Tesla has significantly increased the price of its solar roof, angering some customers who responded by canceling their orders. The news was first reported this weekend by Electrek.
The price hikes come as Tesla announces growth in both its revenue and solar business. In the fourth quarter of 2020, the company installed 86 megawatts (MW) of solar energy, a 59% increase from the previous year. Over the past year, Tesla installed 205 MW of solar energy, marking an 18% increase compared to 2019.
Tesla offers two solar products: solar panels, which are installed on an existing roof, and a solar roof, which replaces traditional shingles with ones that absorb sunlight and convert it into energy.
Recently, the price of Tesla’s solar roof has increased dramatically. One customer told The Verge that he had signed a contract in February to have a solar roof installed for $35,000, with an additional $30,000 for batteries.
HE RECEIVED AN EMAIL INFORMING HIM THAT A NEW CONTRACT WITH HIGHER COSTS WOULD BE SENT TO HIM.
Later, he received an email from Tesla with a new contract featuring higher prices. He was now expected to pay $75,000 for the solar roof—a 114% increase—and $35,000 for the batteries.
He was told that he could cancel his order via Tesla’s online portal if he chose not to accept the new terms, with the implicit threat that his installation project would be delayed if he didn’t immediately agree to the new offer.
Here is the email he received from Tesla:
We have increased the price of the Solar Roof and have added costs based on the complexity of each roof.
You will receive an email within the next 1–2 days when your new agreement is ready, and your acceptance is required to proceed with your project. If you are no longer interested in Solar Roof services, you can cancel your order by logging into your Tesla account, and your deposit will be automatically refunded.
We prioritize customers based on the order in which they accept the new contract terms.
However, he soon discovered that there was no option to cancel the order through the customer portal, forcing him to contact Tesla’s customer service directly to complete the cancellation. The customer told The Verge that he was frustrated by the price increase, as it was difficult to find a comparable alternative to Tesla’s offering. His emails to Tesla representatives went unanswered for weeks, until a friend working at Tesla helped him connect with the right person.
“IT’S HARD TO HAVE TO GIVE UP THE PROJECT.”
“It’s tough to move on, but the customer service and sales process was already frustrating even before this change,” he said.
Some customers told Electrek that they had spent thousands of dollars on loans and site preparations—including tree removal—in anticipation of their solar roof installation, only to find out that they now owed tens of thousands of dollars more to Tesla.
This marks a sharp shift for Tesla compared to three years ago, when the company was lowering solar roof prices to reverse the decline of its home energy business. It also comes years after Tesla unveiled a glass version of its solar panels—the third iteration of its design—which was supposed to be cheaper and faster to install.
In its latest earnings report, Tesla claimed it was speeding up installation rates:
“This growth is the result of significant improvements in our solar retrofit strategy, including product simplification, cost reductions, and peak pricing adjustments,” the company said. “We have also made great progress in expanding our solar roof deployments, as we have grown our team while simultaneously improving installation efficiency.”
A Tesla spokesperson did not respond when contacted for an explanation of these unexpected cost increases, which is unsurprising, given that Tesla eliminated its public relations department and has not responded to press inquiries for over a year.
Even some Tesla shareholders sued Elon Musk over this deal, alleging that he overvalued SolarCity and failed to properly recuse himself from the acquisition, leading to a court dispute. Tesla’s board of directors settled the case last year, leaving Musk as the sole defendant in the lawsuit.
For more information or any inquiries, please contact us directly. Our affordable, reliable, turnkey solar energy solutions will fully satisfy you. Give us a chance to impress you and share our solar expertise with you!
