In the spring of 2017, Tesla announced pricing for its solar roof product: a roof replacement for your home. Four years later, Tesla is now on its third version of its solar roof and installations are becoming more widespread across the country. The solar roof requires that you replace your existing roof with Tesla’s blend of non-solar glass tiles and solar-enabled glass tiles.
The Tesla Solar Roof V3, introduced in October 2019, offers multiple upgrades, among which include larger tiles, lower production costs, increased power density, and easier installation. While this roof is designed to be more affordable than previous iterations of the product, customers have recently faced surprise price increases, which Elon Musk claims are based on underestimated roof complexity. However, due to its unmatched aesthetic design, the solar roof still offers an attractive solar solution for some homeowners, so we wanted to explore the question: does installing the solar roof make financial sense for you?
- Tesla’s solar shingles are likely less efficient than normal solar panels
- The price of Tesla’s solar roof varies significantly based on your roof’s complexity and size
- Tesla’s solar shingling is still more expensive than traditional solar panels for most homeowners
- Tesla’s solar roof can make sense if you have a simple and small roof and are looking for solar plus a roof upgrade, solar plus storage, or if you’re set on its aesthetics
- Explore your home solar options on the EnergySage Marketplace
Efficiency of the Tesla Solar Roof
One factor to consider when making a cost comparison between installing new solar panels and installing a new Tesla Solar Roof is efficiency. Tesla has not released data on the efficiency of its solar shingles, but EnergySage estimates that typical solar shingle brands range from 14 to 18 percent efficiency, whereas most solar panels are 22 to 23 percent efficient. It’s important to keep this in mind when deciding if the Tesla Solar Roof is worth it for you because your overall return on investment (ROI) will likely be lower than if you install new solar panels.
Tesla Solar Roof cost varies by roof design
The cost of installing a Tesla roof varies significantly depending on your home’s design. In April 2021, Tesla confused and frustrated many of its customers when it sent emails with increased prices to customers that had already signed contracts based on their initial quotes. While the company blamed these price hikes on underestimated roof complexity, Tesla has yet to provide a full explanation as to where its calculations faltered. The company did add a roof complexity estimate to its solar roof calculator, which adjusts the system’s price based on the roof complexity. On its website, Tesla divides the complexity into three categories–simple, intermediate, and complex–based on the following criteria:
- Simple: single-level roof, uncrowded mounting planes, few obstructions (pipes, chimneys, skylights), low pitch
- Intermediate: multi-level roof (roof sections built on multiple stories of your house), more crowded mounting plane, more obstructions (pipes, chimneys, skylights), higher pitch
- Complex: multi-level roof (roof sections built on multiple stories of your house), heavily crowded mounting plane, many obstructions (pipes, chimneys, skylights), steep pitch
You can start to estimate the cost of the Tesla Solar Roof for your property by using Tesla’s solar roof calculator.
Tesla Solar Roof cost: is it worth the premium?
To best explain Tesla’s solar roof cost and its price premium, we’ll provide an example of a household shopping for a traditional solar panel system. We’ll use this example to show how the cost of the Tesla roof compares to traditional solar panel systems based on the house’s complexity and roof size. We’ll explore four different scenarios based on what this household is seeking – read on to see which describes you best!
Our comparison example
Let’s say you live in California and spend about $200 per month on electricity. Based on this information, we would estimate that you require a 8.9 kW solar system to cover your electricity needs. We made this estimate based on the following information:
- According to the U.S. Energy Information Administration, in 2019 the average retail price for electricity in California was 16.89 cents per kWh. Based on this price, you use about 14,200 kWh each year.
- The production ratio in California typically ranges from about 1.4 to 1.8. We assume a production ratio of 1.6. This number indicates how much electricity your system will generate in relation to its size.
- You can estimate your necessary system size based on the following equation:
System size = annual electricity usage / production ratio / 1,000
Plugging in our numbers, we get:
System size = 14,200 kWh / 1.6 / 1,000
…which equals about 8.9 kW! As of May 2021, the average solar panel cost in California is $2.91/W. Thus, we estimate that a new solar installation would cost you about $25,900.
We’ll be using Tesla’s solar roof calculator to see what system size it recommends and how much it estimates the solar roof will cost. We’ll vary your roof’s complexity and square footage to show how these factors affect your cost of the Tesla Solar Roof. It’s important to note that these numbers will vary based on where you live, but the trends are generally consistent. The estimates provided are all before incentives and rebates.
Scenario 1: You are interested in going solar, but don’t need to replace your roof
This is the most common scenario for the vast majority of homeowners in the U.S. today. You’ve been interested in installing solar panels for a while, and realize that costs have come down enough for it to be an achievable home upgrade. You’ve also heard a lot of media buzz around the Tesla Solar Roof lately, but aren’t sure if it’s worth the cost. Most importantly, you don’t need to replace your roof in the next three to five years.
If this description sounds like you, the straightforward answer is that Tesla’s solar roof won’t make financial sense for your home. Here’s why: it is both a new roof and a solar installation. If you don’t need a new roof, you risk getting upsold on a product that you weren’t even shopping for in the first place. And the price tag of this upsell is considerable.
In our example, while we estimate that your household in California would typically install an 8.9 kW solar panel system, Tesla’s solar roof calculator quotes you an 8.2 kW system. This system would deliver about 92 percent as much solar electricity (not accounting for efficiency). Furthermore, we estimate that you will pay about $25,900 for your new solar panels before rebates; according to Tesla’s solar roof calculator, for a 2,000 square foot, intermediately complex roof with the specifications explained above, the solar roof would cost $48,460: an over $22,500 increase. However, this price varies depending on your roof complexity and size:
For a traditional solar panel installation, labor is the biggest cost that will be impacted by roof complexity. Our network of installers report that, on average, labor accounts for about 13 percent of their entire installation cost. Thus, roof complexity will impact the overall cost of your system. However, because the solar shingles in the solar roof are building-integrated photovoltaics (BIPV), the labor costs are substantially higher. If you have a complex roof instead of an intermediately complex roof, Tesla quotes you $54,940: an over 13 percent increase overall. Even if you have a simple roof, Tesla still quotes you $44,460: over $18,500 more than what you would pay for new solar panels.
While the cost of your new solar panels will roughly stay the same at $25,900 regardless of your roof size, the cost of a Tesla Solar Roof will vary significantly. The table below shows estimated quotes for you based on your roof size (assuming your roof is intermediately complex):
|Roof size (square feet)||New solar panels||New Tesla Solar Roof||Price premium|
Thus, even though your energy output is lower with the Tesla Solar Roof than it is with new solar panels, you are still paying more in every scenario. You’re paying more for less, and that just doesn’t make good financial sense.
Scenario 2: You are interested in going solar, and you also need to replace your roof
[Note: in this section, we are assuming that you have an intermediately complex roof.]
While this is a less common scenario, it may fit you if your current roof is coming up on the end of its useful life. This scenario may also fit you if you’re in the process of building a new home from scratch, and haven’t picked out your roofing material yet. In this scenario, unlike the first one, you are on the market and actively shopping for both a new roof and a solar panel installation.
If this description fits you better, Tesla’s solar roof may make more financial sense. In this case, you have the option of either replacing your roof first and then installing traditional solar panels, or combining both actions with the installation of a Tesla Solar Roof.
In our example, let’s assume a $5 per square foot cost for an asphalt shingle roof replacement for your home in California. Based on these criteria, let’s see how your new solar panel and roof replacement will compare to a new Tesla Solar Roof, based on varying roof size:
|Roof size (square feet)||New solar panels||New Tesla Solar Roof||Price premium|
So, in this case, the cost of new solar panels and the cost of a roof replacement and a new Tesla Solar Roof are most comparable if your roof is only 1,500 square feet. However, as explained above, it’s important to note that your ROI will likely still be lower because the efficiency of the Tesla Solar Roof is likely lower than that of solar panels and your system size is smaller – meaning your electricity bill won’t go down as much as it could.
Scenario 3: You are interested in solar plus storage
[Note: in this section, we are assuming that you have an intermediately complex roof that doesn’t require replacement.]
Storage is becoming increasingly popular to install with your solar panels depending on where you live. Especially if you live in an area that experiences frequent blackouts, you might want to pair storage with your solar installation to provide backup power. Or, if you don’t live in an area with net metering, you might want to store the excess energy that your solar system produces during the day to use at night. Whatever your reason, the Tesla Solar Roof could make financial sense for you, depending on how much storage you need.
In our example, let’s say you experience frequent blackouts at your home in California and want a storage system to provide backup power. While you’d probably only need one battery to provide backup for all of your essential appliances, if you want to power more appliances or experience long blackouts, maybe you want two. With your Tesla Solar Roof, you can only install a Tesla Powerwall, which provides 13.5 kWh of backup energy and varies in cost depending on how many you add. Thus, we’ll use this storage option in our Tesla Solar Roof estimate. We’ll use LG Chem’s RESU battery in our solar panel comparison, which is a frequently quoted storage option on the EnergySage Marketplace and provides 9.3 kWh of backup energy. The RESU battery generally ranges in price from $11,000 to $13,000, so we’ll use $13,000 to be conservative. Using these criteria, let’s explore how a new solar panel plus storage installation would compare to a new Tesla Solar Roof plus Powerwall, based on varying roof size and number of storage systems:
|One storage system||Two storage systems|
|Roof size (square feet)||Solar panels plus RESU||Tesla plus Powerwall||Price premium||Solar panels plus RESU||Tesla plus Powerwall||Price premium|
Again, you are paying more in every scenario by going with Tesla. However, you’re getting more backup energy as well, so depending on how much storage you want or need, you could end up deciding that a Tesla Solar Roof makes sense for you here.
Scenario 4: You love the solar roof aesthetics, want solar, and have money to spend
There are certainly homeowners out there who simply love the aesthetics of the Tesla Solar Roof and want it installed, regardless of the price tag. For shoppers in this category who are considering solar or even a new roof, the Tesla Solar Roof could be a good fit. In fact, we believe that the majority of buyers for Tesla’s solar roof come from this fourth category. At EnergySage, we think that more solar on rooftops is always better than less, and are glad that this group has an option that best fits their needs.If you’re a homeowner trying to understand what all your solar options are, we always recommend you get as many different quotes as possible so you can compare the pros and cons of each offer. Try EnergySage’s free Solar Calculator to better understand the economics of putting solar panels for your roof. Once you’re ready for actual quotes, join the EnergySage Marketplace to receive competing solar installation offers from our network of 500+ pre-screened solar installers. Backed by the U.S. Department of Energy, our mission is to make going solar as easy as booking a flight online.