has decided to do things a bit differently lately – the company is attempting to basically recover its plunging division. How does the prominent corporation intend to do this? The answer might seem all too obvious – ! 

Tesla recently decided to cut the cost of their solar panels. Why? It is a clear move in the corporation’s attempt to recover its solar panel business which has unfortunately weakened since acquiring . Where does this leave Tesla? Behind other residential solar companies, including Sunrun and Vivint Solar Inc. 

Solar Panels Without a Long-Term Contract 

Imagine being able to switch to solar panels without having to sign into a contract long-term. Many do not like the idea of longstanding contracts, period. For some, they realize they might change their mind down the road. Or they fear a change in the future could prevent them from being able to afford their bills. Tesla’s innovative idea will allow consumers to take advantage of solar panel packages without a long-term agreement. This concept is part of a relaunch that was recently announced by Elon Musk, Chief Executive. Is there a catch? Well, sort of. A customer could be billed $1,500 in the event that they want to opt out of the solar panel system and have said solar system removed. But is it still worth it?  

You might recall, if the rental idea sounds familiar, that SolarCity offered a leasing product purchased by Tesla in 2016 for $2.6 billion. The strategy was a good move in the sense that for SolarCity, it propelled growth, but on the other hand, the company had to borrow a great deal of money in order to support the concept.  

Telsa ultimately made outright sales a priority to increase profitability. It stopped marketing door to door and canceled a partnership with Home Depot Inc.  

Tesla’s Solar Relaunch 

The solar relaunch for Tesla is coming less than 30 days after the company reported a decline for the third consecutive quarter when it comes to solar installations. The smallest quarter so far was the second quarter in which just 29 megawatts was deployed. For comparison purposes, when SolarCity was at its height, it installed more than 200 megawatts over the course of just a three month period.  

As per senior solar analyst at Wood Mackenzie Power & Renewables, , Tesla is attempting to rebound growth volumes and there is an obvious need for the company to demonstrate better financial management.  

Is the solar panel rental option a good one? Perhaps. Earlier this week, Tesla shares increased by more than 3 percent.  

What is included with the monthly payment plan for solar panels? It will cover the cost of solar installation, maintenance, and support. Avoiding upfront installation costs is certainly a perk. Six states in America, including New Jersey and Massachusetts, are offering the rental option for as little as $50 per month for small solar systems. California is offering the solar rental option as well, for $65 per month. Arizona, New Mexico, and Connecticut are on board and offering the solar rental plans also 

Yes, overall it is financially a better move to buy, however, the rental option might be worth it for some. At the very least, if you are interested in solar installation, this might be something to consider. The rentals are cheaper and faster in terms of the onset.  

Do you have solar panels on your home? Do you notice signage for solar panel systems going up in your neighborhood, or have you seen them on some of the local, new construction homes? Clean is certainly something we all need to focus on for the future, especially as changes with our planet are becoming more and more apparent. We need to do more, and solar is one route to take – with the option of renting, it could be that more people end up going solar. Time will tell! Keep following solar news to stay up to date with the most recent changes and advancements taking place.  

Sources: 

https://www.latimes.com/business/story/2019-08-19/tesla-no-contract-solar-panel-rentals-with-a-catch 

https://www.theverge.com/2019/8/19/20812060/tesla-solar-panel-rental-subscription-price-lease-elon-musk-cancellation-fee 

 

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