Tesla Reduces Pricing Of Solar System Installations By 10-20%

NOV 16 2018 BY MARK KANE 16

Tesla solar panels become more affordable

Tesla Energy division decided to decrease prices of its conventional solar panels, produced at the Tesla Gigafactory 2 with Panasonic.

According to news, prices will be $3,000-$5,000 lower for average residential installations, which translate to about 10-15% of overall cost. In the case of bigger installations, it could be up to 20% less.

The reason behind making solar installations more affordable is“vertical integration”. We assume that several factors contributed to the reductions:

  • in-house production of solar panels with Panasonic, instead of purchasing it from external suppliers
  • integration of solar products into Tesla’s retail stores and the increased efficiencies over the past year
  • closing more expensive sales channels like door-to-door sales
  • sales of solar in combination with Powerwall (the prices of Powerwall increased)

According to a Tesla spokesperson, via Electrek:

“As a result of the vertical integration of our solar products into Tesla’s retail stores and the increased efficiencies we’ve realized over the past year by closing more expensive sales channels like door-to-door sales, we are now able to reduce prices for our solar power systems. As a result of this pricing change, our average customer will see a savings of between $3,000 and $5,000. This change, along with our push to continue shortening the time between sale to installation, will accelerate the adoption of solar and the world’s transition to sustainable energy.””

The price reductions don’t concern the Solar Roof product (highly-behind schedule) that still is going through production hell.

Source: Electrek

Categories: Tesla

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16 Comments on "Tesla Reduces Pricing Of Solar System Installations By 10-20%"

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If 10-15% equates to $3,000-$5,000 less cost, then we’re talking about $30k solar systems. Those are huge numbers for residential systems!

I have a little over 6 kW of solar PV on my house, with the first system installed in 2010 when prices were still very high, and that cost me way less than 10 k euros (including 20% VAT). I always wonder why PV system prices are so high in the States.

These companies are in it to make a profit. I installed my own 6kW system in California for $10K and then received a 30% federal tax credit resulting in a cost of $7K. Here is a link to solar panel prices in the US:

Interesting how the ‘technology’ hasn’t changed much in the past 5 years, if that Table is any example. I remember high priced panels 4 1/2 years ago were about 330 watts each, but I bought the cheapest junk I thought was reliable, or “A GRADE” – no problem so far with my somewhat crappy 240 watt panels – although, knock on wood, they’ve been 100% reliable.

Its the MicroInverters that some friends have that turned out to be a Joke – and much more expensive. I didn’t go that route since I wanted only a centralized model instead of 38 inverters, and I figured that the main inverter running in a cool basement would have far greater longevity than one under the hot August Sun. Turns out I’m right so far.

Markups, labors and profits…

Solar City sold me a 3kW system for $13K back in 2013 after all incentives. That is how expensive it was.

Of course, the larger the system the cheaper it is per kW.

I admittedly got a good price on mine, but it was about $8500 after all incentives in 2014. 9.12 kw for tax purposes. Of course NY State has better incentives than California since it takes so many more panels to get the same about of yearly KWH since the system can only work 8 months out of 12.

I called TESLA (then Solar City) at the time, but they said they didn’t work in my area since they couldn’t make any money at it – too much competition from the locals. It is a bit ironic that the panels are made here yet they don’t want to sell them here.

“$8500 after all incentives in 2014. 9.12 kw ”
Holy cow!!! even today that’s impossible to beat in CA.

Anything less than $2/W installed price is a steal! You got it for less than $1/W. Unbelievably good.

(I did part of the work myself – but don’t tell anyone – that was the reason for the good price).

I have 2 basement inverters 4050 watts each, which at 8100 watts isn’t so much of a limitation on 9120 watts of panels since the units so rarely hit the peak (4050 watts at each inverter for only a few minutes each day during the peak month)

Complicated permitting, excess system complexity etc. due to crazy regulations are the main cost drivers for PV in the US. In Europe, average system costs a bit more than half of US; and in Australia even less than that.

Yeaaaah… Vertical Integration.
You do not lower prices just because you can. You do it to increase demand:
– your demand figures were too low
– or you increased production capacity and need to sell that additional products

Whats the reason in this case?

Unless you are production-constrained (which is rarely the case in general), demand is *always* “too low”, in the sense that you’d like it to be as high as possible. It doesn’t mean there is any specific problem, as you are implying.

Tesla. Here is a thought for you. You have leased out LOADS of solar panels. For many of us, we KNEW that the technology would improve a great deal. Now, you have tesla roofs.
Approach us leasees, buy us out, and sell them your tesla roof. We in Denver basin are LOADED with roofs that are mangled by hail. Your roofing is perfect for it. if not now, then at least hit this area, well, once we are hit by hail.

Then put the old solar panels on BUSINESSES, or parking lot.

I doubt the profit from a new solar roof would cover the losses for buying out and dismantling an older system…

I always kind of did find Tesla’s products kind of expensive.

Personally this is good.

LG did the same thing were they cut their TV prices by 15% to avoid getting under cut by low cost TV’ markers to keep their market share and it’s working.

Article title: Tesla reduces pricing of solar system installations

Installing to the whole solar system – wow! Tesla is upscaling!