Tesla Solar Is Becoming More & More Affordable

John with Tesla Owners of Silicon Valley shared some interesting Tesla Solar news for those planning on taking out a loan to install it. He discovered that Tesla introduced better interest rates on solar loans. Previously, the loan option was for a 20-year plan with 10% lower and 5.99% APR.

Recently, Tesla made the loan option much more affordable with a new 10-year plan, 10% off the cost and only 0.99% APR. John tweeted that this was a complete game changer and that Elon Musk is making solar more affordable.

Breaking: @tesla introduced better prices for solar energy. 10 years 0.99% with 10% less. 20 years ago it was 5.99%. Complete game changer. @elonmusk is making solar more affordable. Take my money Tesla. pic.twitter.com/faQmqboczl

– Silicon Valley Tesla Owner (@teslaownersSV) June 15, 2021

On a Twitter direct message, John told me, “I had 5.99% solar credit for 20 years. Then I saw on the website that it had changed to 0.99% for 10 years. It literally takes me half the time to pay out the same rate. “

John shared a screenshot too, and if you look at his details, the loan is cheaper than my own electric bill on a monthly basis. This is with 4.08 kW solar panels and a Tesla Powerwall. After the federal tax credit and California solar renewables credit, its total cash price drops from $ 20,292 to $ 14,835. His estimated loan payment is $ 160 per month before the incentives – and after that, it drops to $ 112 per month. This applies for 120 months with an APR of 0.99%.

Image courtesy of Tesla

Elon Musk explains Tesla’s low solar cost in 2020

In 2020, Zach Shahan wrote an article for CleanTechnica after having a brief chat with Elon Musk about the low cost of Tesla’s solar offering.

Zach asked Elon Musk how it came about that Tesla made the cost of rooftop solar panels so low, lower than apparently anyone else in the industry. Elon said:

“The costs for the solar panel are only ~ 50 cents / watt. Mounting material, inverter and cabling cost ~ 25 cents / watt. The installation costs ~ 50 cents / watt depending on the system size.

“The other solar companies spend a lot on sales, advertising and complex financial instruments. We are not.”

That information came shortly after Tesla announced that rooftop solar systems across the country would cost around $ 2 per watt, down $ 1.49 / watt according to the U.S. federal tax credit. However, all of this only covers the cash cost. When financing, like many, you also have to pay interest. This is where this week’s news comes in. Offering 0.99% APR instead of 5.99% means further savings (dramatic savings) for people who rely on Tesla for solar energy.

US solar installations up 46% in the first quarter of 2021

Solar installations in the US rose 46% to over 5 gigawatts in the first quarter of this year, CNBC just reported. The article cited a report by Wood Mackenzie and the Solar Energy Industries Association. Here in the US, we are well on the way to installing 24.4 gigawatts this year, an increase of almost 24% over the previous year.

Technology costs have also fallen so far that solar energy is now competitive with electricity from fossil fuels.

Almost three quarters of the entire solar segment came from projects for energy suppliers and other major customers in the first quarter. Much more is also planned. This part of the market has projects worth almost 77 gigawatts in the pipeline.

The demand for clean energy, especially solar energy, is high and will only increase with more competitive costs and interest rates.

So far, almost 100% of the new power capacity added to US grids comes from wind and solar power. That resulted in 25.5% of US electricity coming from renewable sources in March.

However, the Biden government wants much faster growth. “The growth of the sector has also benefited from a longstanding generous federal solar energy system tax credit that President Joe Biden’s administration is seeking to extend Congress for a decade to address climate change by investing in clean energy,” CNBC writes.

A combination of expanded solar tax credits, more state and federal support for solar energy, lower solar costs and interest rates, and increased consumer awareness should result in many more record quarters for solar power systems and solar power. Whether from Tesla, Sunrun, SunPower, Vivint Solar or others, many more solar modules are installed on roofs every day of the year. Large solar projects are also built in the open. Stay tuned for more sunny solar news.

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