Tesla Cuts Solar Panel Prices amid Dwindling Sales

Tesla has announced that it has slashed its solar panel prices to streamline the company’s solar business that has reportedly been declining.

According to an online payment tool the company provides, a 4kW panel array now costs $7,980. A client will pay up to 1.99 per watt inclusive of the installation fee.

The New York Times reports that customers should expect a 38 percent drop and are to pay from as low as $1.75 per watt depending on their location, a fall from the national average of $2.85 and even below Tesla’s previous pricing.

Tesla has been looking to cut on prices for its solar panels, one of the company’s prime business targets, as other sectors continue to disappoint.

The conglomerate has looked to standardize any of its additional accessories and included a cost-sharing mechanism for home installations.

With the slashed prices, customers will now be able to order solar panels in increments with each increment producing 4kW of power in 12-array of panels.

Moreover, the customers will do part of the installation process previously done by Tesla workers like taking photographs of electric meters together with circuit breaker boxes.

Tesla, in the meantime, is expected to speed up the solar roof in this year’s second half. This move is expected to revive the sharp decline in solar panel installations which for the first time in six years recorded the lowest levels in Q1 2019.

The company posted a decline of installed megawatts from last year’s 73 in Q1 to 47 this year, the Buffalo News reports. Tesla is now ranked third after Sunrun and Vivint Solar in the U.S. solar installations.

The solar roof is a unique set of solar shingles not different from the normal roofing materials. Launched in 2016, the roof was under testing having been installed on the house of CEO Elon Musk two years ago.

Musk noted that the roof is still under testing with more developments notwithstanding durability challenges which have delayed its launch.

Meanwhile, Tesla lost $702 million in the last quarter with the sales of its cars posting lower-than-expected earnings. It also hit several snags when delivering the cars to European and Chinese markets.

These losses are likely to drag into Q2 before the company stabilizes as it moves into the second half of 2019.