Musk is backing the Solar Roof product (pictured) for a solid 2021 performance. Image: Tesla.
Tesla has said its strategy to deliver the lowest-cost solar rooftop installations in the US is paying off after it witnessed a doubling of installs in Q3 2020.
Reporting its Q3 performance late yesterday, Tesla confirmed that it had installed 57MW of solar rooftops in the three months ended 30 September 2020, more than double the 27MW it installed in Q2 2020. Quarterly installs were also up 33% year-on-year.
The rebound will come as solace for Tesla after Q2 2020 solar installs dipped to the company’s lowest on record.
Earlier this year Tesla said it would offer the lowest cost solar installation on the US market at US$1.49 per watt. On an earnings call yesterday RJ Johnson, Tesla’s newly appointed energy business lead, said it had managed to do so by leveraging the company’s existing EV ordering infrastructure for its solar business. This has allowed the company to “substantially reduce” its soft costs, keeping its fixed costs relatively flat against an uptick in volume.
Tesla is now looking to roll this out across the rest of the energy business.
While it gave no precise figures for installations – a common trend within its results – the company did note a sequential trebling of installs of its Solar Roof product in Q3 2020, with founder Elon Musk describing it as a “killer product”.
“This will become obvious next year,” Musk said.
The company is now working to accelerate its onboarding of installers who are trained to install the product, described as the biggest hurdle to greater adoption of Solar Roof in the US.
Tesla also noted a significant uptick in energy storage installations, which reached 759MWh in Q3 2020. This was up 81% sequentially and 59% year-on-year, with Tesla indicating it had more demand than supply for energy storage throughout 2021.
Late last month Tesla hosted its Battery Day where it detailed plans to reduce manufacturing costs for energy storage through various means. It expects the changes to be transformational for Tesla’s energy business as a whole, and Musk continues to back the division to be just as big, if not larger than its automotive arm in the future.
Total energy generation and storage revenue for Q3 2020 stood at US$579 million, up 44% year-on-year.
May 26 - May 27, 2021
Looking at the drivers and dynamics of utility scale solar in the UK & Ireland over the next five years. This event will consider the immediate challenges as we enter the build phase in both these markets where we could see as much as 4GW deployed in 2021 alone! What developments will continue the growth of 100MW+ sites and what impact will government policy have on the rate of deployment in both markets?Join leading developers and manufacturers shaping the direction of one of Europe’s most active markets and hear from speakers with a history of influencing innovation and change.
Feb 23 - Mar 03, 2021
The Energy Storage Summit plays a pivotal role in the journey to propelling the industry into the next stage of its development, providing an unrivalled platform to develop the right partnerships and create business opportunities of all sizes. This eco-system event brings together the entire value chain including Utilities, Developers, EPCs, Investors, Manufacturers, Energy storage providers, local government and DNO’s making this the must–attend storage event for 2021. Not just virtual, but you will get 4 days of content over the course of 2 weeks.