Tesla launches a new option to lease its solar panels in an attempt to revive its fallen home solar business. The company is offering a new rental plan in six states – Arizona, California, Connecticut, Massachusetts, New Jersey and New Mexico – and it will cost just $ 50 a month (plus tax), with no pre-installation costs or a long-term contract. The monthly payment also includes maintenance, maintenance and any "other necessary hardware", though tenants must pass any tax breaks or discounts to Tesla.
The new rental option only started a few months after Tesla cut prices on board its solar panels. Taken together, the two solutions show how Tesla has been trying to rejuvenate its home solar panel business, which has been shrinking over the three years since the company became the market leader of SolarCity at the time. In July, Tesla announced it had fewer solar panels in the second quarter of 201
The terrain of Tesla sales to choose the rental option is that it will be cheaper, faster and less burdensome for homeowners to get solar panels on their roof at first. The company promises a one-click experience that is far simpler than the usual process that Tesla says typically involves "lengthy consultations and piles of paperwork."
In any eligible state except California, Tesla will charge $ 50 per month for a "Small" 3.8kW solar panel system that generates an average of 10 to 14kWh of energy per day, $ 100 per month for the "average" "A 7.6kW system that generates 19 to 28kWh, or $ 150 a month for a" big "11.4kW system, produces 29 to 41kWh per day.
Monthly percentages are higher in California; the rents will cost $ 65, $ 130 and $ 195 per month for small, medium and large systems, respectively. It costs about $ 10,000, $ 20,000 and $ 30,000 to buy small, medium and large systems, respectively, from Tesla directly (installation included), depending on the state. (Tesla's Powerwall base battery still has to be purchased separately and cannot be added to solar panel rentals, the company says.)
Although the contract is not long-term, there are some limitations. Customers must own their home to install the panels. They can cancel the rental at any time, though they will be charged $ 1500, all of which Tesla says will go toward the cost of uninstalling the panels. (Tesla does not profit from this, the company writes.) In addition, Tesla will impose a $ 1,500 fee if the homeowner decides to downgrade from one of the larger systems to a smaller one. Owners can purchase the system as soon as five years after it is started and operated under the agreement.
Monthly rental rates can also be increased at any time, according to the language of the subscription agreement. Tenants will have up to 30 days to accept the change or cancel their subscription.
As with solar panel leasing plans (or more complex "power purchase agreements"), Tesla's solar panel tenants must submit "all tax credits, incentives, discounts and certificates" to the company. For example, in Arizona, that means Tesla can make between $ 4 021 and $ 10 063 for installation in combined federal and state tax incentives.
The federal solar panel tax credit currently covers 30 percent of total costs, though this incentive begins a multi-year phase beginning January 1, 2020. But even without the federal tax credit, customers who have the money to buy Tesla's solar power panel systems will directly consume less over the life of the panels. Depending on where they live and which system they buy, Tesla solar panel tenants will end up spending more than the purchase price after about 12 to 18 years paying the monthly subscription fee (if not changed).
SolarCity used to offer a leasing plan for solar panels, which made it cheaper for homeowners to roll with home solar power. However, this was one of the characteristics that Tesla discontinued after the acquisition of the company and overall sales of solar panels have steadily declined over the years. The company also closed installation centers and closed a deal with Home Depot in 2018, which helped market and sell its solar panels.
Tesla has spent the last few years highlighting the more futuristic (and more expensive) design of the Solar Roof, which involves replacing the entire roof with light-sensitive shingles. But the company is still in the design and testing phase and has a minimal amount of sun roofs. In the meantime, Tesla has set up a large commercial energy production and storage business that has helped balance the revenue it lost after declining sales of residential solar panels.