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Mercedes-Benz is shutting down its residential energy storage program saying their battery was too expensive for the market.
The company hoped to compete with Tesla in the US residential solar market by delivering solar + energy storage solutions to homeowners.
Last year, Mercedes partnered with leading residential solar installer Vivint to announce Mercedez Benz Energy.
The company took a similar approach to the market like Tesla with this partnership deal, and also launched a robust marketing campaign with some similarities to Tesla’s.
Mercedes explained a major reason why their product was too expensive for the residential energy storage market is that the batteries are “overengineered to be a vehicle battery pack and not a stationary home battery pack.”
Adding that the batteries “proved too expensive to compete for the sedentary role.”
With a proposed modular battery system, Mercedez offered between 2.5 kWh to 20 kWh in energy capacity. With Vivint pricing the cost at $5,000 to $13,000 after installation.
On the other hand, the second generation of Tesla’s Powerwall 2 is priced at $7,500 installed, for 14 kWh.
Mercedez Benz isn’t the only automaker to venture into the residential energy storage market. Audi and Nissan have also announced projects targeting energy storage solutions for homeowners.
At $7,500 for 14 kWh battery is definitely a very affordable solution. Just like regular people driving a $30K Toyota compared to a Mercedes at $70k.