Those looking for relief from the high cost of electricity can now pre-order a Solar Roof from Tesla Inc (NASDAQ:TSLA). The company made the announcement yesterday, adding an online price calculator so consumers can figure out the final cost.
While Tesla Solar Roof pre-orders are starting a month later than expected, the good news is the cost for most homes will come in lower than many had expected.
The Tesla Solar Roof Appeal
Installing solar panels on house roofs has become an increasingly popular option amid rising electricity prices and a push toward green technology. Tesla’s Solar Roof solution has several key advantages to typical solutions that bolt arrays of solar panels to a roof.
Like a “traditional” solar roof, Tesla’s version converts sunlight to electricity and feeds the power generated back to the electrical grid. As a result, the consumer gets a credit on their monthly power bill. However, the Tesla version is integrated with the company’s Powerwall home battery. Thus, the roof also charges the battery, providing a backup in the case of a power outage.
Perhaps the biggest selling point is that unlike the usual bolt-on solar panels, Tesla’s Solar Roof actually replaces the homeowner’s existing roof with attractive, durable glass tiles (available in styles such as Slate and Tuscan).
The pitch? Installing a Tesla Solar Roof not only gets you solar power, but battery backup, an improved home appearance and a lifelong roof as well — no shingles to replace.
Pre-Orders Now Online, With Cost Calculator
Tesla CEO Elon Musk originally took to Twitter Inc (NYSE:TWTR) to claim his company’s solar roof would be available in April. It may have come a month late, but it is beating the expectations for cost.
Consumer Reports crunched the numbers prior to the launch. Based on the average price of a 3,000-square-foot asphalt tile roof of $20,000 and adding $2,000 per year in electricity savings over 30 years, then subtracting the cost of a Powerwall battery, the organization came up with a number needed to be competitive with installing a regular shingle roof: $24.50 per square foot.
Tesla claims a typical homeowner can expect to pay $21.85 to have a Tesla Solar Roof installed.
That’s still over $65,000 upfront for a 3,000 square foot roof — triple the initial cost of a traditional roof — but over time, the integrated solar tiles offset that investment. And unlike a traditional roof which has to be replaced every 20-30 years, TSLA guarantees its Solar Roof for “the lifetime of your house or infinity, whichever comes first.”
Of course, with solar, many variables go into calculating that final cost. There’s eligibility for tax credits, the actual cost of electricity in the home’s location and the number of Powerwalls needed for sufficient backup. There are also different Tesla Solar Roof tiles to choose from, and some may be more expensive than others. Most important is the suitability for solar panels, depending on location — no sun, no power and no electrical payback.
To simplify things, TSLA has provided an online calculator. It uses Alphabet Inc’s (NASDAQ:GOOGL) Google Project Sunroof to determine the suitability of the home for solar power and the number of solar tiles required. It also accounts for varying electrical costs, the federal Solar Investment Tax credit and the number of Powerwall batteries needed, and spits out a final cost that includes installation plus removal of the old roofing material.
Availability
Tesla is taking Tesla Solar Roof pre-orders now. Textured and Smooth tiles are available immediately, while Tuscan and Slate are coming in 2018. Installation starts in June for California, and the rollout will expand from there.
It’s only a matter of weeks before we’ll see the first homes equipped with a Tesla Solar Roof.
As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.
