Why is Tesla Solar so Inexpensive Compared to Others?

[jerry33]

It would not surprise me if Tesla's solar panel division is operating at a loss to re-gain market share. Having said that, they have an extremely streamlined back-end process and only do certain types of installs (the easy ones). Additionally they likely have negotiated favorable volume purchase contracts for panels and inverters compared to what local installers can get.

It would not surprise me if Tesla released their own inverter in the near-future. They are all about vertical integration and doing things in-house.

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.

 

[willow_hiller]

I rate my Tesla Solar install as a 1 star. They installed the wrong panels on my roof for one, which was awesome and required a lot of rework. Then they didn’t connect the panels correctly the 2nd time and it took 4 months of arguing with their customer service that something was wrong before they would even consider sending someone out for a repair. So many issues with the install and after service, I really wish I hadn’t gone with them.

I do not recommend Tesla solar to anyone, ugh.

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

Price is a bit of a head scratcher. They're basically selling for slightly under $2 a Watt. Isn't the cost of materials pretty close to that already (inverter/panels/etc.)? Labor costs are not insignificant: designing, coordinating with utilities and city permit/inspection, and installing. Margins have to be razor thin...

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.

 

[pdx_m3s]

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.

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.

 

[Zorg]

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.

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

 

[willow_hiller]

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

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.

 

[Zaxxon]

Maybe they are planning on reaping the rewards in the future? In our contract, it said we only get the RECs for the first 10 years. After that, they go to Tesla. In the future, Tesla will be raking in millions of dollars in RECs every month.

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.

 

[Az_Rael]

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

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.

 

[Silicon Desert]

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.

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.

 

[sleevemedia]

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.

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?

 

[pdx_m3s]

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?

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.

 

[SciFriGuy]

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?

 

[ra88it]

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?

Yes, you were told the correct information.

 

[pdx_m3s]

Yes, you were told the correct information.

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.

 

[SciFriGuy]

Yes, you were told the correct information.

Please tell me more.

 

[willow_hiller]

Please tell me more.

Check all the posts here Post Your Tesla Solar Layout

People have had layouts of varying sizes.

 

[TheTalkingMule]

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.

 

[The Horsts]

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.

 

[Laketime]

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.

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...

 

[Southpasfan]

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.

 

[Laketime]

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.

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