Tesla recently announced that it had launched a 20-year Solar Roof loan option that allows customers to have lower monthly payments. The update enables Tesla to offer its flagship residential solar product at a price point that’s more affordable than before.
Tesla’s order page for the Solar Roof requires prospective customers to provide their home address, as well as their average monthly electric bill. Customers must also provide information about their home’s square footage and its number of stories. Similar to Tesla’s previous Solar Roof pricing models, an installation’s overall cost would depend on the size and location of a home.
For a sample 3,000 square foot, two-story house in Milpitas, California, with an average electric bill of $200 per month, Tesla recommends an 8.18 kW Solar Roof with one Powerwall battery, which costs $61,400 before the federal tax credit. After incentives are applied, Tesla estimates that the system would cost $45,100 if paid in cash.
A look at a loan option for such a system shows Tesla’s focus on making the Solar Roof more affordable. Under the company’s 20-year loan program with a 10% downpayment, Tesla would be charging customers just $335 per month. The same system under a 10-year loan costs $533 per month or about 38% more. Considering that the Solar Roof is a long-term investment, the monthly savings from Tesla’s new 20-year loan system may prove compelling for new customers.
Tesla’s solar business does not command the spotlight as frequently as the company’s electric vehicle division, but it is growing steadily. Tesla noted in its third-quarter Update Letter that solar deployments were 83 MW in Q3 2021, increasing by 46% year-over-year. Solar Roof deployments more than doubled year-over-year as well. When fully ramped, CEO Elon Musk has noted that he expects Tesla Energy to be just as big, if not bigger, than the company’s electric car business.