Last updated: 16 September 2025
Tesla and the Australian Competition and Consumer Commission (ACCC) have announced a safety recall of certain Powerwall 2 batteries. The recall applies to a subset of units sold between November 2020 and June 2022, following the discovery of a manufacturing defect in some lithium-ion cells supplied by a third party.
This guide brings together information from the official ACCC recall notice and Tesla’s dedicated Powerwall 2 Replacement support page to help homeowners understand what’s happening and what steps they should take.
Why Has the Powerwall 2 Been Recalled?
According to the ACCC recall notice (PRA number 2025/20611), Tesla identified that a batch of Powerwall 2 units may contain defective lithium-ion cells that, in rare cases, could fail and overheat.
- There have been reports of affected units smoking or emitting flames, leading to minor property damage.
- Importantly, no injuries have been reported.
- To address the risk, Tesla has been remotely discharging affected units across Australia.
Tesla’s official Powerwall 2 Replacement page confirms that all impacted units will be replaced under warranty and at no cost to customers.
What Are the Safety Risks?
The ACCC has stated that although most units have already been discharged, an active affected unit could overheat and pose a fire risk.
Tesla reassures customers that once a unit is discharged and isolated, it does not pose any operational risk. This means homes remain safe until replacement is complete.
What Homeowners Need to Do
Based on Tesla’s official recall page, affected customers are being contacted directly. Here’s what you should know:
- 1. Check your Tesla app Tesla has confirmed that customers will see a message in the app if their unit is affected. Notifications may also be sent by email or voicemail.
- 2. Replacement is automatic: Every affected Powerwall 2 will be removed and replaced by Tesla or a Certified Installer, free of charge.
- 3. Solar will keep running: Tesla states that AC-coupled solar systems will continue to generate power while the Powerwall is disabled, but backup power won’t be available until a replacement is installed.
- 4. Replacement scheduling: Tesla is prioritizing affected customers and will coordinate directly with homeowners and installers to schedule replacements.
👉 More details are available on Tesla’s official page: Tesla Powerwall 2 Replacement.
Common Questions About the Recall
Yes. Tesla confirms that once a Powerwall 2 is discharged and taken offline, it no longer poses any risk.
Yes. AC-coupled solar generation continues, but backup power is unavailable until the replacement is installed.
Tesla states that scheduling is being coordinated directly with homeowners, with priority given to affected units.
Tesla recommends starting with your original installer. If they are unavailable, you can reach Tesla directly at [email protected] or 1800 958 369 (toll-free).
Does This Affect Powerwall 3?
No. Both Tesla and the ACCC have clarified that the recall only applies to a subset of Powerwall 2 units. The Tesla Powerwall 3 is not affected.
For an overview of the newer model, see our Tesla Powerwall 3 Review.
Final Thoughts
This recall highlights the importance of battery warranties and after-sales support. While concerning, Tesla has taken proactive measures by:
- Remotely discharging affected Powerwall 2 units (as confirmed by the ACCC notice)
- Offering free replacements under warranty (as outlined on Tesla’s recall page)
- Providing clear updates to customers via the Tesla app, email, and phone
If you own a Powerwall 2 purchased between late 2020 and mid-2022, check the Tesla app today or visit the official recall page to confirm whether your system is included.
Considering a New Battery?
With the Federal Battery Rebate and state programs now active, it may be a good time to explore newer, safer home battery options.
👉 Get up to 3 quotes from local installers and compare batteries approved for Australian rebates.
References
- Tesla Powerwall 2 Replacement Page — Tesla Motors Australia Pty Ltd, Tesla official support
- ACCC Recall Notice — PRA number 2025/20611, “Tesla Powerwall 2 Electrical Safety Recall” (16 September 2025)
