Tesla cuts system prices by an average of $3,000 - $5,000

[3laine]

According to several sources, Tesla is lowering their system prices by an average of $3,000 - $5,000. Some sources say "10-15%". Supposedly, this is due to better vertical integration. The Tesla quote is below:

As a result of the vertical integration of our solar products into Tesla’s retail stores and the increased efficiencies we’ve realized over the past year by closing more expensive sales channels like door-to-door sales, we are now able to reduce prices for our solar power systems. As a result of this pricing change, our average customer will see a savings of between $3,000 and $5,000. This change, along with our push to continue shortening the time between sale to installation, will accelerate the adoption of solar and the world’s transition to sustainable energy​

I wonder if the new pricing is that much cheaper across the board, meaning a big discount off of pre and post negotiation pricing, or if it just means a new strategy of coming in with more competitive initial pricing?

I've seen anecdotal evidence that many people gave up on Tesla right from the start because their first offer was so outrageously high, that they didn't even bother negotiating.

So, will the new pricing be $3,000-$5,000 lower than the original offer? Or $3,000-$5,000 less than the final, negotiated offer or the now-retired "Best Value Guarantee" offer?

I guess we'll find out when we see new numbers for what people are paying for Tesla systems over the next few months.

Hopefully it means even lower final $/W pricing and not just more competitive initial offers with a similar bottom-dollar.

 

[gurtburns]

Single data point here. I got a quote back in august when I got my 3. I heard the news and got requoted yesterday. No change in price. 6.6kw @ $21763 for a price of $3.29/w installed before the rebate. This is in PA

 

[MorrisonHiker]

Single data point here. I got a quote back in august when I got my 3. I heard the news and got requoted yesterday. No change in price. 6.6kw @ $21763 for a price of $3.29/w installed before the rebate. This is in PA

That's nearly the same price per Watt that we paid for our system in July.

 

[SpudLime]

several sources?

 

[3laine]

several sources?

I just mean Electrek, CNBC, InsideEVs, etc.

The weird thing is that some say "10-15%" and some say "$3,000-$4,000" even though Tesla's quote says "$3,000-$5,000" and nothing about percentages.

 

[electracity]

"As a result of the vertical integration of our solar products into Tesla’s retail stores and the increased efficiencies we’ve realized over the past year by closing more expensive sales channels like door-to-door sales, we are now able to reduce prices for our solar power systems. As a result of this pricing change, our average customer will see a savings of between $3,000 and $5,000. This change, along with our push to continue shortening the time between sale to installation, will accelerate the adoption of solar and the world’s transition to sustainable energy"

Right there is a load of b.s. from Tesla. When you are selling a near commodity you charge what the market is willing to pay.

Single data point here. I got a quote back in august when I got my 3. I heard the news and got requoted yesterday. No change in price. 6.6kw @ $21763 for a price of $3.29/w installed before the rebate. This is in PA

Not a bad price for a good install. I'm sure you can find lower, but Tesla will be around in three years for warranty repairs.

 

[gurtburns]

Right there is a load of b.s. from Tesla. When you are selling a near commodity you charge what the market is willing to pay.



Not a bad price for a good install. I'm sure you can find lower, but Tesla will be around in three years for warranty repairs.

Yeah. Its not bad but its not great either. I just got a quote from the other installer in the area that rivals Tesla (based on public permit data) and has great reviews that is much lower at $2.48/w before incentives. (355w Seraphim Panels with individual DC optimizers, SolarEdge Inverters, etc)

 

[Shygar]

Tesla will attempt to match other offers from local solar guys. So if you get a lower one, you should show that to Tesla and see if they can match it.

 

[EinSV]

This is great news. By cutting door-to-door sales, Home Depot and similar sales methods and selling from existing Tesla stores and over the internet instead Tesla can save a ton of money and pass the savings on to customers. One estimate is that it cost $4500 per customer for door-to-door sales and $7000 per customer for sales through Home Depot(!). Tesla Slashes Its Residential Solar Pricing by $3,000 to $5,000

 

[electracity]

Yeah. Its not bad but its not great either. I just got a quote from the other installer in the area that rivals Tesla (based on public permit data) and has great reviews that is much lower at $2.48/w before incentives. (355w Seraphim Panels with individual DC optimizers, SolarEdge Inverters, etc)

Interesting. I didn't know that systems with optimizes went that low.

Personally I would take the lower price. In the worse case the difference pays for a couple of significant out of pocket repairs. Plus, considering time value of money, savings up front are always better.

Corporate employees of multinational corporations simply can not profitably do home improvement type projects. Tesla has laborers with good health insurance and vacation days. Their competition in my area has Mexican and Romain nationals doing good quality work for cash.

 

[wbhokie]

Yeah I believe my initial Tesla estimate was about $3.25/w a month ago but in the end after their "Best Value Guarantee" it ended up being around $2.89/w I believe. A bit more than 10% cheaper than their initial quote just because I got another estimate. This also allowed me to get higher wattage panels on more optimal sections of my roof in the same quote since the other company quoted me on that design. Would be nice if they just started the process with the lower prices! The price matching was nice since I got the additional warranty with the self-referral too.

 

[gurtburns]

Interesting. I didn't know that systems with optimizes went that low.

Personally I would take the lower price. In the worse case the difference pays for a couple of significant out of pocket repairs. Plus, considering time value of money, savings up front are always better.

Corporate employees of multinational corporations simply can not profitably do home improvement type projects. Tesla has laborers with good health insurance and vacation days. Their competition in my area has Mexican and Romain nationals doing good quality work for cash.

I was really surprised as well. Im working with the Tesla rep to redo the quote to use the 325 panels and add some northern facing panels to see what a full 100% offset would be. Once Im happy with a plan Ill try to see how far I can negotiate down.

 

[Babaron]

Initial Tesla quote $3.25/w last July. Price matched Down to $2.60/w in Aug. No optimizer (not needed for my setup) and before incentive. Finished install in Oct. and just turned it on yesterday. 15.12 kW in Sarasota.

 

[Nosken]

I have seen Tesla aggressively match other solar company quotes on systems.

 

[gurtburns]

Initial Tesla quote $3.25/w last July. Price matched Down to $2.60/w in Aug. No optimizer (not needed for my setup) and before incentive. Finished install in Oct. and just turned it on yesterday. 15.12 kW in Sarasota.

At what point did you negotiate? How difficult was to get them to come down?

 

[wheelerwbrian]

Initial Tesla quote $3.25/w last July. Price matched Down to $2.60/w in Aug. No optimizer (not needed for my setup) and before incentive. Finished install in Oct. and just turned it on yesterday. 15.12 kW in Sarasota.

Babaron, how did you contact Tesla for your Sarasota install? I'm asking because I'm building down in Charlotte County and looking at solar panels with a Powerwall 2 installation.

There's a vendor in Sarasota claiming to be an official Powerwall installer. Tesla Powerwall Home Battery | Brilliant Harvest

Is that who you used? Or did you go through the Tesla gallery contact to initiate the estimates.

I want to give my builder some guidance and double check his planning. Thanks.

 

[3laine]

Babaron, how did you contact Tesla for your Sarasota install? I'm asking because I'm building down in Charlotte County and looking at solar panels with a Powerwall 2 installation.

There's a vendor in Sarasota claiming to be an official Powerwall installer. Tesla Powerwall Home Battery | Brilliant Harvest

Is that who you used? Or did you go through the Tesla gallery contact to initiate the estimates.

I want to give my builder some guidance and double check his planning. Thanks.

FWIW, I had a system installed in Tampa ~6 months ago, and just worked with Tesla directly.

My guy's contact info is:

Arley Smude | Energy Advisor | Tesla Energy
5012 Joanne Kearney Blvd | Tampa, FL 33619
c 813.495.8891 | e [email protected]

Presumably he'd be able to connect you with someone in your area.

Good luck!

 

[Maximapolak]

Single data point here. I got a quote back in august when I got my 3. I heard the news and got requoted yesterday. No change in price. 6.6kw @ $21763 for a price of $3.29/w installed before the rebate. This is in PA

At 6.6 kW, what is your monthly usage? I'm also in PA just three hours east of you. Who is the lower priced installer you were quoted by?

 

[wbhokie]

I talked to my energy consultant and he said the price change would affect one of my current referrals, and he checked my quote, and that it wouldn't affect me since my price match was already lower. Still, it sounds like they will start their default pricing lower which is less hassle for buyers.

 

[3laine]

I talked to my energy consultant and he said the price change would affect one of my current referrals, and he checked my quote, and that it wouldn't affect me since my price match was already lower. Still, it sounds like they will start their default pricing lower which is less hassle for buyers.

Good to know. I figured that might be the case: that it might be more of a change to make the original quote more aggressive, but not a significant change compared to the bottom-dollar quote.