Why is Tesla Solar so Inexpensive Compared to Others?

[IamMark]

I'm located in the SF Bay Area. I've been considering solar for a while, and over the course of the last several months, I've had a number of local solar companies out to give me estimates. Here's a summary of the quotes from 3 installers:

Company 1
System Size: 6.75 kW
Panels: (18) LG 375W - LG375Q1C-V5
Gross Price: $25,042

Company 2
System Size: 7.25 kW
Panels: (21) LG 345W - LG345N1C-V5
Gross Price: $30,262

Company 3
System Size: 7.0 kW
Panels: (20) LG 350W - LG350Q1C-A5
Gross Price: $25,729

Based on Tesla's website, their medium 8.16 kW system is only $16,000. That is anywhere between $9k - $14K less than all the estimates I've received. How is this possible? I haven't actually placed my order; are they potentially going to come back after they do their initial design with a completely different price?

 

[BrettS]

I think that there are a number of factors. Their size helps. They are a national company and they install the same panels on all their installations across the country, so I’m sure they’ve been able to negotiate a great price for those panels. They also have cookie cutter systems. You can get a system in one of four sizes that’s already pre configured with panels and inverters and everything. All they need to do is figure out how to fit the panels onto your roof.

As far as the price goes, for the most part, what you see is what you pay. It’s possible that there might be a small up charge, if, for example they need to replace your main panel or something out of the ordinary like that, but I think the vast majority of people pay that $16k for a medium sized system.

 

[pdx_m3s]

Big volume, centralized operations, and I'm willing to bet they probably aren't making much at these prices as they try to re-gain market-share.

 

[Dypkny845]

lol im currently in between tesla solar and a local solar company. Tesla beats their prices hands down. However I would like to go with my local company due to Tesla customer services reviews. So I told my local company match the price or I'm going to Tesla. Im 90% sure my local company with come within 2,000$. Right now they are double the price of Tesla. Its the "overhead" costs the local companies put on us.

 

[Need]

2 years ago when I did my solar panels, the standard price around in SoCal was $3/W. So a 7kW system would be around $21000. Since then the price has dropped. Your quotes seem high but maybe because you are in Bay area. But I have watching the news and been seeing highlights saying Tesla is setting the bar on low price solar. They kept dropping the price very few months. I think soon they will run all the small shops out of business.

 

[willow_hiller]

lol im currently in between tesla solar and a local solar company. Tesla beats their prices hands down. However I would like to go with my local company due to Tesla customer services reviews. So I told my local company match the price or I'm going to Tesla. Im 90% sure my local company with come within 2,000$. Right now they are double the price of Tesla. Its the "overhead" costs the local companies put on us.

I wouldn't be surprised if most of the customer service "reviews" are actually just short sellers brigading the review websites. I'm in the process of a new solar panel order right now, and all of the employees have been amazing.

Applied last Sunday, layout delivered Tuesday, loan application automated same day, inspection for permit was yesterday, interconnect agreement today... All electronically. I had to call Tesla a few times to correct some details on the paperwork, but got quickly connected to really helpful and knowledgeable staff each time.

 

[jmaddr]

Hmmm, those three companies didn't quote batteries, did they? Tesla's single power wall (13.5kwhr and 5kw cont.) is another $8500k and dual is $14.5k which would make the quotes comparable.

 

[pdx_m3s]

lol im currently in between tesla solar and a local solar company. Tesla beats their prices hands down. However I would like to go with my local company due to Tesla customer services reviews. So I told my local company match the price or I'm going to Tesla. Im 90% sure my local company with come within 2,000$. Right now they are double the price of Tesla. Its the "overhead" costs the local companies put on us.

Couldn't be happier with Tesla's customer service thus far with our solar order.

 

[Dypkny845]

Couldn't be happier with Tesla's customer service thus far with our solar order.

Thanks this is good for a piece of mind!!!!!

 

[kpinthebay]

I just placed an order for Tesla solar as well. Im in the SF East Bay. They just reduced their prices - reports say they're trying to regain market share and "be competitive". Their systems are pre-configured and you just pick the size you want. I believe the other companies do custom configs for each home. Also, don't forget Tesla cuts costs by going direct to consumer, where others have to pay for door-to-door sales.

I signed up for the small $10,000 system at about 4kw. Beauty is I can always add on to the system should my needs change. I put $100 down and my contract says my total balance is $10,233 (tax+install is included in final balance). I'm excited.

 

[MP3Mike]

Two main reasons as spelled out in their recent blog: The Lowest Price for Home Solar

• They no longer have a sales staff. (Kiosk at Home Depot, door to door sales, etc.)
• Simplification/standardization

Our new pricing is made possible by several simple improvements to a decades-old industry. We made ordering and installing solar easy by moving to fixed sizes that customers can order with a single click online — no more need to spend hours in consultations reviewing old utility bills. More than 80 percent of our customers move forward with the standard size recommended by our website, and the move to a digital experience helped cut our sales and marketing costs by 64 percent.

 

[willow_hiller]

Thanks for the disagree @glide

Are you a solar customer or just a troll? Looking through your post history it sounds like you had a P85D with battery degradation and now you just go around the forum trying to spread fear and doubt?

 

[BrettS]

Thanks for the disagree @glide

Are you a solar customer or just a troll? Looking through your post history it sounds like you had a P85D with battery degradation and now you just go around the forum trying to spread fear and doubt?

I had someone randomly disagree with one of my posts yesterday and I have no idea why. I mean I get that people have different opinions and I don’t expect (or want) everyone to agree with me, but if you’re gonna leave a disagree then at least take a minute to explain what you disagree with and explain your side. Seeing both sides of the story will help people make more informed decisions.

Edited to add: sorry @willow_hiller, that wasn’t directed at you. Your post just reminded me of it.

 

[glide]

Thanks for the disagree @glide

Are you a solar customer or just a troll? Looking through your post history it sounds like you had a P85D with battery degradation and now you just go around the forum trying to spread fear and doubt?

Nope. Just highlighting that Tesla, the company, and its customer service are absolute trash when something goes wrong. And I am an actual customer and Long Tesla. Just don’t live in some strange reality where I think these bad reviews are a conspiracy. They are earned.

you’re welcome.

 

[willow_hiller]

Nope. Just highlighting that Tesla, the company, and its customer service are absolute trash when something goes wrong. And I am an actual customer and Long Tesla. Just don’t live in some strange reality where I think these bad reviews are a conspiracy. They are earned.

you’re welcome.

This is the only website I've been able to find with a few hundred reviews for Tesla Solar: Tesla / SolarCity solar reviews, complaints, address & solar panels cost

Total: 412 reviews
5 star: 49
4 star: 7
3 star: 6
2 star: 23
1 star: 327

I've never had an experience with Tesla I would rate 1 star. And outside of sites like the above, it's hard to find examples as bad as some of those reviewers claim. For example, I was worried about roof penetration and leaks, and in the 1,898 threads on this forum with 35,253 comments from 2015, I only found 1-2 examples of bad leaks (and mainly for people with older shingles).

Almost every 1 star review says they could not get in contact with Tesla. I've called them 3 times over the last week and got a person on the phone in less than 5 minutes in each case. And they should be extra busy right now with the end of quarter push.

Something doesn't add up with all those negative reviews. Either Tesla has massively improved their customer service recently, or the reviews on solar rating websites are fake. Or possibly both.

 

[David.85D]

I already have solar, but have been helping my neighbor evaluate quotes from Tesla and other companies.

First, I noticed that Tesla is buying out all the SREC's, so you loose the stream of income - for my neighbors system, the discount was worth about 8 years of SREC's, everything else being equal (this isn't a bad deal, if everything else is equal - it isn't).

Second, they don't specify any particular inverter or promise to include "optimizers" that make the system more productive and avoids losses when one panel gets shaded. That bit of missing hardware is $3000 (for his system - plus a more expensive inverter).

So, Open questions to anyone that knows solar and has had one of these sytems installed - did you ask about keeping the SRECs? Did anyone ask for information on the inverter and/or DC optimizers? What were you told?

 

[BrettS]

So, Open questions to anyone that knows solar and has had one of these sytems installed - did you ask about keeping the SRECs? Did anyone ask for information on the inverter and/or DC optimizers? What were you told?

SRECs aren’t a thing in Florida, so I can’t help with that question. But my install used SolarEdge inverters and SolarEdge power optimizers. I believe that is what they typically use, but as your system is being designed you can ask about the inverter that they are intending to use for your installation.

 

[MP3Mike]

Yeah I think they choose the inverter/optimizer setup for your install based on anticipated shading. For example I think @MorrisonHiker got Delta inverters without optimizers for his initial install that wouldn't have shading but they went with SolarEdge with optimizers for an add-on install where there would be shading. (Hopefully he will correct me if I got anything of that wrong.)

 

[brucet999]

I wouldn't be surprised if most of the customer service "reviews" are actually just short sellers brigading the review websites. I'm in the process of a new solar panel order right now, and all of the employees have been amazing.

Applied last Sunday, layout delivered Tuesday, loan application automated same day, inspection for permit was yesterday, interconnect agreement today... All electronically. I had to call Tesla a few times to correct some details on the paperwork, but got quickly connected to really helpful and knowledgeable staff each time.

I'm no short seller, and I can tell you that Tesla/Solar City were the the worst of 5 companies I talked to about solar before choosing Semper Solaris. Their people who were to design my system did not seem knowledgeable, as was proven when they came back with an east-facing array in an area known for "June gloom" overcast mornings for three months of the year.

 

[brucet999]

I already have solar, but have been helping my neighbor evaluate quotes from Tesla and other companies.

First, I noticed that Tesla is buying out all the SREC's, so you loose the stream of income - for my neighbors system, the discount was worth about 8 years of SREC's, everything else being equal (this isn't a bad deal, if everything else is equal - it isn't).

Second, they don't specify any particular inverter or promise to include "optimizers" that make the system more productive and avoids losses when one panel gets shaded. That bit of missing hardware is $3000 (for his system - plus a more expensive inverter).

So, Open questions to anyone that knows solar and has had one of these sytems installed - did you ask about keeping the SRECs? Did anyone ask for information on the inverter and/or DC optimizers? What were you told?

What is SREC?