Why is Tesla Solar so Inexpensive Compared to Others?

[Laketime]

Even so, is a few hundred dollars worth of food replacement worth 20 to 30K worth of batteries?

Food replacement is only one small part of energy backup. From TV, lights, heat, internet, AC, pond pumps etc. There are many different things life runs on besides the fridge, especially now that so many of us are working from home. We have 11 koi (with our new baby born last year!) that eat out of our hands, I'd be devastated if they died if the air pump and filters went dead for 24 hours.

Back up generators are nice, I've used them on and off for a decade. But they are a pain, and when Sandy hit us and gas lines formed it wasn't pretty. When fights started to regularly break out on the lines I knew the method sucked (and I needed home protection). For you only the fridge matters, for many others that is one small part of it. And they don't cost $20-30k net. After taxes and incentives they could be much less. I paid $8600 for 3 walls after all credits and discounts.

 

[brucet999]

When friends of ours were looking at buying a house in San Jose a few years back they very much were interested in a home that already had solar installed. Kind of like us who when we were looking for a new home back in the early 2000s only wanted to buy one that had low-e glass at the time. Realtors may not know how to value it but energy conscious buyers who don’t want to go through the whole install process look to check at least solar off on their search list.

I'm sure you are right, but without assessors valuing it, some people may not get a loan for the higher value, so price competition for your house listing is reduced.

 

[Ostrichsak]

I'm sure you are right, but without assessors valuing it, some people may not get a loan for the higher value, so price competition for your house listing is reduced.

I would say the same thing I tell people about the "book value" on a car I'm selling.... what your lending institution is willing to loan you due to your specific lending situation doesn't constitute my selling price. Loan-to-value is only one of the dozen or so factors to include down payment. If you want to buy my item you'll find a way to come up with more down payment. The assessor's 2-year-valuation of my property has nothing to do with what I sell it for. Too many people these days get the simple fact twisted that banks don't set prices. Buyers and sellers do.

We're straying a little bit off-topic though so I've said enough on that tangent as I've said my piece.

 

[nwdiver]

Too many people these days get the simple fact twisted that banks don't set prices. Buyers and sellers do.

I think real estate is a bit different. I may want to short sell my house but if I have a mortgage the bank isn't gonna let me sell the house for less than it's 'worth' if I owe more. The buyer will obviously be super-eager to buy a cheap house. Conversely a buyer may want to pay above market rates to get a house he REALLY wants but the bank may not be willing to provide a loan at an above market price. So in many ways the banks through appraisers set the price....

 

[ohmman]

Those of us who rely on a well for our water supply appreciate having Powerwalls as well.

I think real estate is a bit different.

For sure, but there's no such thing as a free market anyway. Even in the equities market, short selling has significant limits. There are always artificial pressures that skew "fair" pricing in any market.

 

[Redhill_qik]

I think real estate is a bit different. I may want to short sell my house but if I have a mortgage the bank isn't gonna let me sell the house for less than it's 'worth' if I owe more. The buyer will obviously be super-eager to buy a cheap house. Conversely a buyer may want to pay above market rates to get a house he REALLY wants but the bank may not be willing to provide a loan at an above market price. So in many ways the banks through appraisers set the price....

The bank doesn't care how much you sell the house for so long as the remaining principal is paid in full. If you want to sell it for $100,000 less than the market and $50,000 less than the current mortgage you can do so, but you have to come with that $50,000 to satisfy your loan for the bank to release their lien on the property and allow the transfer to happen.

If solar is a desired feature by buyers than it will show through in the comparable sales that the appraiser is using. This is easier in planned development communities where there is little difference between houses and if the same floorplan consistently sells for $30,000 more with solar than without it would be factored into the appraisal.

 

[nwdiver]

The bank doesn't care how much you sell the house for so long as the remaining principal is paid in full.

Precisely.... if you need a loan for your house the bank determines how much of a loan they're willing to provide based on what they deem the value of the house to be. Until most people are paying cash (unlikely) the banks de-facto determine the value of homes.

 

[Laketime]

Precisely.... if you need a loan for your house the bank determines how much of a loan they're willing to provide based on what they deem the value of the house to be. Until most people are paying cash (unlikely) the banks de-facto determine the value of homes.

No, the bank only determines what the maximum they will lend on the property. If you wish to spend more money than their appraisal then you just put more money down.

 

[nwdiver]

If you wish to spend more money than their appraisal then you just put more money down.

Most people don't have $400 to spend... how often do you think that happens? Hence 'de-facto'....

A friend sold his home recently. The buyer actually DID want to pay more but he was completely ham-strung by the bank because he's an American and spends every hot $ that goes into his pocket. This 'Merca... we don't save $$$.... we SPEND it!!! ye-haw!!!

 

[Laketime]

Most people don't have $400 to spend... how often do you think that happens? Hence 'de-facto'....

A friend sold his home recently. The buyer actually DID want to pay more but he was completely ham-strung by the bank because he's an American and spends every hot $ that goes into his pocket. This 'Merca... we don't save $$$.... we SPEND it!!! ye-haw!!!

The average LTV in California as an example is 66% which means there is plenty of gap. Not everyone buying a house is broke...

 

[jboy210]

The average LTV in California as an example is 66% which means there is plenty of gap. Not everyone buying a house is broke...

Yep. That is why houses in the Bay Area listed for 1.5M go for 1.8M with multiple offers. In my neighborhood, most houses sell via pocket listings and the only time you know they are sold is when they put the broker's sign up with the "Sold" sign already on top.