On June 19, 2020, Tesla announced a new home solar offer (conventional solar panels) for the U.S. market with a goal of beating competitors on pricing.
The company says that its average system size is now one-third less expensive than the industry average and introduced a lowest-price guarantee. The message sent to the consumers is clear - you will struggle to find a cheaper offer.
Moreover, those who are not happy with the outcome, can uninstall the solar panels and get a full refund.
Here are the standard types:
- Small 4.1 kW: $10,000 ($7,400 with federal tax credit)
$2,439/kW ($1,805 with federal tax credit) - Medium 8.2 kW: $16,000 ($11,840 with federal tax credit)
$1,951/kW ($1,444 with federal tax credit) - Large 12.2 kW: $23,500 ($17,390 with federal tax credit)
$1,926/kW ($1,425 with federal tax credit) - Extra Large 16.3 kW: $30,000 ($22,200 with federal tax credit)
$1,840/kW ($1,362 with federal tax credit)
See also
If the solar installation cost really has become the lowest-ever, EV users might be willing to switch to renewable energy sources more than ever.
According to Tesla, the switch will pay off, compared to grid electricity costs:
"With our new pricing, an average customer buying a large system in California will make their money back in only six years by reducing their electric bill, ultimately making an average of $88,000 over the system’s lifetime. In New Mexico, that same system will make an average of $55,000 over its lifetime and in Vermont, $47,000. All systems, in all states, generate more value than ever when purchased with cash or financed with a solar loan. Savings will vary based on state laws and local utility rates. We also offer low-cost subscription solar for a fixed monthly payment in six states that you can cancel anytime."
One might ask, why is home solar now cheaper? Is there any breakthrough? Tesla explains that it's a result of "several simple improvements", including:
- fixed sizes of installations for quick and easy ordering and installing, without hours in consultations, and 64% lower marketing costs
- "our internal software platform now automates solar panel placement for energy optimization on a roof, significantly reducing the time needed to design a new system"
- new premium panels with higher power and efficiency
- integrated software and hardware that reduces the cost of solar interconnection
Besides the solar panels, Tesla offers also the Solar Roof (for entire new roof installations) and energy storage systems (Powerwalls), which can be integrated with the home solar installation.
The Lowest Price for Home Solar
Today we are introducing the lowest-ever cost to go solar in the United States. Our average system size is now one-third less expensive than the industry average and we have recently introduced a lowest-price guarantee. If you change your mind after purchasing or are unhappy with the system, we will uninstall it and issue a full refund within seven days from system turn on.
With our new pricing, an average customer buying a large system in California will make their money back in only six years by reducing their electric bill, ultimately making an average of $88,000 over the system’s lifetime. In New Mexico, that same system will make an average of $55,000 over its lifetime and in Vermont, $47,000. All systems, in all states, generate more value than ever when purchased with cash or financed with a solar loan. Savings will vary based on state laws and local utility rates. We also offer low-cost subscription solar for a fixed monthly payment in six states that you can cancel anytime.
Our new pricing is made possible by several simple improvements to a decades-old industry. We made ordering and installing solar easy by moving to fixed sizes that customers can order with a single click online — no more need to spend hours in consultations reviewing old utility bills. More than 80 percent of our customers move forward with the standard size recommended by our website, and the move to a digital experience helped cut our sales and marketing costs by 64 percent.
We used these savings to make solar more affordable for customers, and also to build software that improves the experience of going solar. Our internal software platform now automates solar panel placement for energy optimization on a roof, significantly reducing the time needed to design a new system. We also continue to invest in core technologies that raise the efficiency of our solar systems, including new premium panels with higher power and efficiency, as well as integrated software and hardware that reduces the cost of solar interconnection and makes pairing solar with Powerwall easier than ever.
Check out our solar pricing and options on our website.