Tesla Inc. (NASDAQ:TSLA) has revamped its solar business over the past year with new solar panels and low prices. The company is now pushing its solar power products before the end of 2020 when federal tax credits will drop.
Solar power product credits to drop in 2021
In the past, US taxpayers with installed solar power system have been receiving a 30% tax credit on the cost of the system. This year the tax credit dropped to 26% and will drop to 22% in 2021. Tesla is reminding people about the deadline since the rooftop solar power business comprises a decent portion of its operations. In a tweet, the company urged people to order solar panels before the drop before the end of the year.
Tesla is turning things around following a drop in solar deployment after the SolarCity acquisition. The company recorded 57 MW od solar deployment in the last quarter compared to a record low of 27 MW in Q2. The company wants homeowners to tale advantage of the credit by having installations in time for the remaining two months.
Since installations time can vary depending on the market and size of the installation, homeowners should hurry to take advantage of the window. Interestingly once it gets started, it is quick and there have been instances where Tesla solar panel installations happened in a single day. The tricky part is that it could take a while before the Tesla Installation crew gets to your house.
Tesla offering lowers solar PV system rates
It is important to note that the policy change applies to all solar power systems and not just the Tesla one. Therefore homeowners should consider getting solar power installation quotes from different providers, but Tesla offers the most competitive rates with their rooftop solar PV systems coming at prices below the national average. Currently, Tesla is offering the rooftop solar PV for $1.49 per watt across the US.
There is talk that a Joe Biden administration will reset the solar panel initiatives, but that could take time before it happens.