Tesla faces mounting criticism for selling subsidised batteries in Australia that critics say fail to provide basic functionality for consumers or the electricity grid.  

The US tech giant’s Powerwall batteries are included in New South Wales’ Peak Demand Reduction Scheme, which offers rebates of up to $2,400 to encourage households to install batteries aimed at cutting electricity bills and improving grid reliability.  

However, energy experts argue Tesla’s products do not meet those objectives due to their proprietary limitations. 

Tesla batteries sold in Australia are not ‘interoperable’, meaning they cannot integrate with other smart devices. 

Interoperability is critical for coordinating household devices like solar panels, heat pumps, and batteries with home energy management systems. This technology allows households to benefit financially by selling surplus power to the grid during high demand or by using more electricity when supply is abundant.  

Tesla’s system, critics claim, blocks such capabilities by locking its batteries within the company’s software ecosystem. As a result, its batteries cannot be remotely controlled by other platforms and may even clash with other devices, undermining grid stability during peak periods.  

This means that a Tesla battery could discharge during a hot evening when electricity demand is high. Without compatibility, this action could trigger an increase in power usage by other home devices, worsening strain on the grid.  

The issue has prompted calls for regulatory changes. 

Experts advocate for mandatory standards to ensure smart energy devices work seamlessly across platforms, as required in several US states, including California.  

Although Tesla batteries in Australia share hardware with US models, their compatibility features are reportedly disabled through software settings, which critics say Tesla could reverse with a simple update.  

Additionally, Australia lacks mandatory interoperability rules, but work to develop such standards is ongoing.  

More details are accessible here. 

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