fascinating time for Australia's home energy storage market. The Australian energy storage market hit new heights in 2024, with 72,500 residential battery installations—a 27 per cent increase from the previous year.
The cumulative number of home battery systems installed in Australia is now more than 250,000, totalling 2,770 MWh. To put this in perspective, that's enough stored energy to power around 125,000 typical Australian homes for an entire day.
Did you know?
Did you know?
Australia has become one of the world's largest per-capita markets for home batteries, with one battery system installed for every six solar installations in 2023. This puts us at the forefront of the global energy storage revolution.
Australia's position as a battery adoption leader means recalls like this have greater significance here than in most other markets.
The Australia residential battery storage market size reached USD 539.7 million in 2024 and is projected to grow to USD 2.7 billion by 2033.
Tesla's proactive response sets new standard
Credit where it's due—Tesla's handling of this recall appears far more organised than previous battery safety issues in Australia.
The situation shouldn't turn out to be an excruciatingly drawn-out affair such as that with the LG battery recall that started in late 2020 and is still playing out.
The company's ability to remotely discharge affected units, rendering them safe, demonstrates how advanced battery management systems can be used proactively for safety. Once your Powerwall 2 unit has been discharged and isolated from service, the unit does not pose any operational risk.
What Tesla is doing for affected customers
Recalled batteries will be replaced free of charge, and the company 'will consider compensation for lost energy savings... on a case-by-case basis'.
This means if you're losing money because your battery isn't storing and releasing solar energy as usual, Tesla may compensate you for those increased electricity bills.
The replacement process involves Tesla or certified installers reaching out directly to affected customers. Tesla or a third-party service provider will contact consumers who have an affected Powerwall 2 unit to schedule replacements.
Financial protection for affected customers
- Complete battery replacement at no cost
- Potential compensation for lost energy savings
- Case-by-case assessment of additional costs
- Tesla covers all installation expenses
Importantly, the issue is limited to a specific group of Powerwall 2 customers and does not affect Powerwall 3 units. If you've recently upgraded to the newer Powerwall 3 system, you're not affected by this recall.
The broader impact on Australia's energy future
This recall, while concerning for affected households, won't derail Australia's battery revolution. Home battery systems surpassed 250,000 by the end of 2023, accounting for more than 2,700 MWh of capacity.
While this number may seem high, around 3.7 million Australian homes have rooftop solar units installed, meaning less than one in 14 households with solar units have home battery systems installed.
The room for growth remains enormous. Tesla revealed last year that over 100,000 Powerwalls were participating in the Virtual Power Plant program, where homeowners can sell excess energy back to the grid during peak demand periods.
What this means for future battery buyers
If you're considering a home battery system, this recall shouldn't deter you from exploring energy storage options. The safety measures Tesla has implemented—particularly remote monitoring and discharge capabilities—represent the kind of proactive safety management that makes modern battery systems far safer than earlier generations.
Tesla stopped taking orders for the Powerwall 2 in late 2024/early 2025, and it is no longer Clean Energy Council approved, as it did not comply with an updated battery standard. This means new customers will be getting the more advanced Powerwall 3, which incorporates lessons learned from earlier models.
Looking ahead: Australia's energy independence journey
This recall highlights both the challenges and sophistication of Australia's rapid transition to distributed energy storage. While no technology is perfect, the speed and thoroughness of Tesla's response—enabled by remote monitoring capabilities—shows how far battery safety systems have advanced.
Current forecasts by AEMO show Australia will need at least 22GW of storage by 2030—a more than 700 per cent increase in capacity in the next six years. The market operator's Integrated System Plan forecasts Australia will need at least 49GW of storage by 2050 to reach net zero.
Home batteries will play a crucial role in this energy transformation, and safety recalls like this one help ensure the technology continues improving. For the thousands of affected Powerwall 2 owners, the inconvenience of replacement is a small price for the peace of mind that comes with proper safety oversight.
The recall also demonstrates why choosing established manufacturers with robust customer support systems matters when investing in home energy technology. Tesla's ability to remotely monitor, discharge, and replace affected units shows the value of integrated smart systems over basic battery storage.
What This Means For You
What's your experience with home battery systems? Have you received notification about the Powerwall 2 recall, or are you considering installing battery storage for the first time? Share your thoughts and questions in the comments below—your experience might help other readers navigate their own energy independence journey.
Original Article
https://7news.com.au/news/urgent-te...-overheating-sparks-fire-incidents-c-20046556
Tesla is recalling Powerwall 2 batteries over fire risk | TechCrunch
Cited text: Tesla is recalling Powerwall 2 home batteries in Australia after the company received reports of fires that led to “minor property damage,” according ...
Excerpt: Tesla has issued an urgent recall for Powerwall 2 home batteries across Australia after receiving reports of fires that led to 'minor property damage'
https://techcrunch.com/2025/09/16/tesla-is-recalling-powerwall-2-batteries-over-fire-risk/
Tesla issues product recall for Powerwall 2 battery—pv magazine Australia
Cited text: Australia’s consumer watchdog has warned thousands of households to check their Tesla battery energy storage systems with a nationwide recall in place...
Excerpt: Tesla has issued an urgent recall for Powerwall 2 home batteries across Australia after receiving reports of fires that led to 'minor property damage'
https://www.pv-magazine-australia.c...ssues-product-recall-for-powerwall-2-battery/
Tesla is recalling Powerwall 2 batteries over fire risk | TechCrunch
Cited text: The recall affects an unspecified number of Powerwall 2 units made in the U.S. and sold between November 2020 and June 2022.
Excerpt: Powerwall 2 units sold between November 2020 and June 2022
https://techcrunch.com/2025/09/16/tesla-is-recalling-powerwall-2-batteries-over-fire-risk/
Tesla issues product recall for Powerwall 2 battery—pv magazine Australia
Cited text: A recall notice published by the Australian Competition and Consumer Commission (ACCC) says the affected Powerwall 2 units were sold between November ...
Excerpt: Powerwall 2 units sold between November 2020 and June 2022
https://www.pv-magazine-australia.c...ssues-product-recall-for-powerwall-2-battery/
Powerwall 2 | ACCC Product Safety
Cited text: Consumers should check to confirm that their Powerwall 2 system is online and check the Tesla App for a notification about whether their unit is affec...
Excerpt: Consumers should check to confirm that their Powerwall 2 system is online and check the Tesla App for a notification about whether their unit is affected
https://www.productsafety.gov.au/search-consumer-product-recalls/powerwall-2
Tesla issues urgent product recall for Powerwall 2 battery pack due to risk of fire
Cited text: Source: Tesla · The ACCC said those who own one of the products should check to confirm their system is online, and check the Tesla App for notificati...
Excerpt: Consumers should check to confirm that their Powerwall 2 system is online and check the Tesla App for a notification about whether their unit is affected
https://au.news.yahoo.com/tesla-iss...ttery-pack-due-to-risk-of-fire-020301258.html
Powerwall 2 | ACCC Product Safety
Cited text: Most affected units have already been remotely discharged by Tesla.
Excerpt: most affected units have already been remotely discharged by Tesla
https://www.productsafety.gov.au/search-consumer-product-recalls/powerwall-2
Tesla issues recall for Powerwall 2 units in Australia
Cited text: According the the Australian Competition & Consumer Commission (ACCC), most affected units have already been remotely discharged by Tesla.
Excerpt: most affected units have already been remotely discharged by Tesla
https://esdnews.com.au/tesla-issues-recall-for-powerwall-2-units-in-australia/
Powerwall 2 | ACCC Product Safety
Cited text: ... Tesla has identified certain lithium-ion battery cells from a third-party supplier in a subset of Powerwall 2 systems that may fail and overheat.
Excerpt: Tesla has identified certain lithium-ion battery cells from a third-party supplier in a subset of Powerwall 2 systems that may fail and overheat
https://www.productsafety.gov.au/search-consumer-product-recalls/powerwall-2
Tesla Powerwall 2 Australian Recall: What We Know
Cited text: ... “Tesla has identified certain lithium-ion battery cells from a third-party supplier in a subset of Powerwall 2 systems that may fail and overheat....
Excerpt: Tesla has identified certain lithium-ion battery cells from a third-party supplier in a subset of Powerwall 2 systems that may fail and overheat
https://www.solarquotes.com.au/blog/tesla-powerwall-recall-mb3272/
Powerwall 2 | ACCC Product Safety
Cited text: No injuries have been reported.
Excerpt: no injuries have been reported
https://www.productsafety.gov.au/search-consumer-product-recalls/powerwall-2
Tesla is recalling Powerwall 2 batteries over fire risk | TechCrunch
Cited text: Despite the fires, no injuries have been reported, the ACCC said in a recall notice.
Excerpt: no injuries have been reported
https://techcrunch.com/2025/09/16/tesla-is-recalling-powerwall-2-batteries-over-fire-risk/
Tesla is recalling Powerwall 2 batteries over fire risk | TechCrunch
Cited text: · The Powerwall 2 contains 14 kWh of lithium ion batteries, and its usually installed alongside solar panels to store excess power generated during th...
Excerpt: The Powerwall 2 contains 14 kWh of lithium-ion batteries and is usually installed alongside solar panels to store excess power generated during the day
https://techcrunch.com/2025/09/16/tesla-is-recalling-powerwall-2-batteries-over-fire-risk/
Battery Market Report—Australia 2025—SunWiz—Solar & Storage Market Intelligence
Cited text: Record Growth: The Australian energy storage market hit new heights in 2024, with 72,500 residential battery installations—a 27 per cent increase from the pre...
Excerpt: The Australian energy storage market hit new heights in 2024, with 72,500 residential battery installations—a 27 per cent increase from the previous year
https://www.sunwiz.com.au/battery-market-report-australia-2025/
Media Release: Record-breaking year for battery installations across Australia in 2023—SunWiz—Solar & Storage Market Intelligence
Cited text: The cumulative number of home battery systems, or home energy storage systems, installed in Australia is now more than 250,000, totalling 2770 MWh.
Excerpt: The cumulative number of home battery systems installed in Australia is now more than 250,000, totalling 2,770 MWh
https://www.sunwiz.com.au/media-rel...ttery-installations-across-australia-in-2023/
Data reveals dominant players in Australian battery market—pv magazine Australia
Cited text: About 250,000 Australian homes, totalling 2,770 MWh, now have a battery system and there is no expectation of that run slowing down, according to SunW...
Excerpt: The cumulative number of home battery systems installed in Australia is now more than 250,000, totalling 2,770 MWh
https://www.pv-magazine-australia.c...ominate-players-in-australian-battery-market/
Australia Residential Battery Storage Market 2025 | Expected to Reach USD 2,743.1 Million by 2033 | Exhibit a 19.80 per cent CAGR
Cited text: The Australia residential battery storage market size reached USD 539.7 Million in 2024 and is projected to grow to USD 2,743.1 Million by 2033, exhib...
Excerpt: The Australia residential battery storage market size reached USD 539.7 million in 2024 and is projected to grow to USD 2.7 billion by 2033
https://www.openpr.com/news/4169393/australia-residential-battery-storage-market-2025-expected
Tesla Powerwall 2 Australian Recall: What We Know
Cited text: The situation shouldn’t turn out to be an excruciatingly drawn-out affair such as that with the LG battery recall that started in late 2020 and is *st...
Excerpt: The situation shouldn't turn out to be an excruciatingly drawn-out affair such as that with the LG battery recall that started in late 2020 and is still playing out
https://www.solarquotes.com.au/blog/tesla-powerwall-recall-mb3272/
Tesla issues product recall for Powerwall 2 battery—pv magazine Australia
Cited text: Tesla said it has identified a safety concern with a batch of lithium-ion battery cells sourced from a third-party supplier following reports of “Powe...
Excerpt: remotely discharge affected units, rendering them safe
https://www.pv-magazine-australia.c...ssues-product-recall-for-powerwall-2-battery/
Tesla issues product recall for Powerwall 2 battery—pv magazine Australia
Cited text: “Once your Powerwall 2 unit has been discharged and isolated from service, the unit does not pose any operational risk,” Tesla said, adding that “the ...
Excerpt: Once your Powerwall 2 unit has been discharged and isolated from service, the unit does not pose any operational risk
https://www.pv-magazine-australia.c...ssues-product-recall-for-powerwall-2-battery/
Tesla is recalling Powerwall 2 batteries over fire risk | TechCrunch
Cited text: Recalled batteries will be replaced free of charge, and the company “will consider compensation for lost energy savings … on a case-by-case basis,” th...
Excerpt: Recalled batteries will be replaced free of charge, and the company 'will consider compensation for lost energy savings... on a case-by-case basis'
https://techcrunch.com/2025/09/16/tesla-is-recalling-powerwall-2-batteries-over-fire-risk/
Tesla issues urgent product recall for Powerwall 2 battery pack due to risk of fire
Cited text: Affected units will be replaced at no cost, and the company is considering compensation for lost energy savings from the discharged units on a 'case-b...
Excerpt: Recalled batteries will be replaced free of charge, and the company 'will consider compensation for lost energy savings... on a case-by-case basis'
https://au.news.yahoo.com/tesla-iss...ttery-pack-due-to-risk-of-fire-020301258.html
Tesla issues recall for Powerwall 2 units in Australia
Cited text: Tesla or a third-party service provider will contact consumers who have an affected Powerwall 2 unit to schedule replacements.
Excerpt: Tesla or a third-party service provider will contact consumers who have an affected Powerwall 2 unit to schedule replacements
https://esdnews.com.au/tesla-issues-recall-for-powerwall-2-units-in-australia/
Tesla issues urgent product recall for Powerwall 2 battery pack due to risk of fire
Cited text: It's understood that Tesla or a third-party service provider will contact consumers who have an affected Powerwall 2 unit to schedule replacements.
Excerpt: Tesla or a third-party service provider will contact consumers who have an affected Powerwall 2 unit to schedule replacements
https://au.news.yahoo.com/tesla-iss...ttery-pack-due-to-risk-of-fire-020301258.html
Battery Storage: Australia’s current climate
Cited text: Home battery systems surpassed 250,000 by the end of 2023, accounting for more than 2700 MW hours of capacity. While this number may seem high, around...
Excerpt: Home battery systems surpassed 250,000 by the end of 2023, accounting for more than 2,700 MWh of capacity.
https://www.energycouncil.com.au/analysis/battery-storage-australia-s-current-climate/
Tesla issues recall for Powerwall 2 units in Australia
Cited text: Tesla revealed last year that over 100,000 Powerwalls were participating in the program.
Excerpt: Tesla revealed last year that over 100,000 Powerwalls were participating in the Virtual Power Plant program
https://esdnews.com.au/tesla-issues-recall-for-powerwall-2-units-in-australia/
Tesla recalls Powerwall 2 units in Australia
Cited text: Tesla revealed last year that over 100,000 Powerwalls were participating in the program.
Excerpt: Tesla revealed last year that over 100,000 Powerwalls were participating in the Virtual Power Plant program
https://www.teslarati.com/tesla-recalls-powerwall-2-units-in-australia/
Tesla Powerwall 2 Australian Recall: What We Know
Cited text: Tesla stopped taking orders for the 2 in late 2024/early 2025 and it is no longer Clean Energy Council approved as it did not comply with an updated b...
Excerpt: Tesla stopped taking orders for the Powerwall 2 in late 2024/early 2025 and it is no longer Clean Energy Council approved as it did not comply with an updated battery standard
https://www.solarquotes.com.au/blog/tesla-powerwall-recall-mb3272/
Battery Storage: Australia’s current climate
Cited text: Current forecasts by AEMO show Australia will need at least 22GW by 2030—a more than 700 per cent increase in capacity in the next six years. The ma...
Excerpt: Current forecasts by AEMO show Australia will need at least 22GW of storage by 2030—a more than 700 per cent increase in capacity in the next six years.
https://www.energycouncil.com.au/analysis/battery-storage-australia-s-current-climate/
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