Tesla Is Providing Renewables On Rent After Facing Fall in Sales

Tesla Is Providing Renewables On Rent After Facing Fall in Sales

Business

On Sunday, Elon Musk, Tesla CEO, has announced a new solar panel rental scheme. With this move, the company aims to relaunch re-launch and boost its business. It seems like Tesla is launching the subscription as an alternative to refresh the sinking fortunes of its renewable-energy business. Currently, the exclusive rental plan is available in six states – California, Massachusetts, Arizona, New Jersey, Connecticut, and New Mexico. Thus the people living in areas mentioned above can avail the new rental service.

It will cost a minimal of $50 per month (exclusive of tax) with no in-advance installation costs or lengthy agreement. The monthly charge also includes other aspects like maintenance services, along with other essential hardware. Under the new plan, installation of setup charge ranges from $65 (for a small unit) to $195 (for largest installation). Musk notes the company will not impose cancellation fees in order to halt the agreement. Thus customers can cancel the deal anytime; it will price $1,500 to remove the system. According to the company’s website, this fee is to wrap up the costs of removal. Even more, Tesla states the charges do not make any profit to the company.

Tesla is one of the significant installers of renewables which operates through SolarCity. The electric carmaker had acquired the company in August 2016. Since the takeover, the company has experienced a substantial fall in sales. Even more, in Q2 2019, Tesla has offered only 29 MW of new solar equipment. Whereas, its competitors in the sector like Vivint Solar or SunRun, have delivered more units. The arrival of new rental scheme arrives a few months after Tesla reduced costs on its solar panels universally.

All in all, Tesla seeks to revamp its home solar panel business which has flagged since acquisition. On the other hand, Musk attempts to win over future customers. He says the scheme is like fixing a money-printing machine on the roof. This Musk’s message is for prospective consumers who reside in states and pay high energy bills.