Your home can be completely renewable, thanks to Tesla solar panels, Tesla batteries, and a chargeable Tesla electric vehicle. Image courtesy of Tesla, Inc.
Tesla is often synonymous with luxury renewable technology. Despite coming across as a high-end brand, Tesla solar panels are pretty affordable. Coming in at about $2.50 per watt, a Tesla solar system is cheaper than the average $3.00 per watt price tag most solar installers offer.
Not only does Tesla have low installation costs, but it also offers its own financing option. You can get a solar loan through Tesla with no additional fees and a reasonable APR, which can be hard to come by in 2023.
So, what’s the catch? From a cost perspective, going solar with Tesla seems like a no-brainer. However, the company’s poor customer service history makes us hesitant to recommend getting solar through the tech giant.
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An average-sized Tesla solar panel system will cost about $15,025 before incentives. Once you factor in the federal solar tax credit, the cost drops to $10,518.
As we said earlier, Tesla solar panels typically cost about $2.50 per watt to install. But that price may differ depending on where you’re located and if your panels are getting installed by Tesla or by one of its Certified Contractors. Expect higher prices if you’re getting installed through a contractor.
Tesla offers various solar panel system sizes depending on your electricity needs and the size of your roof. We pulled some common solar panel sizes to give you an idea of how much they might cost with Tesla:
| System size | Cost before incentives | Estimated monthly electric savings* |
|---|---|---|
| 4.05 kW | $10,125 | $60 |
| 6.01 kW | $15,025 | $106 |
|
9.72 kW |
$24,300 | $170 |
| 11.34 kW | $28,350 | $199 |
| 13.77 kW | $34,425 | $241 |
*Based on systems installed in Florida and an average electric rate of $0.15 per kWh. Actual solar savings will vary with location.
Do Tesla solar panels qualify for solar incentives?
Tesla solar panels qualify for the same incentives and rebates as other solar installations!
The biggest solar incentive is the federal solar tax credit, resulting in thousands of dollars in savings for those who qualify. Through the incentive, taxpayers can earn a tax credit equal to 30% of solar installation costs that can be applied to their federal income taxes.
There may be local incentives offered by your state government or utility company to help lower the cost of Tesla solar even further. The availability of local solar incentives varies quite a bit, but Tesla’s online estimator usually provides information about programs in the area.
Is Tesla’s solar loan any good?
Tesla offers its own financing to homeowners going solar. With a solar loan, you get to enjoy the benefits of solar even if you don’t have the upfront cash to buy the panels right away.
Tesla’s solar loan doesn’t come with additional dealer fees and an APR of around 7.5%, but the extract rate will vary depending on your credit.
Financing any project right now is hard, thanks to sky-high interest rates. Tesla offers loans with APRs of around 7.5%, which is higher than what it was even just a year ago. But it will still give you a solid solar payback period. Keep in mind that the exact rate you get will depend on your credit score.
If you compare your Tesla financing quote to other solar quotes, you may notice that the APR is higher than other solar loans. Traditional solar loans often have dealer fees tacked onto the principal to keep the APR lower. Make sure you’re looking at the principal amount, the APR, and estimated monthly payments when comparing financing quotes.
How much does the Tesla Powerwall cost?
Tesla’s Powerwall has a sleek design but comes at a price. Image courtesy of Tesla, Inc.
The Tesla Powerwall costs $13,900, including installation, when purchased through Tesla. If you’re getting your Powerwall from a local installer, the price may be higher because of local demand, availability, and labor and design costs.
That’s a lot of money, but it’s still cheaper than many solar batteries with similar specifications. Plus, the Powerwall does qualify for the federal tax credit, which reduces the cost by 30%.
Solar battery rebates and incentives are becoming more popular throughout the country, so there may be programs available in your area to help reduce the cost even further.
Are Tesla solar panels worth it?
From a financial perspective, Tesla solar panels make a lot of sense. The panels themselves are good quality, and Tesla’s low pricing is hard to resist.
But you get what you pay for. Tesla Energy is notorious for having poor customer service, greeting homeowners with radio silence if something goes wrong with their system or installation.
You may avoid the service issue by installing through a Tesla Certified installer, but then you might not get the same low pricing that makes Tesla attractive in the first place.
We recommend getting quotes from multiple installers in your area before you sign a deal with Tesla. Shopping around will give you an idea of what’s available in your area, and find a company that you think will support you over the 25-year life of the system!
Teddy Theil
Solar Industry Expert
Andy is arguably the most qualified rooftop solar expert in America. He is in a unique position, having founded a large solar company but now being independent of any particular company. He has appeared on CNBC, has been referenced in public hearings concerning the rooftop solar industry ( such as the recent CPUC NEM 3 decision) and has been referenced by many major publications such as the Wall Street Journal, Business Week and many others.