Tesla increasing solar prices as supply chain costs rise

After achieving the best prices in the solar industry, Tesla has significantly increased solar panel installation prices as supply chain costs continue to put pressure on the entire solar industry.

Last year, solar rooftop installation saw the first increase in prices since 2014. While deployments increased, the Solar Energy Industries Association said supply chain constraints drove solar prices in the US 18% higher.

Tesla recently achieved the lowest price in the industry in 2020 with several updates to its solar panel business, including a new price match policy. At the time, the company was claiming a price of only $1.96 per watt.

Prices have risen sharply over the past year, but several potential buyers have informed us of a major price hike that appears to be adopted by Tesla last week.

Pricing a system in Southern California, right now at a price of $2.31 per watt, results in:

When I priced the same system for the same location last year, I found a price of $1.98 per watt, which is in line with the rest of the industry as prices rise.

In 2021, Tesla’s solar deployment grew significantly (68%) for the first time in years; The company had deployed 345 MW last year. This number includes both solar panel installations and solar roofs, which also saw a significant increase in price last year.

Tesla had big plans to significantly accelerate solar deployment, and when it ramped up last year, the magnitude Tesla was trying to achieve has yet to materialise. CEO Elon Musk said he expects Tesla’s energy business to be as big or bigger than its automotive business.

Apart from the rise in prices, supply chain issues are also affecting the actual availability of the material. We previously reported that Tesla has begun delaying solar installations due to supply issues.

While Tesla ended its referral program for cars last year, the program remained in place for its solar roof and even increased its referral reward to $500 – indicating that the company is actively involved in Trying to secure more and more Solar customers.

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