PSA: Tesla solar panels $1.70-$1.99/watt

[Ulmo]

Long time reader first time poster in these cost of PV threads.

Does anyone know why prices are so high in the US? I am comparing to AUS.

Is it town or utility permit costs that get built into the quotes? Are the panels actually more expensive? Perhaps due to tariffs? Is it too early in the cycle that there isn't really good competition? Or does Tesla charge a premium over other installers?

Here in Aus I paid $1.94 (AUD) / Watt fully installed back in 2012 for top quality panels and a top quality inverter (after incentives - would have been closer to $2.50 before incentives). No need for microinverters or optimisers since I have no shading.

Today I could buy a price leading (e.g. not top quality) system for AUD$0.65/W after incentives (e.g. Best Solar Panels Australia | Solar System | Arise Solar) fully installed.

From a reliable source that surveys various quotes, and categorises the systems being quoted, even a premium 5kW system is coming in at AUD$1.36 and microinverter system at AUD$1.63 (see Current solar power system prices: Residential and Commercial - Solar Choice for details of this for various cities and the average). Prices drop, of course, for larger systems. For example, in Perth (probably the most competitive market, because it has both plentiful sun and high electricity prices), for a 7kW Premium system, it is AUD$0.92/W.

Of course, all of those costs are AUD$, and converting to $USD by multiplying by 0.7 means that a premium microinverter 5kW system is coming in at USD$1.14/W, and a premium central inverter system is coming in at USD$0.95/W. The Perth 7kW system is USD$0.65/W, and a cheap 5kW system is as little as USD$0.46/W.

I think exchange rates matter - pretty much all of our panels are imported, and all of our inverters are imported (there's a small local manufacturing presence in inverters and panels, but they are very expensive).

By far the highest cost in USA is taxes and regulation, and to various extents, the extra margin solar panel installers charge for installation. The materials are a tiny fraction of the cost of solar panel systems.

 

[mspohr]

By far the highest cost in USA is taxes and regulation, and to various extents, the extra margin solar panel installers charge for installation. The materials are a tiny fraction of the cost of solar panel systems.

I think it's"customer acquisition". Tesla's new online approach attempts to cut those costs.

 

[RFernatt]

Ironically, after participating in this thread, my SolarEdge 11400 inverter did fail a few weeks ago. Waited a week for the replacement to arrive, but it was swapped out in a couple hours or so. It would have been quicker, but they sent a newer H series inverter and some of the conduit/wiring had to be adjusted. I do like this new H series inverter (runs cooler), but I have actually seen a little bit of clipping with it where the older model would exceed the 11400 rating for periods of time. Not enough clipping at that level to worry about though.