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Solar Roof, big price increase

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This entire thing is ridiculous. We signed original contract back in July 2020. Initial permits from town received at our house in August 2020. Finally saw Tesla’s design plan in October 2020. Had many conversations over the fall and settled on design in December 2020. Tesla came for site inspection in February 2021. In March they came back with changes based on site visit and we eventually came to an agreement. They said we still needed permits. Was notified on 4/5/21 that our permits came in AGAIN and we decided to change from financing through Tesla to paying cash and they required a new contract be signed. Signed new agreement on 4/5/21 and Tesla advised they would be contacting us by end of week to schedule. Then we get the increase on 4/10. Not nearly as drastic as some people (net increase of $11k, 25%) but nothing changed between 4/5 and 4/10 to warrant a change. Everything about costs and our roof were all known factors when they entered into an agreement with me on 4/5/21. So incredibly frustrating to come so close. It’s so hard to even consider moving forward cause I simple don’t trust Tesla anymore!
 
Also forgot to mention I anticipated something like this might occur to pending contracts when they started to change pricing on their pricing tool.
Just seems most folks need to get on with their life and make decisions. Companies can use the legal process to in most cases win. Their lawyers are smart.
I have had a number of things in this path that if I had known, I could have done differently and gotten "more" stuff. But that is not what has happened. Not worth wasting negative energy on something I cannot win on.
I agree. It’s more annoying than anything. I’m not going to fight this more than a few emails maybe.
Also forgot to mention I anticipated something like this might occur to pending contracts when they started to change pricing on their pricing tool in Feb.
I got my advisor to email me in writing confirming my project pricing rates per kWh and $/sq ft and saying it won’t be subject to the new pricing on their website. This was on March 23. Again I don’t think they’ll honor it...but it’s more in writing that they’ll have to reneg on.
 
I see you are responding to someone else , though your comment reminded me of my installation (traditional modules on the roof) from a local company 5 years ago. After I signed the contract and they started the installation, for whatever reason they could no longer get the modules that I ordered. They had to get more expensive ones (about 45 watts more per unit) to put on my roof. The solar company absorbed the cost increase ! Nice to know there are some companies around that will do such a thing and didn't pass it along to me.
We are a small solar company and once a contract is signed we honor the price. I am amazed at Tesla is doing this. For about a year we have been actively trying to partner with Tesla but now I am having serious second thoughts as we would never treat our customers this way.
 
Just seems most folks need to get on with their life and make decisions. Companies can use the legal process to in most cases win. Their lawyers are smart.
I have had a number of things in this path that if I had known, I could have done differently and gotten "more" stuff. But that is not what has happened. Not worth wasting negative energy on something I cannot win on.


Dude... don't get people to advance out of step 2 and 3 until they're ready.


Denial; people thought it was a fake email or prank from Elon.
Anger; is very attractive and sometimes people stay here for years. For example, I've hated PG&E for only 1.5 years, but the anger will last a lifetime.
Bargaining; Some people hope appealing to arbitrators or Papa Elon will solve things. (edit: added link to put Papa Elon in context)
Depression; Eventually they'll get some ugly solar panels on their roof and feel deep sadness.
Acceptance; But then they'll see their lower energy bill and a Rivian in their driveway and feel much happiness.
 
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Dude... don't get people to advance out of step 2 and 3 until they're ready.


Denial; people thought it was a fake email or prank from Elon.
Anger; is very attractive and sometimes people stay here for years. For example, I've hated PG&E for only 1.5 years, but the anger will last a lifetime.
Bargaining; Some people hope appealing to arbitrators or Papa Elon will solve things. (edit: added link to put Papa Elon in context)
Depression; Eventually they'll get some ugly solar panels on their roof and feel deep sadness.
Acceptance; But then they'll see their lower energy bill and a Rivian in their driveway and feel much happiness.
So true, and I would at first be pissed. But, man, life is just too short, but I understand. Just do not see any real solution to winning, which is when I just move along.
 
We are a small solar company and once a contract is signed we honor the price. I am amazed at Tesla is doing this. For about a year we have been actively trying to partner with Tesla but now I am having serious second thoughts as we would never treat our customers this way.
great, and I might add that you are in my favorite part of the USA ;)
 
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I did the same on Monday. I also filled out a Consumer Protections Complaint form with MA State Attorney General's office. MA is pretty progressive about consumer protections, and has a lot of recently announced Green Energy goals, so I suspect they won't like this behavior toward instilling confidence for consumers. I'll probably wait a week or so to give Tesla a chance to do anything to rectify, but I've already got my new solar and shingle roofing quotes now. Seems local solar installers using same equipment as Tesla (QCell G6+ and Solar Edge) are ~$5k more - curious if anyone's had luck in closing the gap. I can't bring myself to pay Tesla anything after this.
I just did the same this evening, filed a complaint with both SEIA and the MA AG's office.
The Consumer Advocacy and Response Division of the MA State Attorney General has agreed to advance my complaint to Tesla Energy. I am sure I'm not the only one in this state that is affected but they've said nothing about any other complaints they've recieved.
I just filed the complaint just now and got the auto-response acknowledging receipt and a copy of the complaint. I made note that this was a wide-spread action on Tesla's part and I was probably not the first to complain.

I should note: I informed my project advisor that I was considering my options before agreeing to the updated price or cancelling. For us, it's an 18% hit up front. After incentives, in theory it could be ~$5k which is doable but....
 
Yeah I see they mention complexity, but my roof design “revision” (read only higher price) says nothing about the complexity. I saw their graphic. My roof is 2300 sq ft, is 5 rectangles with 3 vents and no joints. They increased it 27%. I also think it would have been more defensible if they didn’t increase all complexities of roofs.
Same - what Telsa is offering is just a new set of numbers with no change in system design, specification or any reference to any type of complexity. Since I haven't accepted (or declined for that matter) the new pricing, I don't know what document gets churned out next for e-signature, or what new design docs are generated. Sitting tight for now.
 
Same - what Telsa is offering is just a new set of numbers with no change in system design, specification or any reference to any type of complexity. Since I haven't accepted (or declined for that matter) the new pricing, I don't know what document gets churned out next for e-signature, or what new design docs are generated. Sitting tight for now.
Noticing they've been pushing hard to get people to cancel. Like I care about the $100 deposit for what they're asking.. Not canceling and just going to sit and watch too.
 
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So, just to address some of the specific points some people made about whether the contract allows for such a price change. Everyone can compare their new contract pricing with the old one by looking at the individual line items to see what changed and how. In my specific case

Roof (2477 sq.ft) - price went up from $18,948 to $34,676. In the new contract it's split into Materials ($11,790) and Labor ($22,886), so just labor alone is now more than what was quoted for both materials and labor originally. The cost per square foot went up from $7.65 to $14.

Solar Roof (10.6 kW) UNCHANGED at $21,270. Again, in the new contract they split it into materials and labor, but it adds up to the same amount as in the original contract.

2 Powerwalls - price went up from $14,500 to $17,000.
Powerwall Installation - unchanged at $3,000
Powerwall + Solar Discount - discount was REDUCED from ($2,500) to ($2,000)

So, they changed 3 things: 1) the base price of the roof, 2) the price of powerwalls and 3) the discount. The bulk of the change is in the #1, but that is the only thing that can possibly be justified under the "unforeseen conditions" clause. There is no way they can justify the change in the price of the Powerwalls or the discount.

Now, they claim that the change in the cost of the roof is due to the complexity, but my roof is "simple" according to their new classification. I played with the configurator to get it to quote me based on the actual size of the roof and the quote for a simple roof closely matches the new contract price.

In other words, it is pretty clear that these price changes have nothing to do with any "unforeseen conditions" and are simply the new pricing policy being forced onto existing signed contracts.
 
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My SR price hasn't changed, Los Angeles area. I reserved it last month (March 2021), key is I have a simple roof. 7.25 kW, 2 PW

Solar Roof$26,271.08
2 Powerwalls$19,000.00
Installation CostIncluded
Install Solar Roof + Powerwall together-$2,000.00
Taxes$2,579.99
Solar Renewable Energy Credit-$435.00
Deposit-$100.00
Total Amount Due$45,316.07
Federal Tax Credit-$10,049.63
Price after potential incentives$35,366.44
 
Now, they claim that the change in the cost of the roof is due to the complexity, but my roof is "simple" according to their new classification. I played with the configurator to get it to quote me based on the actual size of the roof and the quote for a simple roof closely matches the new contract price.

In other words, it is pretty clear that these price changes have nothing to do with any "unforeseen conditions" and are simply the new pricing policy being forced onto existing signed contracts.
Yeah - if Tesla had left the price unchanged for a simple roof, maybe - and I would sill say it is a maybe - they could claim unforeseen conditions at the installation location were the reason for increasing all the moderate and complex project costs, but your project demonstrates that there has to be more going on. And increasing the PW price (including lowering a discount) further demonstrates that this is quite simply a price hike.

I know it still does not fully answer the question of whether Tesla is in breach (based on this or other clauses they can cite,) but it seems clear that whether or not this was "unforeseen conditions", it clearly was not unforeseeable conditions. Tesla should not be doing this to customers, and if cost was an issue, Tesla should have been more proactive about raising prices for new contracts earlier and/or hedging their positions as they allowed a backlog to grow.
 
I agree, in your case the sliding scale of all the possible scenarios out there, it seems for your case to be a much more clear breach of contract. But even with a clear breach, my assertion is your damages aren't going to be the cost differential between their previous quote and new quote.

Tesla did the work to move your meter to increase safety, so if you do not accept their new terms they'll probably be the ones to have eaten that cost when you decide not to move forward with the breached contract.

Your house isn't in dire straits where you need a roof or it'll be leaking next rainfall. Your house is habitable as it was before, and there is not equipment/trash strewn about your home from the construction work.

None of this is to say what Tesla did is "right". My point remains that without clear damages, there's nothing to collect. Yes you wasted lots of time. Yes you have added stress and this definitely sucks. But unfortunately those aren't damages unless you can prove the time you spent with Tesla actually cost you something in terms of being unable to sell your house, perform your normal job, etc.
Except the meter work isn't finished. They mounted the conduit but haven't hooked it up. They were supposed to coordinate with the utility for switch-over later this month. There's a hole in my roof that has some temporary flashing around it where they had to bring the utility mast up through. It looks like the way they did that they were expecting it to be made flush when the new roof was put on. This is a mess.
 
So I exported my executed agreement (2020) and the newly proposed one (2021) as Word, then compared to show changes. I'd recommend it for anyone considering signing the newly proposed "agreement". Some fun nuggets:
  1. Newly added: "You agree that a definite completion date for the installation is not of the essence."
  2. They no longer cite ASTM D 3161 Class F for wind rating in the limited warranty, and instead just mention a wind speed for 139 mph
  3. Newly added: "Home Owner’s Association. If your home is governed by a home owner’s association or similar community organization, you agree to obtain all approvals and authorizations for the System required by that organization and advise us of any requirements of that organization that will otherwise impact the System, its installation or operation."
There's a lot of edits, some seemingly minor, but could have large implications.
 
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So I exported my executed agreement from the newly proposed one as Word, then compared to show changes. I'd recommend it for anyone considering signing the newly proposed "agreement". Some fun nuggets:
  1. Newly added: "You agree that a definite completion date for the installation is not of the essence."
  2. They no longer cite ASTM D 3161 Class F for wind rating in the limited warranty, and instead just mention a wind speed for 139 mph
  3. Newly added: "Home Owner’s Association. If your home is governed by a home owner’s association or similar community organization, you agree to obtain all approvals and authorizations for the System required by that organization and advise us of any requirements of that organization that will otherwise impact the System, its installation or operation."
There's a lot of edits, some seemingly minor, but could have large implications.
The first seems to be a way for Tesla to dodge any claims over what might be considered a reasonable timeframe for the install (which, as I understand, a court/arbiter could determine where the contract does not have firm dates.) I could conceivably see cases where a customer tried to take action if they had a contract with a "3-6 months" estimate that took over a year, for example.

On the second item, ASTM D3161 Class F is a wind rating for 110 mph. So, it is possible that the 139 mph number is actually a better warranty. I know Tesla had been working on getting certified to higher wind ratings so that they could do installs in hurricane areas. This might be a placeholder until they get that. And their website still lists the ASTM certification.

The third point isn't necessarily unreasonable, but it might be a big change for those impacted. In the past, reports were that Tesla would work with homeowners to navigate the HOA bureaucracy. I wonder if they dropped that department and if they are adding the same provision for solar panel installs.
 
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The first seems to be a way for Tesla to dodge any claims over what might be considered a reasonable timeframe for the install (which, as I understand, a court/arbiter could determine where the contract does not have firm dates.) I could conceivably see cases where a customer tried to take action if they had a contract with a "3-6 months" estimate that took over a year, for example.

On the second item, ASTM D3161 Class F is a wind rating for 110 mph. So, it is possible that the 139 mph number is actually a better warranty. I know Tesla had been working on getting certified to higher wind ratings so that they could do installs in hurricane areas. This might be a placeholder until they get that. And their website still lists the ASTM certification.

The third point isn't necessarily unreasonable, but it might be a big change for those impacted. In the past, reports were that Tesla would work with homeowners to navigate the HOA bureaucracy. I wonder if they dropped that department and if they are adding the same provision for solar panel installs.

We have an HOA where we live and before scheduling our solar panels/PWs had to have written approval submitted back to them before install. We did contact their dept for HOA assistance and sent them our HOA form that needed filling out. They gave us the info for the bonding agency and some other answers that needed input from Tesla’s end but it was basically just contact for filling out the HOA request form. Our association has lots of homes with solar arrays already so not a new thing for them and we got approval within days. The solar roof is obviously more complex so might require more input from Tesla in completing forms or answering concerns of an HOA but I don’t see the addition of HOA approval any different than solar panel installs.

I would think regardless of type of roof applied HOAs including ours would require approval from a structural and aesthetic angle.
 
Except the meter work isn't finished. They mounted the conduit but haven't hooked it up. They were supposed to coordinate with the utility for switch-over later this month. There's a hole in my roof that has some temporary flashing around it where they had to bring the utility mast up through. It looks like the way they did that they were expecting it to be made flush when the new roof was put on. This is a mess.

Yeah I hope Tesla at least rectifies your situation ... have you informed them that they have in fact started work and it would take you $xxxx to restore your meter and roof back to a code complaint state? Since they have started construction, I think an arbitrator would deem Tesla responsible to at least restore your home. But hopefully Tesla does right on you and finishes the job they started.

Their Illinois license would be in Jeopardy if they receive claims of this type of behavior where leaving homes with incomplete construction or demanding higher costs to continue (not start) promised work. This kind of becomes a form of extortion if they hold your home’s in-progress state hostage to hit you with a higher bill.
 
New email from Tesla Energy. I already had canceled 2 days ago. Interesting they are now offering to possibly reimburse for prep work already done. I've already upgraded my AC to one compatible with Powerwalls. I wonder if it is worth sending that receipt in.




As we shared recently, we increased the price of Solar Roof and have added pricing adjustments for individual roof complexity. We understand this change may result in your cancellation, but we appreciate your continued support. Learn more

To move ahead with your installation, please accept the updated agreement that will be sent to you separately, if you have not done so already.

If you are no longer interested in moving forward with Solar Roof, you can cancel your order by logging into your Tesla Account and your order payment will automatically be refunded.

If you cancel your order and have completed prep work to your home or property directly for the Solar Roof installation, please send your receipts to [email protected] within 30 days of receiving your updated order agreement for our review and reimbursement after we review.

Thank you for working with us to accelerate the transition to sustainable energy.

Best Regards,
 
New email from Tesla Energy. I already had canceled 2 days ago. Interesting they are now offering to possibly reimburse for prep work already done. I've already upgraded my AC to one compatible with Powerwalls. I wonder if it is worth sending that receipt in.




As we shared recently, we increased the price of Solar Roof and have added pricing adjustments for individual roof complexity. We understand this change may result in your cancellation, but we appreciate your continued support. Learn more

To move ahead with your installation, please accept the updated agreement that will be sent to you separately, if you have not done so already.

If you are no longer interested in moving forward with Solar Roof, you can cancel your order by logging into your Tesla Account and your order payment will automatically be refunded.

If you cancel your order and have completed prep work to your home or property directly for the Solar Roof installation, please send your receipts to [email protected] within 30 days of receiving your updated order agreement for our review and reimbursement after we review.

Thank you for working with us to accelerate the transition to sustainable energy.

Best Regards,
Interesting - seems like they have now realized that - whether for legal or goodwill reasons - they need to address at least these cases. However, for anybody who is contemplating legal action (including arbitration) it might be worth understanding the implications of this offer and the order of operations. Namely, if you cancel (which seems a prerequisite for this process) that might impact your ability to pursue any claims from the contract and instead rely on this promise from Tesla to review your receipts and decide they are acceptable. As a customer, I would ideally want to look at this as more of a settlement - essentially saying "I am willing to cancel the contract, but only after you agree to pay me $X, and here is documentation for $X."

I also wonder from Tesla's standpoint if they will seek to reinstate the original contract in cases where the amounts Tesla would reimburse approach or exceed the differences in the contract amounts.

In the specific case of your A/C, if you have already decided you are just going to cancel and move on, I suppose it doesn't hurt to send in the receipts. But, I would guess Tesla would say this is not reimbursable as you still get the benefit of a new, efficient A/C. Perhaps the best you could hope for would be for them to reimburse a part representing the lost value of the old A/C that might have still been serviceable for a number of year.