Tesla Solar Prices Decline To Near The National Average
Recently, Tesla announced a new price cut and philosophy in its solar panel business. Sanjay Shah, Teslas head of solar, said that the reason they were able to reduce pricing is in their new methodology, which includes standardized system prices and having homeowners photograph and upload images of their electric meters, breaker boxes, and other equipment to reduce the need for individual site visits. We spent hours and hours and days and days on the process, he said. It adds cost. It adds time. We needed to have a very streamlined process.
What to Teslas new prices look like? Check out our table below to see what solar energy systems offered by Tesla will cost:
Tesla solar panel system prices
| System size |
|---|
| $24,272 |
What Is The Difference Between Teslas Solar Roof And Tesla Solar Panels
Tesla solar panels look like the solar panels youre used to seeing on roofs. They are installed on top of your existing roof and generate electricity for your home to use.
Teslas solar shingles are designed to look like traditional roofing materials, so you cant tell that there is solar installed on the roof.
Tesla solar shingles require a full new roof replacement, so the solar roof tiles don’t stand out from the rest of your shingles. Unlike their traditional rooftop solar panels, Tesla manufactures their solar shingles themselves at their Buffalo, New York gigafactory.
You can read more about how Teslas solar roof compares to conventional solar panels here.
Acquisition By Tesla Inc
On August 1, 2016, Tesla announced that it would be acquiring the company in an all-stock $2.6 billion transaction. Tesla’s mission since its inception has been “to accelerate the world’s transition to sustainable energy”. As part of Elon Musk’s “The Secret Tesla Motors Master Plan”, Tesla sought to expedite the world’s move from a mine-and-burn hydrocarbon economy towards a solar electric economy. The announcement cited operational and cost synergies, as well as integrated products. The proposal for acquisition was approved by antitrust regulators.
More than 85% of unaffiliated shareholders from Tesla and SolarCity voted to approve the acquisition on November 17, 2016, allowing the acquisition to close on November 21, 2016.
Some investors criticized the deal, calling it “a misguided effort to rescue two companies that depend on investors and the government for operating cash.” There is ongoing litigation against Musk and Tesla’s board of directors, alleging “they overpaid for SolarCity, ignored their own conflicts of interest and failed to disclose ‘troubling facts’ essential to a rational analysis of the proposed deal.”
Recommended Reading: Do I Qualify For Solar Tax Credit
Lower Your Electric Bill
One of the main reasons people use solar panels is to lower their electric bills. While the initial installation cost for solar panels is quite high, in the long run, it will save you money.
Consider the pay-off time of the solar panels compared with the warranty of the solar panel. The warranty lasts twenty-five years. This means that your solar panels are guaranteed to last that amount of time.
The pay-off time is roughly six to nine years. Therefore, once you have paid off the solar panels, the energy created thereafter is not costing you. You are using the energy of the sun to power your home. This reduces your energy bill.
Some homeowners find that they can eliminate their electric bills. Even if you still need to use the grid now and again, the electric bill would reflect that. Furthermore, electrical bills are very high and getting higher all the time. Solar panels offer a solution to combating these prices.
If the area you live in has higher electrical costs, then you will save more money with solar panels. The amount of money that you save via the solar panels correlates with the area you live in.
Do You Need To Install A Tesla Powerwall With Tesla Solar Panels
Yes, you have to install a Tesla Powerwall with Tesla solar panels. Tesla now requires all of their solar panel and solar roof systems to be paired with a Powerwall battery.
This can be beneficial if you were already considering battery storage for your solar panel system. However, if you live in an area with full-retail net metering this will just increase your installation costs without providing you with that much more in additional savings.
The savings may play out better in states with battery storage incentives, like in California where the SGIP battery incentive can cover over $2,000 of the total cost of a Powerwall.
Overall, Tesla now requiring their solar systems to be paired with Powerwalls wont make financial sense for most homeowners.
Recommended Reading: What Is The Best Solar System
Solar By Degree Project
The company is involved in a case concerning Martin Shain, the lead energy consultant in a solar power project at two Oregon universities. Shain was indicted for forgery in Marion County in August 2016. He is a consultant for BacGen Technologies in Seattle, a key player in the controversial $24 million “Solar by Degree” project and is accused of “creating a phony invoice from a fictional subcontractor that was pivotal in getting nearly $12 million in tax credits from the Oregon Department of Energy”. The project began in 2013 and was sponsored by the Oregon University System thousands of solar panels, generating millions of kilowatt hours of energy per year, were constructed on 21 acres on the campuses of Oregon State University and the Oregon Institute of Technology in Klamath Falls.
Elon Musk Explained Teslas Low Solar Cost In 2020
In 2020, Zach Shahan wrote an article for CleanTechnica after having a short chat with Elon Musk about the low cost of solar Tesla is offering.
Zach asked Elon Musk how it was that Tesla got the cost of rooftop solar so low, lower than seemingly anyone else in the industry. Elon said:
Solar panel cost is only ~50 cents/Watt. Mounting hardware, inverter and wiring is ~25 cents/Watt. Installation is ~50 cents/Watt, depending on system size.
The other solar companies spend heavily on salespeople, advertising and complex financing instruments. We do not.
This info came soon after Tesla announced rooftop solar would cost around $2 per watt across the country, $1.49/watt after the US federal tax credit. However, all of that just covers the cash cost. When financing, as many do, you also have to pay interest. This is where the news this week comes in. Offering 0.99% APR instead of 5.99% means further savings for people who go solar with Tesla.
Recommended Reading: Is Leasing Solar Better Than Buying
Us Solar Installations Rose By 46% In Q1 2021
Solar installations in the U.S. rose by 46% to over 5 gigawatts in the first quarter of this year, CNBC just reported. The article cited a report by Wood Mackenzie and the Solar Energy Industries Association. Here in the U.S., we are on track to install 24.4 gigawatts this year, which will be an increase of almost 24% compared to last year.
Technology costs have also declined to the point that solar is now competitive with power generated from fossil fuels.
Almost three-quarters of the total solar segment in the first quarter came from projects for utilities and other big customers. Much more is planned, too. This part of the market has almost 77 gigawatts worth of projects in the pipeline.
The demand for clean energy, especially solar, is high, and with more competitive costs and interest rates, it will only get higher.
So far, almost 100% of new power capacity added to US grids is coming from wind power and solar power. That led to 25.5% of U.S. electricity coming from renewables in March.
The Biden administration wants much faster growth, though. The sectors growth has also benefited from a long-standing generous federal tax credit for solar energy systems that the administration of President Joe Biden wants Congress to extend by a decade as part of its push to address climate change by investing in clean energy,CNBC writes.
Tesla Solar Installation Basics
Your Tesla solar panel installation will start with an in-depth consultation. Well cover how we size your system, your financing options, and everything you need to prepare for installation day.
Designing your systemWell help you decide how many solar panels you need to support your energy needs now and in the future, recommend the best setup for your home, and project your expected savings.
Now is the best time to plan for protection too. Integrate Tesla Powerwall home battery backup and guarantee security when it matters most, like during power outages. Powerwall can also power your home through the night, so you never have to rely on the grid again.
Installing your systemWhen you install your Tesla solar panels with Baker Electric Home Energy, youll never have to worry about whats next because well guide you every step of the way. Heres how a typical installation goes.
- On-site survey well never design and sell you a system without first visiting your home to make sure weve covered every detail.
- Obtain approvals and permits from your HOA, city, county, etc.
- Prepare for installation day your power may be off for a few hours to one day while we install your system
- Complete most installations within 1-3 days. Inspections will follow
- Get permission from the Utility to turn your power on.
- Show you how to operate and optimize your system.
- Support any questions you have as you start enjoying your new solar life!
Read Also: Can Sole Custody Be Changed To Joint
Solar Panel Manufacturing Process
Monocrystalline solar panels are produced from one large silicon block and are produced in silicon wafer formats. The manufacturing process involves cutting individual wafers of silicon that can be affixed onto a solar panel. Mono-crystalline silicon cells are more efficient than polycrystalline or amorphous solar cells. Producing individual monocrystalline wafers is more labor-intensive, and consequently, they are also more expensive to manufacture than polycrystalline cells. Monocrystalline cells have a distinct black aesthetic and are often associated with the sleek look of SunPowers premium panels.
Polycrystalline solar cells are also silicon cells, but rather than being formed in a large block and cut into wafers, they are produced by melting multiple silicon crystals together. Many silicon molecules are melted and then re-fused together into the panel itself. Polycrystalline cells are less efficient than monocrystalline cells, but they are also less expensive. They have a blueish hue that is often associated with the aesthetic of SolarWorld solar panels.
After the unique type of solar cell is made, solar panel manufacturers finish the process by connecting the electrical systems, adding an anti-reflective coating to the cells, and housing the entire system in a metal and glass casing.
Lets Examine The Estimates Found On The Internet
1. Motley Fool
A columnist for Motley Fool has made calculations to predict how solar shingles compare to a traditional roof. He estimates that based on a manufacturing cost of $ 0.30 per shingle is comparable to ceramic or concrete tiles. But be aware that the installation costs are extra: Tesla says that the cost price is $ 3 per watt installed (meaning $ 5880 per 100 square feet or $ 176,400 for a standard 3,000 square feet house.
2. Consumer Reports
Have developed a calculation including anticipated savings in electricity in order to be competitive with a traditional roof they determined that a maximum expenditure of $ 73,500 would be necessary in order to be competitive with asphalt shingle roofing, one of the least expensive solutions. According to information provided by roofing installation associations, and assuming an average house with a 3,000 square foot roof, the total cost of this asphalt shingle roof would be approximately $ 20,000. They then added an annual cost invoice of $ 2,000 in their calculation , and the life of the shingles being 30 years as stated by Tesla. After thirty years, savings are expected to rise to around $ 60,000. When the Powerwall, which is part of the installation of the electricity storage system for non-solarized moments, and which costs $ 6,500, the savings would be reduced to $ 53,500.
3. Energysage
Don’t Miss: What Is The Best Retirement Plan For A Sole Proprietor
The Checks And Balances Project
SolarCity indirectly funds a political advocacy group known as the Checks and Balances Project. The project has criticized the elected members of the Arizona Corporation Commission for being too well-connected to utility companies. The Checks and Balances Project has filed several requests for public records from the Arizona Corporation Commission. In July 2016, the Federal Bureau of Investigation interviewed the head of Checks and Balances as part of a larger criminal investigation into the financing of certain Arizona statewide races in 2014.
Vermont Projects Without Approval
In June 2017 the Vermont Public Service Board found that SolarCity was implementing solar projects in Vermont without approval required by law. According to Vermont Public Radio, Public Service Board Chair Anthony Roisman sent a letter to SolarCity warning the company that it needed to get regulatory approval before installing solar generation equipment and attaching it to the state’s electrical grid. Roisman wrote, “Over the past few months, my office has observed a pattern of procedural issues with net-metering applications being pursued by your company.” Officials at the company worked quickly to respond to the issue.
Read Also: How Many Solar Panels To Power Ac Unit
Common Issues With Solar Panels
Tesla Solar panels are relatively low maintenance. The materials they are made from making it so you do not have to worry too much about them. However, some issues can arise during the lifespan of your solar panels that are important to take note of.
Some of the common issues with solar panels include:
- Poor installation.
- Inverter Issues
- Snail Trails
These issues are common, but that does not mean that they will happen. Monitoring your system will help prevent a lot of these issues and will help them from worsening when you catch them early.
Solder Solar Cells Together To Create A Panel
After the phosphorus gives the silicon wafers their electrical charge, metal connectors link each solar cell in a process called soldering. The number of cells soldered together at once depends on how big the solar panel is being manufactured to be. For reference, 60 cell-panels are standard size, and 72-cell panels are generally used for commercial projects.
Recommended Reading: What Can You Run Off Solar Panels
Environmental Impact Fight Climate Change
Whether you choose to make the switch from your utility company to generating your electricity with solar panels or solar roof tiles, youve made a tremendous step towards improving the environment. Solar energy systems are a form of renewable energy to power your home or business. With more homes and businesses switching to solar, our community becomes less reliant on burning fossil fuels as our primary energy source. You can feel good about purchasing solar roof tiles because you are making a substantial impact on helping the USA realize a zero-carbon goal. By adopting solar power, you can help create a better society by replacing ozone-depleting substances with a green, renewable energy form.
Can You Make Your Own Solar Panels
For anyone wanting to install solar who is considering a do-it-yourself route, there are a number of factors to consider such as warranties, the longevity of output, efficiency and overall cost. To get a full sense of this breakdown, check out our article on the pros and cons of DIY solar. If youre looking for a personalized estimate for what a solar installation would cost based on your specific location and roof type, try our Solar Calculator. For homeowners interested in receiving quotes from local, pre-screened installers, check out the EnergySage Solar Marketplace.
Don’t Miss: How To Use A Solar Battery Charger
Should You Install Tesla Solar Panels
The real question, now that the first glimpses of Teslas new solar panels have been revealed to the public, is whether you should try to get a quote for them for your solar installation. First and foremost, no homeowner should make a final decision on their solar purchase without comparing multiple offers from different solar installers. Use a website like the EnergySage Solar Marketplace to find qualified solar companies near you and get quotes to give you an idea of what solar costs in your area.If youre a diehard Tesla fan willing to wait out possible production delays and pay a price premium, it may be worth looking into Tesla solar panels. However, there are other companies that manufacture all-black panels today, including Panasonic, the very company thats producing Teslas solar panels. When you join EnergySage, simply request quotes that include all-black solar panels so that you understand how much of a price premium youll actually pay, and how that impacts your long-term solar savings. You can even request all-black Panasonic solar panels when you join the EnergySage Solar Marketplace today.
Word Of Caution: Silicon Is Usually Made Overseas
With the exception of First Solar , the solar panels listed above all use silicon to turn sunlight into electricity.
The raw material for the silicon wafers that make up a solar panel is called polysilicon. Polysilicon is melted down into ingots which are then sawn into wafers that make up the individual solar cells in a solar panel.
While the final assembly of a solar panel might happen in America, the raw materials such as aluminum, glass, and polysilicon might be sourced from anywhere on the globe.
China dominates the worlds production of polysilicon, silicon wafers, and solar panels, but that wasnt always the case. The United States was a solar panel manufacturing powerhouse as recently as last decade, but trade wars that included US duties on Chinese solar cells in 2012 and retaliatory duties imposed by China on US polysilicon in 2013 resulted in the rapid loss of US market share.
Now, Chinese companies dominate global polysilicon manufacturing. Here are the top 10 global companies according to Solar Power World:
While two companies have a US presence, Southeast Asian – China in particular – make up the majority of global manufacturing.
The US has now banned imports of polysilicon and polysilicon products made by 5 companies, including Hoshine.
Don’t Miss: Where Do Solar Panels Come From
