Your home energy storage shouldn’t be a fire hazard, but Tesla’s Powerwall 2 units installed between November 2020 and June 2022 have been overheating and catching fire across Australia. The Australia Competition and Consumer Commission issued an urgent recall after multiple reports of batteries smoking or bursting into flames, causing minor property damage but thankfully no injuries. If you’ve invested in solar energy storage for grid independence, this recall demands immediate attention.
Defective Cells Turn Energy Storage Into Fire Risk
Third-party lithium-ion cells are overheating in affected Powerwall 2 units.
The 14 kWh battery systems contain faulty lithium-ion cells from a third-party supplier that can’t handle the thermal stress of daily energy cycling. Several Australian homeowners discovered this the hard way when their wall-mounted batteries began smoking or emitting flames.
While property damage remained minor, the fire risk in residential settings makes this recall particularly serious for the thousands of households relying on these systems for backup power and solar energy storage.
Tesla Acts Fast With Remote Safety Measures
Most affected batteries have been remotely discharged to prevent overheating.
Tesla has already remotely discharged most at-risk Powerwall 2 units to dramatically reduce fire danger while replacement scheduling begins. This remote intervention essentially puts your battery into safe mode, eliminating the overheating risk but also stopping energy storage temporarily.
The company promises free replacements for all affected units and may offer compensation for lost energy savings, though that gets evaluated case by case according to Tesla’s recall response.
Check Your Tesla App for Recall Status
Affected owners receive notifications through the Tesla mobile app.
Your first step is opening the Tesla app to check for recall notifications. If your Powerwall 2 is affected, Tesla or certified installers will contact you directly to schedule the free replacement installation.
The Powerwall 3 model remains unaffected by this cell defect issue, so the safety concern stays limited to the specific batch of second-generation units with the problematic third-party components.
Australia represents one of the world’s largest home battery markets, making this recall a significant test of consumer confidence in residential energy storage technology.
When your smart home’s backup power system becomes a safety liability, it highlights how quickly the promise of energy independence can turn into expensive anxiety—even from premium brands like Tesla.
