Tesla began taking reservations for its high-efficiency solar roofs Wednesday — even as online customers reacted with sticker shock.
PALO ALTO – After a Hollywood reveal, Tesla is ready to bring its solar roofs to Main Street — or perhaps just to some exclusive suburban enclaves.
The Silicon Valley electric car and clean energy company began taking $1,000 reservations Wednesday for its power-generating solar roofs. The company says the tiles will be priced competitively to traditional roofs, when factoring in energy savings and tax credits over the expected 30-year lifetime of the system.
Tesla believes the solar roofs will appeal to existing customers and expand its reach into the residential solar market. The company acquired one of the country’s largest solar installers, SolarCity, last year.
Tesla announced the new products in October at Universal Studios, where prop houses were shingled with four different prototypes.
Two of the four roofs, black glass in a smooth or textured surface, are now on sale and ready for installation this summer, company CEO Elon Musk said. Two other varieties, Tuscan and Slate, are expected early next year.
High-efficiency solar cells are embedded in the shingles and wired together to form a power-producing system. Some tiles will not contain solar cells, but the roof will appear uniform when viewed from the street.
The price depends on several variables, including the number of solar cells, size of the roof and style. For example, a typical roof and Powerwall battery system would cost a homeowner in Maryland about $60,000 to install, the company said. Tax credits and the value of electricity over three decades would pay for the roof and net a typical property owner an additional $8,000, the company said.
Tesla estimates a typical system will cost $21.85 per square foot, based on covering 35 percent of a roof with solar tiles. The company also assumes the roof would generate $53,500 worth of electricity over its lifetime.
Some prospective customers mixed their enthusiasm with skepticism on social media. One Texas man calculated his costs on the company website and estimated he would pay $99,100 to put a Tesla roof on his $200,000 home.
Musk acknowledged it won’ t make financial sense for every homeowner.
“The economics are not yet compelling where housing and utility costs are low and property taxes are high, ” Musk answered the homeowner.
The roofs expand Tesla’s offerings to environmentally conscious consumers. The company also sells electric vehicles, home and commercial batteries and solar panels.
Baird Equity Research senior analyst Ben Kallo wrote this month that the company will benefit from the expanded product offering. He noted that Tesla could gain from cross-selling solar roofs to Tesla owners.
Tesla stock ticked up 1.2 percent on Wednesday.
The solar industry has continued to grow, particularly in California. The Solar Energy Industries Association estimates the market will nearly triple in size over the next five years.
But the market for built-in photovoltaic products has not been robust, said Randy Zechman, CEO of San Jose-based installer Clean Solar. He believes Tesla can find a small market with affluent and tech-savvy homeowners in the Bay Area.
His company has offered similar products to customers for about a decade, he said, but homeowners have been put off by the high cost. The tiles are less efficient than solar panels and require more labor-intensive installation.
“You buy solar for one reason, ” Zechman said. “to lower your energy bill.”
