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Why is Tesla Solar so Inexpensive Compared to Others?

Discussion in 'Tesla Energy' started by IamMark, Jun 26, 2020.

  1. jerry33

    jerry33 (S85-3/2/13 traded in) X LR: F2611##-3/27/20

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    This is the same logic as "Tesla loses money on every car". We've heard that logic for years, but Tesla doesn't operate that way.
     
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  2. willow_hiller

    willow_hiller Active Member

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    When was your system installed? I'm hopeful that Tesla has improved in the intervening years.

    I got an itemized bill for my solar quote:
    • 12.24 kW DC Solar Panels $6,580
    • Inverter(s) & Balance of System $3,290
    • Mounting Hardware $1,175
    • Installation, Permitting, and Other Fees $12,455
    So the majority of the cost is labor and permitting. I'm betting they've been able to reduce costs by negotiating bulk rates on the components.
     
    • Helpful x 1
  3. pdx_m3s

    pdx_m3s Active Member

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    Have you bothered to read Tesla's financial statements? The Tesla Energy segment is currently break-even for Tesla, before operating expenses. This is not necessarily a bad thing, it just means they need to keep scaling to reach profitability. As a Tesla investor, I think it's the right approach. Tesla plays the long-game.
     
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  4. Zorg

    Zorg Active Member

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    Wow, less than $1 per watt for materials. Impressive.
     
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  5. willow_hiller

    willow_hiller Active Member

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    At a retail rate, I'm finding the same panels for about $240 per panel.

    36 panels in my quote means I could buy them for $8,640. So Tesla's cost for the panels are 24% cheaper than the retail, non-bulk rate. That sounds pretty reasonable to me.
     
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  6. Zaxxon

    Zaxxon Supporting Member

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    My first contract with Xcel reads similarly--20-year contract, 10 years of REC payments. But I have no mention at all of RECs in my 2nd system's documentation either with Tesla or Xcel, as far as I can find.
     
    • Informative x 1
  7. Az_Rael

    Az_Rael Supporting Member

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    March 2018 install, May 2018 PTO.

    I do hope they have improved, as I will benefit from improved customer service as well since I have their 20 year warranty and I doubt my two Delta inverters will last that long.
     
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  8. Silicon Desert

    Silicon Desert Active Member

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    Hmmm,, while I like your comment and it would be nice to understand why people disagree, I don't take those disagree tags seriously at all. A lot of people seem to get upset and go looking at the person's info, etc. If I disagree with a post, then it is typically because my experience was different and not necessarily because I think their information is wrong, etc. Frankly, I wish the forum would just remove that tag as it doesn't do any good and just gets some people upset.
     
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  9. sleevemedia

    sleevemedia Member

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    Did you specifically request SolarEdge or state a preference at any point?

    Do optimizers or multiple string inverters add to the packaged prices?

    Do they only spec optimizers for shaded panels? And use multiple inverters if you need to split the install?
     
  10. pdx_m3s

    pdx_m3s Active Member

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    Only thing that will change price is number of panels. Doesn't hurt to ask about optimizers. I think they come standard if there's shading or strings that have different orientations.
     
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  11. SciFriGuy

    SciFriGuy Member

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    I know that the panel designs come in 4 sizes: S.M.L,X But in talking with the Tesla rep, I asked if it might be possible to add a panel or two to "tweak" my output. He did not say no. Said wait until Tesla site check. Has anyone been able to add additional panels?
     
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  12. ra88it

    ra88it Member

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    Yes, you were told the correct information.
     
  13. pdx_m3s

    pdx_m3s Active Member

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    #73 pdx_m3s, Jul 16, 2020
    Last edited: Jul 16, 2020
    Yes. Generally, I think they prefer that you order the larger system and they will subtract panels to fit. They will pro-rate the price for the dropped panels.

    If you check out the "Post your tesla solar layout" thread, you'll see many systems that are not 12/24/36/48.
     
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  14. SciFriGuy

    SciFriGuy Member

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    Please tell me more.
     
  15. willow_hiller

    willow_hiller Active Member

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    Check all the posts here Post Your Tesla Solar Layout

    People have had layouts of varying sizes.
     
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  16. TheTalkingMule

    TheTalkingMule Distributed Energy Enthusiast

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    4Q Sunrun(now merged with Vivint) numbers are out. If you want an answer to the original question, their sales cost is noted as $.85/Watt for 4Q20 and likely doesn't include a LOT of indirect sales cost that's baked into general costs.

    So Tesla is selling installs at $2.01/Watt and the #1 installer in the nation by far likely has a cost line >50% of that for just sales.
     
    • Informative x 2
  17. The Horsts

    The Horsts Member

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    My experience with Tesla is that they try to control their costs by "cherry-picking" the projects they will work with... No new construction, no roofs over decks (must have 3 solid walls), a standard number of panels, etc. Some of this may get adjusted as the project progresses. But in my case (a pristine new roof, but over a deck), they simply said "No", kept my $100 deposit, and canceled the order.
     
  18. Laketime

    Laketime Member

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    I did not have that experience. Maybe the components were the stock amount but the labor for my system was much more than a standard system. And according to the quote labor was the largest cost. I have 2 arrays on different roofs on different levels and the Powerwalls were placed on a different wall the originally spec'd, now approx 40' away and not a dollar uncharge. I was very happy overall...
     
  19. Southpasfan

    Southpasfan Member

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    I had a main panel upgrade needed on my 16.32 - 3 PWs. There was no question about the need for an upgrade, so I won't go into the technicals. However, Tesla did get two competitive bids from subcontractors and I doubled checked with my own electrician.

    They are definitely not using main panel upgrades as some sort of profit center.

    By all means get an explanation, but unless Tesla is making an analytical mistake you will be happy probably with price and work.
     
    • Helpful x 1
  20. Laketime

    Laketime Member

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    I think you meant to post this to the other thread regarding the $5500 panel upgrade.
     

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