- Low prices and a price-match guarantee
- Quality equipment
- Lower profile panels
- Anecdotally, customer service can be poor
- Four set sizes limits flexibility
- Fewer equipment options
In this article:
- What do I get from Tesla solar panels?
- Are Tesla solar panels a good deal?
- How do I order?
- Is Tesla the best choice?
More and more homeowners are turning to rooftop solar panelsas a way to save money or address climate change. Butsolar panelsrepresent a huge financial investment. While there are dozens of solar panel providers and installers around the country, it's worth looking at the major players.
Although most people likely know Tesla as an electric car company, it took a major step into the solar business with its 2016 purchase of the solar company SolarCity, which was founded by cousins of Tesla CEO Elon Musk. It now installs solar panels and its unique Solar Roof in at least parts of 25 states and promises to match the prices of its competitors.
Tesla is one of the largest solar installers in the US (though no longer one of the three largest,according to Wood Mackenzie). Tesla gave ground to companies with more aggressive sales tactics, opting for an online-only sales method that feels less pushy. It backs its already low prices with a price-match guarantee.
Those guaranteed low prices, matched with quality panels, batteries and inverters means Tesla likely offers more solar power for less money than other national players. Tesla customers might lose some of that value in customer service. While customer satisfaction ratings don't exist for the still relatively new solar industry, anecdotal evidence suggests Tesla may be skimping on customer service after purchase.
Tesla is a good option for someone who wants the most solar for the least amount of money, even if it means some challenges elsewhere. While we weren't able to test a Tesla solar installation or the customer's experience, if you value customer service you're likely to have a better experience with a different provider. Note also that the US Security and Exchange Commission isinvestigating a whistleblower claimthat Tesla misled customers and regulators when fixing fire hazards in its solar panel systems. More on that below.
It's difficult to compare solar providers, since each rooftop installation is unique. It will perform differently based on everything from the orientation of your roof to nearby tree cover to local weather from one day to the next. Below, I'll give you the essential information about Tesla's solar panels and, where possible, let you know how it stacks up to the competition. I'll stick with Tesla's panels here, and write up the Solar Roof in its own article since it's so unique.
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What do I get from Tesla solar panels?
Tesla offers four sizes of solar panel installations measured in kilowatts: 4.8, 9.6, 14.4 and 19.2kW. Tesla allows you to package your solar panel purchase with a Powerwall, its well-regarded battery system that can store power for use during surge pricing, outages or after the sun sets.
As you might expect, Tesla boasts about its panels' sleek, low-profile design. To my eye, Tesla's installations are indeed less obtrusive than others. If that's important to you, Tesla has an advantage here.
Unless you're really particular about who manufactures your panels, what's really important is how long they'll last and how well they'll work. Tesla's warranty says your panels are guaranteed to work at 85% capacity after 25 years or it will replace them. That's roughly in line with other major companies, though stronger than some.
Tesla's solar panels have maximum efficiency ratings that range from 19.3% to 20.6%, which compare favorably with other panels (though slightly higher-efficiency panels are available).
Tesla's first foray into solar power was not with panels, but with storage. Its Powerwall battery is still one of the top choices in the industry, to the point that other major solar companies offer the Powerwall with their installations.
Powerwall can hold 14 kilowatt-hours of energy. Tesla says it has the ability to power most appliances, though full use of larger 240-volt appliances like air conditioners and clothes dryers may require more batteries. How long 14 kilowatt-hours lasts depends on how much energy you use, but if you avoid using energy-intensive appliances like washers, dryers or air conditioners, it should last you a couple of days at least. (Keep in mind your solar panels will provide power during the day and possibly recharge your Powerwall, weather permitting.) Powerwall can provide 5 kilowatts of energy continuously or 7 kilowatts for a short peak.
Powerwall's warranty guarantees that the battery will hold at least 70% of its rated capacity after 10 years (or after you've cycled 37.8 megawatt hours through it).
You can install Powerwall batteries indoors and outside of your home. They're roughly 6 inches deep, 2 and a half feet wide and almost 4 feet tall, so they shouldn't be difficult to tuck away somewhere.
The final bit of hardware is the Tesla solar inverter, which converts the direct current electricity your panels generate into alternating current that your house can use. A key metric here is efficiency. Tesla's solar inverter operates at 97.5% or 98% efficiency, according to the company. That puts it near the top end of what's typical. It comes with a 12.5-year warranty.
When everything is up and running, you can monitor it all from the slick-looking app Tesla offers its users. Via the app you can monitor your energy production and usage. If you have a Powerwall, you can also customize how it operates. You can set how much charge you'd like your Powerwall to reserve for outages, boost its reserve when a storm is approaching, and adjust when you draw energy from your Powerwall based on time of day. The app has a 4-star rating on Google Play and a 3.8 in the App Store.
Are Tesla solar panels a good deal?
Each of Tesla's four offerings compare favorably to national averages for value measured in dollars per watt. According to the consulting firm Wood Mackenzie, the average cost of residential solar in the United States in 2021 was $3.28 per watt.
Tesla's online estimates usually come in well below that amount, even including one Powerwall (or two with the 19.2 kilowatt option). With the suggested storage options and the federal tax credit (30% of the cost if you install through 2031), Tesla's estimates range from $3.18 per watt for the smallest option down to $2.18 per watt for the largest. If you remove the suggested Powerwall batteries, the estimates come to $1.49 per watt for each size.
These prices are well-below the information available for other national providers, though they may not be the final cost. Your $100 refundable deposit only starts the process. You may need to upgrade your electrical main panel or pay extra for hiding the conduit from your solar panels. Tesla has also suddenly changed solar panel prices in the recent past.
Tesla will match any installer who quotes you a lower price. If that quote comes within 14 days and is for an array of the same size or larger, Tesla will match the price on a dollar-per-watt basis. All you need to do is to email them the quote and your Tesla reservation number.
Tesla offers fewer choices than some other installers. While others might offer Tesla's Powerwall and another brand or size of battery, Tesla only offers Powerwall. Because your energy needs will vary from others, you might find a better fit for your needs with another company.
In early December, Reuters reportedthe SEC was investigating a whistleblower's claims that Tesla failed to notify customers of an issue that may have caused some solar arrays installed before 2018 to catch fire. The company launched Project Titan in 2018 to fix the issues, but was not upfront about the reason and did not offer to shut down solar panels to decrease the risks. Several of its solar customers have sued Tesla over fires. The SEC said that the ongoing investigation into Tesla does not mean it has found that Tesla broke the law, Reuters reported. Tesla does not operate a press office to handle requests for comment.
Read more:Your Solar Panels Can Make You Money. Find Out When and How
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Does Tesla operate in my state? How do I order?
The only surefire way to know if Tesla's solar panels are available in your area is plug your address into its website and check. I found services in parts of 25 states. That means it's available in a few more states than some of the other major solar companies, like Trinity and Sunrun, though SunPower serves more. (Tesla's service areas for solar panels and solar roofs are not identical. It's possible that solar roofs are available through a certified installer where panels are not.)
The ordering process is fairly straightforward: Enter your address. Enter your average monthly electricity cost. Tesla will then spit out a suggested solar array and number of Powerwall batteries. It also provides an estimated cost and a visual mockup (though not of your house). You can add or remove solar panels and Powerwalls from your order and see how it will affect your estimated electricity usage and storage capabilities.
When you're satisfied with your setup, you can place your order with a refundable deposit of $100.
From here, you'll need to submit your utility bill and take a few pictures of your roof. Tesla uses that information and satellite imagery to design your system.
While it may seem strange that Tesla doesn't send someone out to view your roof before designing your solar system, the idea here is to reduce costs. (While the price-per-watt cost of residential solar is falling, the price of panels, inverters and other hardware is falling faster than the soft costs like labor and site visits.)
At this point, you'll sign a contract and installation moves ahead largely as it would with any installer. Permits are pulled. Tesla sets an install date (which can be rescheduled). A local team puts panels on your roof.
Your installation may be subcontracted to a certified installer. Tesla has in-house installation teams, but more and more it's relying on third-party installers to expand the reach of its tech. In particular, it certifies installers for the Powerwall and its other solar option, Solar Roof.
Although Tesla did not respond to requests for confirmation about its selection process for install teams, this is information you should be provided before you sign your contract, if it's important to you.
You have a couple of backstops, too. You can cancel your contract within up to three days after you sign. Also, your final payment isn't due until the newly installed system passes an inspection by your local authority. You also have the option to return your system for up to seven days after it's fully functional. Some work won't be refunded or returned (like a Powerwall installation) and Tesla won't make cosmetic repairs to your roof after it removes panels. What is or isn't returnable and refundable will be detailed in your Energy Products Order Agreement, which you should read carefully before signing.
Is Tesla the best choice?
As with any major purchase, you should get multiple quotes from multiple companies. Make sure they answer all your questions and provide the information you need. While Tesla doesn't have a press office, its customer service representatives were easy to get in touch with and seemed knowledgeable. Still, it shouldn't be your only call.
If you're looking for the lowest prices and the backing of a national brand, Tesla is the way to go. Tesla's price match means it will always be competitive in terms of cost. Likewise, the estimates it provides online (which are only estimates) come in well below the national average. If the look of your panels is really important, Tesla's do sit closer to the roof and look sharp. Tesla also offers more information up front about its warranty than some of the other players. Still, make sure you can view it in detail before committing.
The Powerwall is widely considered an industry leader in batteries. It sets the Tesla's equipment apart, but it's also available from some other installers.
There is very little reliable customer service and satisfaction information for the solar industry. Tesla Solar doesn't have a score with the Better Business Bureau, but anecdotally Tesla's customer service for solar is bad enough in some cases to make people regret their purchase. Its customer service call center was responsive and it's not hard to find customer service complaints for any of the major solar installers, but the complaints about Tesla seem louder and more numerous.
It's also important to note that I researched this as deeply as was practical and tried to provide the clearest answers, but I didn't go through the purchasing process, interact with customer service as a buyer or base my assessment of Tesla's performance on any first-hand experience. This category is a hard one to review in the traditional sense, so if possible, you'll want to make sure to get multiple estimates from the different providers in your area before you make a purchase decision.
Correction, Jan. 31, 2023: An earlier version of this article misstated the Better Business Bureau's grading process. Any company can receive a grade from the Bureau, regardless of whether it haspaid to go through the accreditation process.
More on solar energy
- How to Prep Solar Panels for Winter Weather
- How Many Solar Panels Do You Need to Power Your House?
- Want to Know How Long Your Solar Panels Will Last? Find Out Here
- I Bought a Half-kilowatt of Solar Energy for $9 in Under 10 Minutes
- DIY Solar Panel Pros and Cons: Should You Install Solar Panels Yourself?
Is Tesla solar cheaper than others? ›
Comparing Tesla Solar Roof cost with other options
A Tesla Solar Roof installation is a premium option and will cost as much as 75 percent above the price of a typical solar panel system. Here's how it ranks in terms of production, efficiency, and cost compared to traditional solar panels and other shingle options.
Tesla's solar options are significantly more expensive than other solar companies and renewable energy alternatives on the market, and the company has had a record of changing quoted prices for the Solar Roof fairly regularly.Is Tesla solar panel cheaper? ›
For an average-size home, you can probably expect to pay $15,000 – $20,000 for a solar unit. Tesla solar panels are actually a little cheaper, averaging about $2,000 per kwh of solar capacity. Tesla solar has four different system sizes, and Tesla's costs range from $8,200 – $32,800.Is Tesla the best option for solar? ›
Overall, Tesla offers industry-standard solar systems in terms of efficiency and cost. The Tesla solar shingles and roof have a sleek approach to design, and the company provides a solid guarantee for its work. In addition, the Tesla Powerwall is one of the most reputable solar batteries on the market.Why is my Tesla solar bill so high? ›
You are billed based on the amount of energy your solar system produces each month. Your utility bill is typically higher in summer with a greater number of daylight hours, and more direct sunlight. Your invoiced amount is based on how much energy the system produced in the previous calendar month.Who is the most reputable solar panel company? ›
- The Best Solar Panel Installation Companies of 2023.
- Sunpro Solar.
- Blue Raven Solar.
- Momentum Solar.
- Palmetto Solar.
- Trinity Solar.
Key points. Solar panels typically pay for themselves within nine to 12 years. Solar panels reduce or eliminate the cost of electric utility bills. Utilities may pay solar panel users through a process called net metering.How long does it take for Tesla solar panels to pay off? ›
The most common estimate of the average payback period for solar panels is six to ten years. This is a pretty wide range because there are many factors that will influence the number of years it can take to pay off your panels and the monthly savings you can expect.Does a Tesla solar roof pay for itself? ›
Offsetting Electric Bills
A Tesla Solar Roof will soon pay for itself by offsetting your electric bill. Once the roof has paid for itself, you'll be saving money each month. A home with a roof that saves you money each month is definitely valuable!
They're a strong, durable option for anyone who wants an energy-efficient roof. Don't turn them down out of concern for your roofing contractor's ability to make repairs. Roofing contractors can and do walk on Tesla Solar Roofs – when wearing the appropriate safety harnesses. They won't damage the roof in the process.
What is the interest rate on Tesla solar panels? ›
Along with bringing the 20-year option back, the interest rates are also lower than they were previously. Based on the tweet above by Tesla Owners Silicon Valley Club in June 2021, the interest rate in California used to be 5.99%. According to the online configurator, the interest in the state is now 3.99%.What is the average price for Tesla solar? ›
A Tesla solar system (including equipment and installation) can vary in cost from $11,840 for 8.2 kW of standard solar panels to $22,200 for 16.3 kW (both after tax incentives). A Tesla Solar Roof will have a higher price tag, typically in the ballpark of $30,000 to $90,000.Does Tesla solar work during power outage? ›
If you have solar, your Powerwall can recharge from your solar system to run your home from solar and Powerwall even when the grid is down. A traditional solar system without a Powerwall does not function during a grid outage.Which solar panels are better LG or Tesla? ›
The LG Chem has a round trip efficiency of 96% whereas the Tesla Powerwall 2 claims 90% round trip efficiency. Quickly to summarise what round trip efficiency means, when your energy is produced by your panels it gets sent to your solar battery and stored.What brand of solar panels does Tesla use? ›
Tesla offers 425-watt, all-black, seamless, anodized aluminum, monocrystalline solar panels from Q CELLS by Hanwha. The company's panels come in standardized sets of small (12 panels), medium (24 panels), large (36 panels), and extra-large (48 panels).Which solar is the cheapest? ›
- Hanwha Q Cells.
- Trina Solar.
- Canadian Solar.
How much does Tesla solar cost? A Tesla solar system (including equipment and installation) can vary in cost from $11,840 for 8.2 kW of standard solar panels to $22,200 for 16.3 kW (both after tax incentives). A Tesla Solar Roof will have a higher price tag, typically in the ballpark of $30,000 to $90,000.What is the cheapest way to get solar? ›
In general, a purchased solar system can be installed at a lower total cost than system installed using a solar loan, lease, or power purchase agreement (PPA). If you prefer to buy your solar energy system, solar loans can lower the up-front costs of the system.