Tesla Solar now 30% less expensive than industry average with new pricing
Tesla has updated its solar panel offering with new pricing and it now claims to be “one-third less expensive than the average solar industry” prices.
Tesla has slashed prices on its solar panel installation and introduced a new more powerful module.
On Saturday, Tesla officially announced the changes:
“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.”
The automaker described the impact of the new cheaper pricing:
“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.”
Tesla’s claim is based on the Solar Energy Industry Association’s report that in Q1 2020, the average residential solar price was $2.83 per watt.
With the new prices, Tesla’s ‘Small’ system costs $2.44 per watt, ‘Medium’ is $1.95 per watt, and ‘Large’ and ‘Extra Large’ are $1.93 per watt and $1.84 per watt respectively.
After federal tax incentives, the total cost comes out to $7,400 for a small system, $11,840 for a medium system, $17,390 for a large system and 22,200 for an extra large system. All prices are subject to state laws and local utility rates.
The new pricing was made available through Tesla’s savings from moving to fixed sizes after more than 80 percent of Tesla Solar customers were found to select the recommended standard size as well as a 64 percent cut in Tesla’s sales and marketing costs after moving to digital.
“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,” the company said. “In New Mexico, that same system will make an average of $55,000 over its lifetime and in Vermont, $47,000.”
In addition to making solar more affordable for consumers, Tesla was also able to use the savings to make software improvements.
“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,” the company said. “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.”
It might be the first time that a product other than a vehicle is featured first on Tesla’s website, which says a lot about Tesla’s commitment to expanding its solar business.