Tesla announces 20-year loans for solar roof with lower monthly payments
Tesla recently announced that it has launched a 20-year solar roof loan option that allows customers to have lower monthly payments. The update allows Tesla to offer its flagship residential solar product at a more affordable price than before.
Tesla’s order page for the solar roof asks potential customers to provide their home address, as well as their average monthly electricity bill. Customers must also provide information about the square footage of their home and its number of stories. Similar to Tesla’s previous solar rooftop pricing models, the overall cost of an installation would depend on the size and location of a home.
For an example of a 3,000 square foot two-story home in Milpitas, California, with an average electric bill of $200 per month, Tesla recommends an 8.18 kW solar rooftop with a Powerwall battery, which costs $61 $400 before federal tax credit. After the incentives are applied, Tesla estimates the system would cost $45,100 if paid for in cash.
A look at a loaner option for such a system shows that Tesla is focused on making the solar roof more affordable. Under the company’s 20-year loan program with a 10% down payment, Tesla would only charge customers $335 per month. The same system on a 10-year loan costs $533 per month, or about 38% more. Considering the solar roof is a long-term investment, the monthly savings from Tesla’s new 20-year loan scheme could prove attractive to new customers.
Tesla’s solar business doesn’t take center stage as frequently as the company’s electric vehicle division, but it continues to grow. Tesla noted in its Q3 update letter that solar deployments were 83 MW in Q3 2021, up 46% year-over-year. Solar rooftop deployments also more than doubled year-over-year. When fully operational, CEO Elon Musk noted that he expects Tesla Energy to be just as big, if not bigger, than the company’s electric car business.
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