San Francisco Chronicle

Tesla roof challenges industry

Innovative design creates confusion in marketplac­e

- By Vikram Aggarwal Vikram Aggarwal is the CEO and founder of EnergySage, an online solar marketplac­e backed by the U.S. Department of Energ y.

Elon Musk has set his sights on the solar industry, and industry veterans and technophil­es alike can’t stop talking about his latest entry into the market. Of course, it wouldn’t be a Tesla product if it didn’t redefine an entire product category. The company is promising a first-of-its-kind technology that pairs high-end glass roof tiles with hidden solar cells to create an integrated “solar roof.” The product is generating some of the biggest buzz that the industry has seen in years — but it could also threaten the very industry Musk hopes to reinvigora­te.

California homeowners are the first to have access when installati­ons start this month. When Tesla revealed the initial designs, homeowners who had never considered installing traditiona­l solar panels found themselves taking a second look. With a single product announceme­nt, Musk did the same for solar as he famously did for electric cars: He made it cool.

Solar panels have become much more efficient and affordable in the past few decades, but their fundamenta­l design and aesthetics were more or less unchanged. Traditiona­l solar panels are designed for the singular purpose of producing solar energy. The Tesla solar roof is different. At its core, it’s a luxury roof product that offers electricit­y production capabiliti­es as an added bonus — and it comes with a price tag to match.

By promoting his newest roofing innovation as a replacemen­t for standard solar panels, Musk is misleading consumers who may not realize that the cost of the Tesla solar roof will be equivalent to both installing a new high-end roof and buying a traditiona­l solar system. As a result of this ambiguity, prospectiv­e solar customers are taking a “wait and see” approach.

By delaying their solar decisions, these homeowners are making it even more difficult for rooftop solar installers to find new business at a time when growth in key markets like California is slowing. This slowdown is due to a dramatic shift in consumer preference.

Musk says the product will cost “less than a traditiona­l roof,” once you add in the value of the solar electricit­y that it generates. What this language obscures is that, by the best estimates available, the solar roof could still cost upward of $63,000 — more than triple the cost of a traditiona­l solar-panel system — yet offers significan­tly less electricit­y production per square foot. For homeowners who don’t also need to replace their roof, the high price tag can’t be justified.

It’s true that by giving traditiona­l solar panels a dramatic face lift, Musk has expanded the market of would-be buyers. However, consumers need to wait until more accurate informatio­n about the solar roof ’s price tag and electricit­y production capabiliti­es is available.

This isn’t to say that there isn’t space in the market for Tesla’s solar roof. The product is simply in a different category from traditiona­l solar panels in terms of cost, long-term savings, and yes, aesthetics. The Tesla solar roof should be viewed as a well-designed luxury roofing product first — its solar production benefits are an additional benefit, but not its core offering.

Musk may be generating much-needed excitement for the industry, but withholdin­g key product informatio­n from prospectiv­e solar adopters for the sake of hype won’t bring about the sustainabl­e energy economy he envisions. Until more comprehens­ive, transparen­t informatio­n about the all-in costs of the Tesla solar roof are made available, his revolution­ary product may only take the wind out of the rest of the solar industry’s sails.

 ?? SolarCity / Tesla Motors 2016 ?? SolarCity and Tesla Motors unveil four styles of solar roofs last year. The tiles contain solar cells and cost about triple the cost of a traditiona­l solar-panel system.
SolarCity / Tesla Motors 2016 SolarCity and Tesla Motors unveil four styles of solar roofs last year. The tiles contain solar cells and cost about triple the cost of a traditiona­l solar-panel system.

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