Tesla Energy has confirmed that its solar systems for homes will now be up to 20 percent cheaper. These systems were previously offered by SolarCity which was acquired by Tesla. It’s now Tesla Energy and the company sells its products through the electric car maker’s network of retail stores as well. SolarCity was the largest U.S. residential solar company at the time of its acquisition two years ago.
Tesla Energy attributes the price cut to “vertical integration,” which has allowed it to increase efficiency and close more expensive sales channels like door-to-door sales. This enables the company to reduce prices for its solar systems.
Not only did Tesla cut door-to-door sales, it also ended a long-standing SolarCity deal to sell the panels at 800 Home Depot stores. It did bring the majority of solar sales but also added up to $7,000 to the cost of a residential system, according to analysts.
Sanjay Shah, the company’s senior vice president of energy operations, told Reuters that price quotes for potential solar customers will now be between $3,000 and $5,000 lower. This is an average figure and the company points out that the actual figures can be higher or lower depending on the size of the rooftop system and where a home is located.
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