Market RadarTesla
Tesla Powerwall 3 Optimizes Heat Pumps for Solar Energy Storage
Tesla has introduced the Heat Pump Optimization feature for the Powerwall 3 in Europe. This functionality enables the Powerwall to control compatible heat pumps, directing them to store surplus solar energy or inexpensive grid power as heat in a buffer tank. This maximizes the utilization of renewable energy and reduces reliance on more expensive grid electricity during peak hours. The technology leverages the SG-Ready standard for communication.
Tesla has introduced a new feature called Heat Pump Optimization, specifically for the Powerwall 3 and Powerwall 3P in Europe. This innovation enables the home battery to communicate with compatible heat pumps. The objective is to control the heat pump to convert surplus solar energy or inexpensive grid electricity into heat and store it.
The Powerwall continuously monitors electricity prices and solar production throughout the day. Based on this data, the system sends one of two signals to the heat pump: normal operation or 'boost'. In 'boost' mode, the heat pump heats water beyond the immediate needs of the household, storing this heat in a domestic hot water or buffer tank. This stored thermal energy can then be utilized during periods of higher electricity prices, reducing the need for the heat pump to operate.
The activation of the 'boost' function depends on the Powerwall's operating mode. In 'Self-Powered' mode, the heat pump is only activated for a boost when there is surplus solar energy available after all other household loads have been met. In 'Savings' mode, the boost occurs when solar energy is available, or when grid power is at its cheapest, based on 24-hour tariff forecasts. Tesla Energy summarized this as boosting heating when there is surplus solar or when energy is inexpensive.
The feature utilizes the SG-Ready standard, introduced by the German Heat Pump Association (BWP). This standard allows communication via two relay contacts on the heat pump. Tesla uses the 'normal' and 'boost' signals from this standard. Specific requirements include a Powerwall 3 or 3P with firmware 26.26 or later, an SG-Ready-certified heat pump with an accessible SG-2 contact, physical wiring installed by a Tesla-certified installer, and Tesla app version 4.59.1 or later. The signals are recommendations and can be overridden by the heat pump's thermostat settings. Each signal must be held for at least ten minutes to comply with SG-Ready specifications. During a power outage, the feature reverts to normal operation to prioritize backup loads.
Storing energy as heat in a hot water tank offers significant advantages. A 300-liter hot water tank, heated an additional 30°C, can store approximately 10.5 kWh of thermal energy. With a heat pump operating at a COP of 3, this requires only about 3.5 kWh of electricity. This means an existing hot water tank can absorb a substantial portion of midday solar energy without utilizing the Powerwall's lithium capacity. This leaves the Powerwall's 13.5 kWh free for other applications that cannot be stored as heat. The heat pump market is experiencing strong growth; for example, in Germany, 299,000 heating heat pumps were sold in 2025, a 55% increase year-over-year.
This development follows the introduction of the Powerwall 3P with a three-phase inverter earlier this year, targeting markets such as Germany, Austria, and Switzerland. Last year, Tesla celebrated the milestone of one million Powerwalls delivered worldwide. This software update contributes to increasing the value of the installed base. The information for this article is sourced from Electrek.
Want to know what this means for you?
Talk to Oranje-Eco →This article is an Oranje-Eco summary of a report by Electrek. Read the original: Electrek.
How do you foresee the combination of home batteries and smart heat pump control influencing the future of residential energy management?
No comments yet - be the first.