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How Tesla’s solar panels could be even cheaper than the announced $1.49 per watt — after incentives

While this is a huge step so for solar, some say its actually cheaper. But how?

By Editorial Team August 17, 20202

A worker secures a solar panel to a rooftop during a SolarCity residential installation (Bloomberg)

KEY POINTS

During Tesla's Q2 earnings call, Elon Musk said the company’s solar panels are now 30% cheaper than the U.S. average.

This means, after considering the Federal tax credit, the costs become $1.49 per watt.

While this is a huge step for solar, some say its actually cheaper. But how?

During Tesla’s Q2 earnings call, Elon Musk dropped the little bombshell; that Tesla’s solar panels now cost $1.49 per watt after incentives. This is a huge step forward for the price of solar power — but Matt Ferrell says he found that it can be even lower.

Editorial Team

The Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with data and insights to deliver useful news updates. We are experts with the mission to inform, educate and inspire the industry. We are passionately curious, enthusiastic, and motivated to positively impact the world. Send us a tip via hello @ pvbuzz [dot] com.

2 Comments

[email protected] says:

17 August, 2020 at 5:03 pm

Tesla’s solar panels now at $1.49 per watt after incentives is not a huge step forward for ordinary consumers and taxpayers, but is certainly a huge step forward for Tesla’s sales chain partners inflated profitability.
$1.49 per watt is not a contemporaneous global price for tier 1 solar PV panels, $0.50 is closer to commercial reality.
The levelised cost of electricity (LCOE) generated from $1.49 per watt PV systems is unsustainable by any objective analysis, and can only lead to stranded PV assets without a market to sell grossly overpriced PV generated electricity.

Lawrence Coomber
1. [email protected] says:
  
  21 January, 2021 at 9:53 am
  
  Mr Coomber,
  What you may not be aware of is that the $1.49/watt after incentives, is the installed price. At a time when their competition is charging from $2.67/watt to $3.50+/watt, it is clear to me that their costs are significantly lower.
  
  BTW, I have no affiliation with Tesla other than being one who has greatly investigated solar and solar installation costs.