Tesla has ditched its solar panel subscription service, only offering cash or loan purchasing options, according to its website.
In late 2019, Tesla launched the subscription service for its solar panels. The subscription-based payment option enabled solar customers to pay an affordable monthly fee for solar panels at their residence. Prices were extremely low, with some owners paying as little as $65 a month for the service. Tesla also offered other incentives to encourage people to utilize the subscription service.
The subscription service effectively eliminated the cost barrier of entry, as outfitting the average 2,500-square foot home would cost between $18,000 to $20,000. It made solar options more available to those who were not able to front a significant chunk of cash initially for sustainable energy.
Tesla continued to expand its subscription service by rolling out several more systems with different kW ratings at more affordable prices. However, it appears as if the company has decided to ax the subscription program as it has disappeared from the company’s website. Instead, Tesla is opting for its more traditional cash or loan options, just as most people would do when buying a vehicle.
The reason Tesla decided to get rid of the subscription program is unknown. The company did not immediately respond to Teslarati‘s inquiry about the decision.
Tesla’s solar business is one of the company’s most undervalued business ventures, as it is rarely talked about by analysts who are tasked with discussing the company’s stock. In Q2 2021, Tesla stated that its solar deployments had more than tripled from the same period in 2020, with solar roof and solar panel deployments both contributing to the cause.
The company wrote in its Q2 2021 Shareholder Deck:
“Solar deployments reached 85 MW in Q2, more than tripling YoY. Additionally, cash/loan solar deployments more than quadrupled YoY. Solar Roof deployments grew substantially both YoY as well as sequentially in Q2. Thus far, our solar + storage product remains very popular, and we continue to improve efficiency of our install crews.”
It is very likely that Tesla was not seeing many of its customers choose the subscription option, as more owners may have opted to buy the system outright or finance it instead.
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