Tesla Powerwall 3 Learns to Store Cheap Solar as Heat

A new Heat Pump Optimization feature lets the Powerwall 3 bank surplus solar and cheap grid power as stored heat, effectively turning a home's hot-water tank into a second battery.

3 min read
Tesla Powerwall 3 Learns to Store Cheap Solar as Heat

AUSTIN, Texas — Tesla has given the Powerwall a clever new trick: turning a home's hot-water tank into a second battery. A feature called Heat Pump Optimization, now rolling out in Europe, lets the Powerwall 3 and three-phase Powerwall 3P tell a compatible heat pump to run harder when solar is plentiful or electricity is cheap, banking that surplus energy as stored heat.

How It Works

The idea is elegantly simple. The Powerwall sends a heat pump one of two signals — "normal" or "boost" — based on electricity prices and solar production. In boost mode, the heat pump heats water beyond the home's immediate needs, usually into a domestic hot-water or buffer tank, so that stored heat can carry the household through expensive grid hours.

The behavior adapts to how owners run their systems. In Self-Powered mode, boosting kicks in only when solar is left over after household loads are met. In Savings mode, it fires when solar is available or when grid power hits its cheapest point, drawing on 24-hour tariff forecasts. "Heat Pump Optimization allows your Powerwall to boost heating when there's surplus solar or energy is inexpensive," Tesla Energy wrote on X. It is the kind of software-only upgrade that has made Tesla's energy division a standout, fresh off a record Megapack quarter as its factories ramp.

The Numbers That Make It Work

The physics are compelling. A 300-liter tank heated an extra 30°C stores roughly 10.5 kWh of heat. At a heat-pump coefficient of performance of 3, banking that heat takes only about 3.5 kWh of electricity — leaving the Powerwall's full 13.5 kWh capacity free for loads that can't be stored as hot water. In effect, the system stretches a home's total storage well beyond the battery alone, using water as an inexpensive thermal reservoir.

Tesla Powerwall 3 Learns to Store Cheap Solar as Heat — additional image

The feature relies on SG-Ready, a German standard introduced in 2012 that uses relay contacts to signal a heat pump's operating state. That focus makes sense: Germany sold 299,000 heating heat pumps in 2025, up 55% year over year, making them nearly half of all new heating systems sold for the first time.

Built for Real Homes

Tesla has kept the requirements practical. Owners need a Powerwall 3 or 3P on firmware 26.26 or later, an SG-Ready-certified heat pump wired to the Powerwall by a Tesla-certified installer, and app version 4.59.1 or newer. Signals are recommendations the heat pump's thermostat can override, each held at least 10 minutes per the standard, and the system reverts to normal during an outage so backup power stays prioritized. The polish mirrors the steady cadence Tesla brings to its broader hardware, like the Supercharger network's latest V4 milestone.

For now the feature is live only in Europe, where SG-Ready heat pumps are common and the Powerwall 3P's native three-phase inverter already targets Germany, Austria, and Switzerland. Tesla hasn't committed to a North American rollout, but the approach — adding value to a battery with nothing but software — is exactly the sort of upgrade owners can expect more of. Full details are on Tesla's Powerwall page.

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