The launch was held at a former electricity substation in Newport in Melbourne's west, and was attended by Tesla's vice president of energy products, and Elon Musk's cousin, Lyndon Rive.
The new Powerwall 2 promise double the capacity of Tesla's original Powerwall and also has a smaller footprint.
"Tesla's approach is simply to make the best product, make it cost effective, make it simple, and market share will do what it does," Rive said.
"I expect that within the next 10 years, 100% of homes with rooftop solar would also have battery storage, as homeowners sought to cut their electricity bills and make the most of their solar self-generation, and as network companies better understood the grid services benefits of distributed battery storage.
"The uptake of the Powerwall 2 would stand on the product's own merits, which include it being a 30% smaller and sleeker unit, with double the energy storage capacity at nearly half the cost per kWh of the previous model."
The Powerwall 2 has a usable capacity of 13.5kWh, an operating temperature range of -20 to 50 degrees Celsius, a 10-year warranty, and round-trip efficiency of 89%.
Another difference between the first and second generation Powerwall is that the Powerwall 2 is a plug-and-play type of battery that is fully integrated with Tesla's own inverter technology, which means it can be added to any solar system without the need to purchase extra inverters.
Other new specs include its ability to be wall mounted or ground mounted, as well as its ability to be used both to increase solar self-consumption and as a back-up power source, in the case of a grid outage like in South Australia recently.
"Tesla's mission is to accelerate the introduction of sustainable energy globally," Rive said.
"Storage is a lot more powerful of a tool than just saving energy in the day and using it at night."
According to Rive, an example of what can be done with storage on a large-scale is its ability to stop a power outage similar to the one in South Australia recently.
Rive points to the creation of Tesla's Gigafactory in Nevada, in particular, as an example on how the company can build that kind of capacity.
"Tesla could build battery storage capacity in 100 days that would stop a power outage similar to the one South Australia experienced state-wide in September last year," Rive said.
"We had a similar challenge in southern California and we got 80MW up in 90 days. That's unheard of - you just don't get power plants running up and down that fast.
"Because of the big factory that we've built that is now operational, that's caused a boost in production and made it cost effective.
"Combine that with integrating the inverter with the technology - it works very effectively, which is why we are very confident that this technology would have the ability to stabilise the grid.
"Tesla could install up to 300MW of grid-scale battery storage in that timeframe at a cost of about $66 million per 100MW. If you had storage deployed during the blackout in South Australia, you wouldn't have had the blackout."
Currently, each individual 14kWh Powerwall 2 will set you back $8000, with installation and hardware starting at $2000.
"I expect the cost of Tesla's battery storage would continue to decrease with the economies of scale already being achieved via the company's Gigafactory production, but probably not at the same rate of decline seen over the past year," Rive said.
"But already, home battery storage has hit that perfect point where it's a good investment for home owners - between 8-15% return on investment and a function of security and insurance."