Tesla Cuts Down Prices On Home Solar Systems Amidst Efforts To Increase Sales

Tesla
Flags fly over the Tesla Inc. Gigafactory 2 a joint venture with Panasonic to produce solar panels and roof tiles in Buffalo New York
(Photo: REUTERS/Brendan McDermid/File Photo)

In celebration of the company being able to reach another milestone in its plans to streamline its solar sales process, Tesla Inc is cutting down on the prices of its residential solar systems by as much as 20 percent, a company official said on Thursday.

As part of Tesla's continuing effort to move away from the sales rut it got stuck in after its latest decision to reorganize its sales and marketing organization, the company will be slashing the prices of its home solar systems with price quotes now ranging between $3,000 and $5,000 lower than the original price. This figure represents savings of up to 15 to 25 percent, Sanjay Shah, the tech firm's senior vice president of energy operations told Reuters.

Shah further revealed that the aforementioned new price reduction rate should only comprise the average of what a potential buyer can save. Moreover, the actual amount made after the price quotes should go even lower.

Tesla, however, clarified that this would all depend on the size of the required rooftop system as well as the location of the residential property to where it will be installed.

Via Clean Technica, the Tesla spokesperson said that the price decrease was also made in part of the company's decision to integrate its solar products into its main retail stores - a process Shah called vertical integration.

By this, the Palo Alto, California-based tech giant was able to close down dedicated sales channels such as door-to-door selling which, as Shah pointed out, was very expensive to maintain.

The electric car maker is also pushing on its goal to implement a strategy that would expedite the sale and installation processes which would consequently accelerate the adoption of the solar energy system in the community and in the world over.

According to the industry watcher, this new pricing scheme from Tesla might prompt larger solar systems provider to follow suit, further benefiting the average consumer who should now be able to easily gain access on quality sustainable energy systems such as this.

The price cut scheme appears to only apply on Tesla's solar panel installations, a report from Electrek clarified. As pointed out in the article, the strategy is the company's way to ramp up its solar energy sector.

Tesla itself is one of the biggest users of its own solar panels. In fact, the firm's Gigafactory 2 is now exclusively using Tesla-branded solar panels.

Next stop for Tesla is the implementation of solar Powerwalls technology which is its proprietary home energy storage device.

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