I had my site survey completed earlier this week, and was presented today with a proposal for an 8.24kW system, with a gross price of $18K, minus upfront incentives/rebates of $9K (I am in IL), minus the fed tax credit of $5K (which I will take), thus yielding a net system cost of $4K (all figures are rounded). Will offset 62% of energy usage. Is this a no-brainer at this price?
-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
Quote - too good to be true?
- Thread starter ordel
- Start date
Yes, it would be a no-brainer at that price, but most likely there's some kind of error in the quote. Are you sure the $18K doesn't already include the upfront incentives and rebates? That would match the $5K tax credit figure, since it would be on the amount after rebates, not the gross amount.
2012MS85
Member
I’m worried about two big items related to your quote from Tesla:
1. How can Tesla possibly make a profit at those prices? (Rhetorical question...they can’t.)
2. Why wouldn’t Tesla be using their own 325w solar panels that they’re supposed to be producing on a massive scale at Gigafactory 2 in Buffalo, NY?
1. How can Tesla possibly make a profit at those prices? (Rhetorical question...they can’t.)
2. Why wouldn’t Tesla be using their own 325w solar panels that they’re supposed to be producing on a massive scale at Gigafactory 2 in Buffalo, NY?
2012MS85
Member
Yes. 100% no brainer at those prices. I live on the Iowa/Illinois border and have never seen $2.18 per watt in either state (or any other US state for a small residential installation). Quickly sign Tesla’s contract and ask for installation tomorrow (before Tesla realizes how much money they left on the table).
Jaywlker
Former Vendor
I would jump on that. That figure is less than what you could likely do on your own, as a self-installer.
Shygar
Member
Are you buying the system or leasing it? Assuming you're buying but you may just want to make sure that's what's on the quote.
Make sure they included an inverter
Make sure they included an inverter
Buying. There is nothing missing in the quote. In fact the Tesla rep wrote me an email telling me how it is an AMAZING deal (she used all caps) to get an $18K system for under $4k.
But it is an interesting question as to whether the fed tax credit was calculated correctly. In the other two quotes that I received from Tesla before this latest post-site-assessment quote, Tesla also calculated the 30% credit based on the gross system cost, not the net cost after state incentives/rebates. In an initial search on the IRS website, I do not see support for this methodology. Would be interested to know whether others have considered this question.
But it is an interesting question as to whether the fed tax credit was calculated correctly. In the other two quotes that I received from Tesla before this latest post-site-assessment quote, Tesla also calculated the 30% credit based on the gross system cost, not the net cost after state incentives/rebates. In an initial search on the IRS website, I do not see support for this methodology. Would be interested to know whether others have considered this question.
One piece of advice based on the experiences of others in these forums: make sure you get in writing what they're installing. There were several stories of Tesla showing up with Delta string inverters to customers who had been told they were geting SolarEdge inverters. In your case the panels are less important, since they seem to already have promised you cheaper ones for your system.
2012MS85
Member
The 30% federal tax credit is based on the total cost of what you PAY. Simple example, I paid $50,000 for my 16.1 kw system, so my 30% tax credit reduced my federal taxes owed by $15,000.
2012MS85
Member
Did Tesla provide a detailed breakout of IL’s $9k in “upfront incentives/rebates”? I don’t know about IL; Iowa also had a 15% rebate, capped at $5k. So I hit the cap and also had my Iowa taxes owed reduced by that $5k. So in my case, the federal and state tax credits both were computed off my $50k gross (which was the amount of my check written out to my professional solar installer). Those $20k in tax credits obviously have a one year delay, as you only “receive” them when you file your taxes next year (and you obviously only benefit if you owe that much in taxes). So you’ll still need access to $18k today.
If I recall correctly, I think IL has a generous solar REC program, which earns you future “rebates” tied to your ongoing solar production. That is likely part of the $9k that you’ll receive back over future years.
Actually the relatively new IL program offers a fixed payment (for the RECs) up front to the installer, so there is no long-term payment stream that the homeowner has to factor in at all. The incentive would go to Tesla energy, and it taken directly off the top when calculating what is due to Tesla. In my case, their quote specifically describes the amount due to them as being the net of the gross price, minus the state incentives.
2012MS85
Member
Very interesting. Do you know how much IL gives upfront to the installer? That could explain the super cheap quote by Tesla.
It's in my numbers above. The amount they give to the installer is the upfront incentives/rebates.
I'm currently still deliberating because the design that they have proposed would require a significant portion of panels to be placed where they are visible to anyone looking at the house from the street. Around here, there are zero panels on any houses, and it isn't exactly the most attractive addition to a residence.
nomis_nehc
Member
TheTalkingMule
Distributed Energy Enthusiast
Never heard of Tesla quoting below $3.25/Watt initially, or below $2.95/Watt once forced to match a competitors bid.
Would LOVE for this to be a legit price available to customers in IL but I image it's some sort of error. If Tesla were running a short term marketshare initiative, they could just make their standard quote $2.40/W and the business would pour in faster than they could install.
To maintain perspective on how absurd US pricing is....$2.18/W is fairly standard in places like Germany and Australia. We'll get there some day.
Would LOVE for this to be a legit price available to customers in IL but I image it's some sort of error. If Tesla were running a short term marketshare initiative, they could just make their standard quote $2.40/W and the business would pour in faster than they could install.
To maintain perspective on how absurd US pricing is....$2.18/W is fairly standard in places like Germany and Australia. We'll get there some day.
Similar threads
