Tesla has launched a recall of Powerwall 2 home batteries in Australia after fires in some units caused minor property damage. The move, detailed in a notice by the Australian Competition and Consumer Commission (ACCC), affects a batch of Powerwall 2 systems that are paired with battery cells from an unspecified third-party supplier. No one has been injured, but the company is taking precautionary steps to minimize risk and replace impacted units.
What the Powerwall 2 recall covers and who is affected
The recall applies to Powerwall 2s that were made in America and sold in Australia between late 2020 and mid-2022. Every Powerwall 2 holds about 14 kilowatt-hours (kWh) of lithium-ion capacity and is typically coupled with rooftop solar to store excess energy during the day for use during the evening or during grid events such as an outage. Under the ACCC notice, Tesla will replace faulty batteries at no cost to owners and consider compensation for lost savings from energy generation on a case-by-case basis.
Immediate safety actions and owner notifications
Tesla is also draining down the affected batteries remotely to a low state of charge to lower the risk of thermal events until replacements can be coordinated. If their unit is affected, owners will receive a notice via the Tesla app. Reducing the charge state reduces the energy available to fuel a fault, and this is a standard risk-mitigating action taken across the energy storage sector in connection with recalls.
Decoding the risk in lithium-ion systems
Home batteries are composed of tightly packed cells, organized by a battery management system that oversees charge, temperature, and performance. “Very occasionally you might have a defect — an internal short or some contaminants — and the heat builds faster than it can get out, which is thermal runaway.” Testing standards such as UL 9540A and IEC 62619 are designed to capture and bound propagation; AS/NZS 5139 installation rules in Australia add another form of protection; but real-world situations can still arise that need to be addressed immediately once they have been identified.
What this means for solar homes and virtual power plants
Many Australian Powerwall owners are involved in virtual power plants (VPPs), with software linking thousands of home batteries to bolster the grid at peak times. The Australian Energy Market Operator has become increasingly accommodating of distributed energy resources in planning and operations, and programs run by retailers or state governments have shown how these assets can shave demand spikes and stabilize frequency. The temporary decrease in VPP output from the recall may slightly reduce some households’ time-of-use savings, which is why loss-of-benefits compensation is being considered.
A broader backdrop of ESS safety actions
Australia is one of the world’s leading markets for residential batteries, with tens of thousands being installed every year, according to analysis by firms including SunWiz. The ACCC has previously managed recalls of other home storage brands, with notable measures taken against LG Energy Solution units following thermal events. Those incidents sped up changes that were coming — to installer certification, siting rules, and product testing — and raised the bar for the entire industry. Tesla’s recall is part of this maturing safety culture, where rapid notification, remote controls, and systematic replacements are increasingly standard.
What Powerwall owners can do during the recall period
Owners should monitor the Tesla app for a recall notification and let the remote discharge process happen. Ensure the area around the battery is free from obstruction, adhere to any installation clearance advice recommended by your accredited installer, and do not override system settings manually. If you are on a VPP, look for communication with your retailer or program operator about the impact of tariffs or program changes. Unless otherwise directed, do not disconnect the system so Tesla can monitor performance and finalize replacement scheduling.
For families, the bottom line is simple: Safety first, and as little disruption as possible. For the industry, it’s another sobering reminder that strong quality assurance and open-sourced field response are crucial as home batteries rise to become a mainstream foundation stone of Australia’s clean energy transition.
