Blog Tesla Launches Commercial Solar Subscriptions

Tesla’s solar sales model received another update last week when the company launched a subscription option for commercial applications.

The company launched an online portal that offers price comparisons with or without incentives, as well as the benefits of choosing a rental option.

Subscriptions start as low as 9.9 cents per kilowatt-hour for the 240 kW solar panels. 

Tesla’s sales pitch for the subscription service:

Pay for what you generate every monthInstallation costs includedNo long term contractYour subscription can be cancelled anytimeYou can remove your system at any time for any reason. Tesla will charge you a nominal fee covering our costs to remove it, or you can find another qualified contractor to remove the system and return it to us.Support and warranty included Available in select utilities

Commercial systems can be purchased starting at $88,660 for 40kW solar panel arrays. Tesla says estimated returns of 8-12% a year from incentives would drop the price to $62,062 a year.

Tesla launched last month a rental service for its residential solar panel business for as little as $50 per month. There is no long-term contract or upfront installation cost.

See Tesla’s commercial solar portal here.

 

[tk421jag]

It looks like this is only for California right now.

When I took delivery of my Model 3, we spoke to a guy that was there for a test drive that has been off the grid for years and charges both of his Tesla's (an S and an X) purely on solar.

Boy was I jealous.

 

[DaveKman]

It looks like this is only for California right now.

When I took delivery of my Model 3, we spoke to a guy that was there for a test drive that has been off the grid for years and charges both of his Tesla's (an S and an X) purely on solar.

Boy was I jealous.

 

[DaveKman]

Did they mention the upfront costs or expected ROI?

 

[BrokerDon]

Sadly Tesla's Commercial Solar Subscription is ONLY for customers of these 2 utilities:

• Pacific Gas and Electric Company (PG&E)
• San Diego Gas & Electric (SDGE)

... NOT:

• Southern California Edison (SCE) where our two industrial buildings in HOT Corona, CA are located that definitely have the required estimated 3,400 sq. ft. solar coverage area
• Anaheim Power where our two industrial buildings in Anaheim, CA are located including one occupied by a powder coater with BIG electrical usage from their UV curing booths and air compressors.

Hopefully Tesla will add those two utilities soon since our TENANTS pay for all the electric and thus have zero motivation to pay for solar to be installed on our buildings since they're on 5-year leases... Well before their solar R.O.I. can be achieved. As building owners, we have zero motivation to pay for solar to be installed on our buildings since we can't force the tenants to buy their electric from OUR solar panels... and the utility companies require the tenants power bills to qualify for solar systems... which they're reluctant to disclose. CATCH 22

Tesla's Commercial Solar Subscription FAQs: Commercial Solar Subscription

Corona buildings (the 2 without solar panels in the lower portion of the picture):

Anaheim buildings:

 

[robstout2]

Once the panels have paid for themselves with the electricity savings the solar panels can continue to generate electricity for 25 to 40 years I have been told. If you are renting or leasing will you get the savings ?

 

[BrokerDon]

Once the panels have paid for themselves with the electricity savings the solar panels can continue to generate electricity for 25 to 40 years I have been told. If you are renting or leasing will you get the savings ?

Renters ("Lessee") could certainly could get the savings. The problem is they lease buildings because they're uncertain of their future space requirements, or in our case need to expand and the only way they could was to lease from us since our buildings are not for sale.

As Lessors we've learned that locking in a lease rate beyond 5 years is a bad gamble since in space limited SoCal lease rates historically have increased dramatically more than the cost of living or the current 3% annual rent increases in our lease agreements. Yes we'll give Options To Extend at 95% of the market rate plus ~ 3% annual increases when the leases renew, but the Lessees almost always want to leave their options open to vacate in 5 years if they outgrow our buildings or decide to buy instead.

 

[WattBeatsGas]

As a TSLA stock owner, I applaud this innovation; it seems promising for business. On the other hand, still as a TSLA stock owner, I fear this may go nowhere because of the fires reported on commercial roofs and, now, on residential roofs. Who would risk not only $$ but life and limb on a known fire hazard even if it's of low probability? Example: I want to put a solar system on my residence. I’ve asked the Tesla sales person for something to reassure me that Tesla has solved the fire problem and fixed it so that no-one need worry about it anymore. But weeks have gone by with no response. Perhaps the non-response is a response implying, “Nope, Tesla hasn’t fixed it yet.” Or maybe it’s the case that Sales has so many customers that they can’t be bothered with any prospect who slows them down.

Neither one of these possibilities warms my TSLA-stock-owning heart!

 

[nc_ev_driver]

Given Walmart’s extensive issues and Tesla’s seemingly incompetence, I wouldn’t touch this product.

 

[larmor]

Given Walmart’s extensive issues and Tesla’s seemingly incompetence, I wouldn’t touch this product.

I agree, i avoid walmart as much as possible even with my ten foot pole.