Renewable Energy Power
Solar system
Tesla will rent you a solar panel for $50 a month.

Elon Musk is trying to rethink the solar business. But will this work?

Earlier in the decade, the rise of third-party solar power overturned the US residential solar market. The leasing and power purchase agreements allow companies like Sunrun, SolarCity, Vivint and Sungevity to provide rooftop solar energy to the public to eliminate the large upfront costs and credit checks associated with the purchase of $30,000 accessories and quickly become the dominant business model.

But as loans became more complex, Tesla kept SolarCity away from its aggressive sales and growth path, and third-party solar markets shrank. There are currently several successful companies in the space, but most residential solars are sold through loans and direct purchases, and market leaders Sunrun and Vivint are plagued by ever-expanding customer acquisition costs.

As usual, Tesla is making his own path. In a series of tweets on Sunday morning, Elon Musk revealed a new strategy: renting solar energy. The company offers small, medium or large PV systems for rental homeowners ranging from $50 to $195 per month and system capacities ranging from 3.8 kW to 11.4 kW.

On Twitter, Musk is particularly optimistic about the ability of the product to save money for customers, which is estimated to save customers about $500 a year.

The lease option eliminates any long-term contracts, but it takes $1,500 to remove the system at the end of the lease period. This explains why other companies have not tried this option: PV systems are semi-permanent accessories that are not easily removed once installed.

The launch of the solar-powered rental option comes directly from Tesla's move to sell solar energy through its website, and like the rental option, the Internet buying option shows significant savings by eliminating sales and multiple transaction costs. While Tesla provides a calculator to show customers' savings, the cost savings and ease of trading will make it possible to see these options reverse Tessla's contract share in the rooftop solar market.

In fact, in addition to leasing, buying yourself is also a good choice. Bluesun offers a small 2kw off-grid system, 5kw on-grid system, and 10kw hybrid solar system.

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