Tesla will rent solar panels to the owners

The smallest system can generate an average of 15 to 19 kilowatt hours of electricity per day in California and 10 to 14 kilowatt hours in New Jersey, said Tesla. Solar panels can still be purchased from Tesla in all 50 states.

"The bet they make is that electricity prices will continue to rise and that consumers will not ultimately want to cancel," analyst analyst Roth Capital Partners said.

Philip Shen

I said.

After the acquisition of SolarCity in 2016, Tesla began selling and renting solar panels in Tesla showrooms, with leases extending for 10 to 20 years. Later, Tesla began promoting sales rather than leases. However, residential and commercial sales, measured in megawatts deployed, decreased by 38% in 2017 compared to the previous year, according to Tesla.

Tesla, which was once one of the best residential solar installers in the US, ranked No. 3 in the first quarter of this year with a 6.3% market share, according to Wood Mackenzie, a company that follows renewable energy projects.

SunRun

Inc. is ranked first with 11%, followed by

Vivint Solar
Inc.

with 7.6%, he said.

In 2017, the number of US homeowners installing solar panels on their roofs decreased for the first time since at least 2000, after an average annual growth of 49% between 2010 and 2016, said Wood Mackenzie. But last year, sales began to rebound, rising 7.5%. This year, they are expected to increase 4.5%, Wood Mackenzie said.

Industry executives and analysts blamed the recent drop in sales for a sharp decline in domestic solar installers, including Tesla. According to them, the companies largely negotiated panel leases for little or no money, which affected their results and caused some people to reduce their growth or withdraw completely from the business. solar energy on the roofs.

In its letter to the shareholders of the first quarter, Tesla highlighted the problems related to its solar activity, saying that the traditional sales techniques of the sector are too heavy and limit the potential of the residential market.

As for its vehicles, Tesla said: "The key to accelerate the massive adoption is to standardize the product offering, simplify the customer buying experience and focus on markets where economic conditions are the strongest. "

Last month, Tesla told analysts at a call for results that he was optimistic about his future in solar, claiming that his "energy products business will grow"

Craig Irwin, an analyst at Roth, said Tesla's solar activity would not likely contribute significantly to short-term results.

Tesla Director General

Elon Musk

asked his followers on Twitter to intervene on his solar program. "Lmk, what are you thinking," he tweeted, using an abbreviation for "let me know."

Write to Sarah E. Needleman at [email protected]