Tesla to charge ahead and cut solar panel prices to 38% below national average

Tesla is set to announce on Tuesday that it will push ahead and sell solar panels and related equipment at a discount of as much as 38% to the national average, said the New York Times.

The company said it aims to cut prices by standardising systems and requiring customers to order online, the report said.

In its first quarter results, published the week before, the company said there had been a reduction of 36% in solar installations, leading to its decision to roll-out a new price and selling strategy.

In November 2016, the electric car maker bought SolarCity for $2.6bn and began offering solar panels and home battery storage systems to consumers.

Tesla sought to align the products with its aspirational luxury car brand but SolarCity's stated aim was to make the technology accessible to all, which meant that sales had lagged.

Tesla Chief Executive Officer Elon Musk has said selling solar panels and similar tech is a cornerstone of his strategy to sell a fossil-fuel-free lifestyle under the Tesla brand.

Sanjay Shah, who runs Tesla’s solar business and previously worked at Dell and Amazon, reportedly told the NYT that solar companies struggled to make money because they had made buying solar panels too complex.

“We spent hours and hours and days and days on the process,” Mr. Shah said. “It adds cost. It adds time. We needed to have a very streamlined process.”

He said Tesla would now offer systems in increments of only four kilowatts, a measure of how much electricity the panels can generate in ideal conditions, or 12 panels. The average system in the United States can generate about 7.6 kilowatts.

As a result of these changes, Shah said Tesla customers could expect to pay $1.75 to $1.99 per watt, depending on where they live. The current average price is $2.85 per watt, including $1 for permitting and inspections, according to the Solar Energy Industries Association said the NY Times.