Tesla rents out two Powerwalls for $35 a month — but only in Texas and only with Tesla Electric

Tesla has launched a new "Powerwall Lease" program in Texas, letting customers rent a pair of home batteries for roughly $35 per month. The catch is that the discounted rate only applies if you also sign up for Tesla Electric, the company's own retail electricity service.

Without the electricity plan, a standard lease for two Powerwall units runs about $122 per month in the first year, with a 3% annual escalator baked into the contract. Customers who enroll in the Tesla Electric Backup plan qualify for an $87 monthly credit. That credit brings the effective cost down to around $35 plus tax in year one. There is also a one-time $100 order fee, though Tesla markets the installation itself as "$0 installation."

The credit is not guaranteed forever. It only kicks in after the system is installed, granted permission to operate, and successfully enrolled in the program. To keep receiving it, customers must stay enrolled in Tesla Electric and continue meeting the program's requirements. If they drop out, they revert to paying the full lease amount.

The lease is limited to select areas of Texas that offer retail electric choice, and it does not include solar panels — this is strictly a battery-and-electricity proposition, not a solar package. Non-standard installations that require electrical upgrades or special permitting can cost extra, and in some cases may even affect eligibility for the monthly credit.

The system includes Storm Watch, which automatically charges the batteries to full capacity ahead of severe weather events. Customers manage everything through the Tesla app, including monitoring battery levels and viewing their energy usage.

Tesla positions the program as a way to make whole-home backup power accessible without a large upfront investment. Instead of paying thousands of dollars for battery hardware, customers pay a manageable monthly fee while also getting their electricity supply from Tesla's retail arm. The company appears to be using the lease as a tool to grow its customer base for Tesla Electric, which already operates in Texas's deregulated energy market.

The announcement did not specify how long the promotional credit lasts or whether the lease terms change after the first year beyond the stated escalator. Tesla also did not disclose how many customers have signed up so far or what regions beyond the initial rollout might be added later. The program is currently open only to homeowners in eligible Texas service areas who meet the installation requirements.