That being said, I love these things, so hoping it gets cheaper in the coming years.
That being said, I love these things, so hoping it gets cheaper in the coming years.
Tesla's calculator estimates $40,500 for a roof that generates half our power needs, and should provide $20,400 worth of energy over 30-years.
Add in a PowerWall and federal tax credit, and I'm still losing $15,400 over 30-years.
If I put that same $40,000 in an index fund that got the stock market's historical 7% average, and waited 30 years, I'd have $308,000.
To put it in another perspective, the last estimates I got for a solar system that covered 100% of our average power needs came in at $32,000 installed, before the same $11K tax credit that Tesla includes in their calculations.
So, I could pay under $20,000 for a "traditional" solar system that covered 100% of our energy bills, or $40,000 for a Tesla solar roof that covered 50% of our energy bills.
That's quite literally half the value, at twice the price.
If I put in a traditional solar system tomorrow, it would pay for itself in year 9. If I put in a Tesla solar roof tomorrow, I'd still be out $15K at year 30.
This depends quite strongly on where you are. Your numbers are very close to the ones I get if I use my correct address, which is in the Puget Sound area of Washington State.
If I keep everything the same except the address, changing that to one in Merced, California, then it says I'd get $75000 worth of energy over 30 years.
PS: it looks like they try to use the address for more than just finding the location in order to estimate how much sun is available. I tried an address that I had lived at in Pasadena, California, and it did not ask me for the house size and number of floors. Instead, it did the calculation using about 6000 sq ft, which is about the size of the apartment building that is at that address. For my Seattle-area and Merced addresses, it did ask me for the house information.
He was only allowed to take his 20% project to 100% after his manager wrote up a justification XD
My turn to be pedantic, I guess, but 80 and 443 are only two of many available ports. The internet is much bigger than just the web, even if lots of people never bother to look beyond their browser.
It's kind of comforting to know that my academic and computing experiences thus far are shared both across the globe and across decades.
Isn't it amazing how big of a disconnect there is between "people who are capable of identifying/executing on big ideas" (aka Tim and his manager)....
and "the projects that businesses/agencies want their employees to do"
GMail however is a 20% project. :)
Are you doing the math all in present dollars? Because the return is 7% after inflation but >10% before. So you'd have >500.000 in 2047 dollars. In this case it's important to do that adjustment because you're doing an investment upfront for payoffs over 30 years so the value of money adjustment is extremely important. It should only make your case stronger though if you haven't done that yet.
Solar is not going to have a similar impact on (say) Ireland in the next 30 years.
Probably the bigger impact is bad incentives for the people building the grid, who are often able to do what they like and get a guaranteed percentage return on top, which pushes them to spend more than they need to. This has been particularly pronounced in Australia I believe.
This might also be why utility companies have been furiously lobbying against rooftop solar subsidies and Barclays have downgraded US utility bonds.
For example from "Market failures and barriers as a basis for clean energy policies by Marilyn A. Brown" we read:
"Meier and Whittier (1983) studied a case in which consumers were given a choice in stores throughout the United States of two refrigerators that were identical in all respects except two: energy efficiency and price. The energy-efficient model (which saved 410 kilowatt hours per year, more than 25% of energy usage) cost $60 more than the standard model. The energy-efficient model was highly cost-effective in almost all locations of the country. In most regions, it provided an annual return on investment of about 50%. In spite of these favorable economics, which were easily observed by the purchaser, more than half of all purchasers chose the inefficient model. The higher purchase price of the efficient model was presumably the principal barrier to its purchase."
An annual ROI of 50% is left on the table because people have to pay something upfront for benefits later!
Tesla's pricing strategy here is quite blunt. They hope people don't care about the costs, only the looks and the sustainability.
Disclaimer: I don't know how sustainable the manufacturing process of this solution is.
I think if this is the case, they certainly don't want to hint at it incase they lose consumers who will sit back and wait for the cheaper option they ironically wouldn't arrive.
Current expert thinking is that there is a 4% equity risk premium over cash interest rates. Current cash rates are 1% nominal or -1% real. If you are an optimist like the Fed, cash rates will rise to 3% over the long term - which gets you to 7% nominal/5% real at best.
stock market isn't a very safe investment (that is, risk is much higher than putting in a bank), you can't make a comparison against buying some equipment, which is zero risk. A closer comparison is putting the $40,000 in a bank that guarentees interest (or treasury bonds, which is also pretty much risk free like a bank) - you'd get $99,457, which is $59,457 over your initial investment.
Maybe Tesla goes out of business or drops support for this product? Maybe they aren't as durable as planned? Also, a roof is part of a house which is a very illiquid investment, and there are a lot of other factors affecting the price of a house.
But, presumably people aren't buying this just as an investment. If you're going to put a lot of money into a house anyway, maybe a fancy roof isn't so bad.
Equipment isn't zero risk. It could fail and need replacement, or need dramatic repairs. Or the price of electricity could drop dramatically and your investment won't be saving you as much in electricity bills...
This is terrible. They've gotta be just trying to snipe rich early-adopter-for-the-status types.
Since Tesla's products are expensive, it would be a regressive tax even if we all bought enough solar panels for our needs.
Yes, solar roofs are a bad investment NOW, but they might be a good idea in 20 years, once all these businesses have done this research on them.
1) It should be in exchange for preferred stock/bonds in the company; and/or
2) the tax credit should favour lower prices, not higher
Tesla? The company that brought you the Roadster first, then the Model S and X, and only later the Model 3? I'm shocked. ;)
Which you probably sink into a second layer of asphalt shingles 15-20 years in (at least up here in upstate NY where there's plenty of rain/snow). Hopefully it's not a tear-off, as that'll cost more.
Please don't seriously suggest Tesla's solar roof will last the lifetime of a house to people.
The real warranty is 30 years for power and weatherization.
Its misleading marketing speak (at best).
https://www.tesla.com/solarroof#order
> Weatherization means that there will be no water leaks or other weather intrusions during the 30 year warranty period that result from our installation.
It will almost certainly require replacing and/or serious repair long before the "lifetime of the house" is up.
In Colorado it's against the laws for HOAs to ban solar systems, there are some tricks though because they can require certain roofs that you can't really put solar on. Certain tiles and 'presidential' grade roofing which typically cost more than normal shingles as it is. If you live in one of those types of places and want an energy system, then this is what you want. Honestly, I've not heard a lot of complaints about the aesthetics of a conventional solar system, in fact I think some people like it because it's really obvious looking; but if you have the funds and really value the look, then there is an option for you.
It's probably not that different from the market for a Model S vs a Honda Accord. The S is 3+x the cost of the Accord, has fewer fueling stations, can't be serviced nearly as easily, probably is less 'practical' in a handful of other ways but there are still people that buy and drive Model S Tesla cars.
...and the cost to remove your current perfectly good roof! I think I smell a bargain!
Every thread about Tesla cars has a subthread about how irrelevant they are because they cost too much for some car buyers. Now we can look forward to every thread about Tesla roofs having a subthread about the initial product not being price-competitive for low-end roof buyers.
Someone that doesn't install solar can sell the home without worrying about recovering that cost.
Can't project finances much more than 10 years max. At the moment cost of capital is low but that may well change in that time-frame. Things have to make sense in a decade or so also considering that this new technology that is obsoleted by incremental innovation.
The same can be said for your local fly-by-night roofer, but it sounds like you can buy two roofs for the price of a SolarRoof.
Also, another thing to be concerned about is whether or not you're going to be stuck in the middle of a pass-the-blame around football match between Tesla, and their subcontractors. (I guarantee you that the people installing your roof will not be Tesla employees.) In roofs, installation mistakes can cost you dearly - they are the primary cause of roof problems.
Unless they meant a "new roof" as in when you build a house from scratch and you don't have rafters or anything. If you have an existing roof you are redoing every 20 years or so, then this is definitely not the cost of a "new roof".
So, which "new roof" are we talking about here?
That makes very little sense. You're making an apples to oranges comparison here. It would be absolutely impossible to pull that off. It's literally the premium roof + solar and you want it to be the same price as premium roof (thus, you want the solar hardware to cost nothing.
Only one of these generates electricity, thus saving you money and that must be included in the cost calculation in order to determine the actual cost.
And yet it was promised by Musk. Literally "a solar roof will actually cost less than a normal roof before you even take the value of electricity into account".
Don't attack your parent poster for Musk's lies.
In either case, you can finance the costs. Given how Solar City usually operates, I imagine they'll roll the costs in a lease or power purchase agreement where you send them a check each month for an amount less than your current electricity bill.
I'm not saying it's the best deal around. You could come away with an even better net total by re-roofing and putting on traditional solar panels. But then you've got an uglier roof, if you care about that sort of thing -- and there are definitely people who do.
For this to succeed it is going to have to cost the home owner at least what a shingled roof would cost with the additional cost of the power-wall and the infrastructure that is required to to set that up. I can understand paying a slight premium but 70k?
You would be better off using a high performance insulation like spray foam, 3 pane windows, and even installing a Geo Thermal System (around 20-25k) instead of this solar roof.
I wonder on what price home would a $80k roof make sense? >$800k?
A roof that exceeds 10% of the purchase price is likely to push the house outside of the price range of buyers in the target market.
I know a friend of mine (who has a solar system, not quite the same) but basically got almost nothing for it. The aesthetics of a "Solar Roof" is better but I don't see it raising the value of the house by more than 10%.
I used their calculator using the estimates when I had my roof done last time, and it is just not economically feasible.
$60k roof vs. $6k roof.
Net of $12k savings over 30 years.
$60k over 30 years (adjusting for inflation in conservative investments) is easily going to hit $180k.
But like others have said... there are plenty with a lot more money than I have which will jump at this. I'm ok with that. The more wealthy folks that install these and take their load off the grid, the better.
For example if you don't have a southern facing roof then this is going to be a terrible investment. However, this is also a home improvement which means a low interest loan which has many tax advantages, remember you pay your electric bill with after tax money but you pay interest on a home loan with pre tax money. Further electricity costs increase with inflation, so your out of pocket investment may be tiny while the value of electricity generated is increasing.
EDIT: That's sort of the kicker. A regular roof does not get a 30% federal tax credit (plus possible state incentives), nor does it produce power for 30+ years, nor does it have a lifetime warranty. If you can obtain low cost financing, you almost always come out ahead.
Maximizing retirement savings is still likely more cost effective than this roof for most people and I doubt many people in the US are putting away $24k/year.
The only way I'd see this is as viable is below inflation interest and people showing they can sell the houses for the full value of the Tesla roof.
If I understand the tax credit correctly, it's only available if you're paying that much in taxes otherwise. For a $60k roof, you have to already be paying $18k in taxes to take full advantage of the credit. That's an important detail for some.
It sized my roof at more than 2x the square footage of my house.
It also estimated my monthly electric bill at 4x what I pay on a monthly basis.
Changing those numbers put them to something closer to a new roof; and is definitely competitive with putting on a new roof and then paying for a solar panel installation.
The area I live in just had a huge hail storm. Most roofs in our neighborhood will require repairs. That's a bummer with asphalt shingles, but it would be a lot worse with an $80k roof.
Most people won't think about those risks, but over the time period you need to consider for a roof, it's a big risk in most places.
That's hardly pocket change in most of the country, where you can get a lot more sqft/$ (and potentially in a bigger, 1-story footprint) than on the west coast.
Not everyone has a two story house. My parents live in a single story 2k square foot home and tesla estimates the cost to be $69k. I live in a 2 story house with more groundfloor space than 2nd story, and it estimates the cost at $60k
Solar Roof is the most durable roof available
and the glass itself will come with a warranty
for the lifetime of your house, or infinity,
whichever comes first.... Or 30 years. You know, whichever comes first.
> That being said, I love these things, so hoping it gets cheaper in the coming years.
Yep. Perhaps in the future.
What does political affiliation have to do with this? People being excited about new and innovative technologies like electric cars, space travel, and solar roofs is great news for people reading a site like Hacker News - I don't think it would be out of line to suggest most new technology is marketed towards those with the disposable income to purchase it.
There is no need to make this into a "stupid liberals just trying to score points" issue.
Well liberals love to pretend they are environmentally "conscious" while conservatives are "drill baby drill"? Right? Maybe I should have written fake california liberals.
> People being excited about new and innovative technologies like electric cars, space travel, and solar roofs is great news for people reading a site like Hacker News
I love innovative stuff. Solar roof isn't innovative.
> There is no need to make this into a "stupid liberals just trying to score points" issue.
I wasn't trying to score points. I was just being honest and offering my opinion. I'm fairly liberal myself...
From their chart, the solar tiles (installed) should only be about twice as much as asphalt.
(1) The solar tiles aren't actually on the chart. If they were, they'd have to extend the scale more than twice as wide as what's shown, out to past $40 per square foot based on their calculator.
(2) The bar that is on the chart is for their "non-solar" tiles, plain glass squares. That's the one that's twice as long as the bar for asphalt tiles.
The solar glass tiles are actually more like 10x the cost of asphalt shingles, including installation.