Did anyone see the new Solar Roof from Elon Musk?

General Landlording & Rental Properties
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Did anyone see the new Solar Roof from Elon Musk?

Mindy JensenPro Member
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes

Elon Musk has  just announced a new roof that went on sale today. Tesla's new Solar Roof will be available for US delivery in late 2017, and best of all it comes with an Infinity Warranty!

As a homeowner, I want one of these for my own house. Can you imagine not ever having to pay for a roof again? Plus the added benefit of solar energy production! I live in Colorado, where we get 330 days of sunshine every year. That's very little electricity I'm buying...

As a landlord, I want one to make my property more attractive. "Hey, rent from me and pay next to nothing in electric bills!"

As a Tesla shareholder, I can't wait to sell 12 billion of these roofs!

But what I really want to know is what YOU think about this idea? If you're in love with this idea, please share why. If you aren't, I'd like to know why, too.

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
9y

Go to their web site and run the calculator. My house would cost over $70,000. Even after a $21,000 tax credit it would net just $900 in 30 years. That's a savings of $30 a year.

Even if the roof tiles have a lifetime warranty, the system will require maintenance. The batteries alone cost $7000 and probably have to be replaced every 5-10 years. I suspect the sytem would cost at least another 50% in maintenance costs over a 30-year period.

For those that love solar because it saves the world, remember the panels do not grow on trees. They are manufactured in factories using materials dug out if the ground. Everything is transported. Parts wear out and end up in the landfill, particularly the batteries full of hazardous materials.

Maybe they'll sell like hot cakes and the price will drop enough in 10 years to make it worth my while. For now, it's just a cool idea.

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    9y

    I'll be interested to see what these look like in person. In the mid-atlantic we have relatively low utility costs, and due to that solar panels have not caught on in my market. They generally devalue the property by 3-5% here because people care much more about the aesthetics of their home than saving $10 a month off their electric bill. (I literally saw a disclosure form this week that listed average savings of $10 a month on a house in my market with solar panels) 

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  • Kerry BairdPro Member
    Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
    9y

    I am super excited about this product!  

    We were stationed in England for 16 years with the US Air Force, and watched solar panels go up on bungalows all around us.  When we returned to the States, I expected to see solar panels here, too.  I am so surprised at how few solar panels are in place, especially here in Florida.

    2Reply
  • Austin Fruechting
    Investor · Kansas City, MO · Member since 2017 · 791 posts · 1k+ votes
    9y

    I am strongly considering it at my own home when my roof needs replaced in the next few years.  With a 100+ year old home paying zero in utilities will pay back the additional costs in around 5 years and then I'll be saving substantially. 

    It will be interesting to assess the possibility of return on a rental. 

    1Reply
  • Chris MasonPro Member
    Moderator
    Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
    9y

    @Ori Skloot I believe this is in your realm of expertise. 

    1Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    9y

    Go to their web site and run the calculator. My house would cost over $70,000. Even after a $21,000 tax credit it would net just $900 in 30 years. That's a savings of $30 a year.

    Even if the roof tiles have a lifetime warranty, the system will require maintenance. The batteries alone cost $7000 and probably have to be replaced every 5-10 years. I suspect the sytem would cost at least another 50% in maintenance costs over a 30-year period.

    For those that love solar because it saves the world, remember the panels do not grow on trees. They are manufactured in factories using materials dug out if the ground. Everything is transported. Parts wear out and end up in the landfill, particularly the batteries full of hazardous materials.

    Maybe they'll sell like hot cakes and the price will drop enough in 10 years to make it worth my while. For now, it's just a cool idea.

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  • Audrey Ezeh
    Real Estate Investor · Las Cruces, NM · Member since 2016 · 186 posts · 173 votes
    9y

    I love all things Tesla...Models SIIIX, battery, solar roof, model Y upcoming. The stock has made me a lot of money ( it's on a tear right now) but i also believe in the products. If things work out as planned (not in Real estate), I should be trading in my sexy minivan for a Model X in 5 years lol. And yes I would totally consider the roof for a rental if it makes $$$ sense.

    1Reply
  • Curtis J.
    Investor · Lovington, NM · Member since 2016 · 46 posts · 25 votes
    9y
    Audrey Ezeh hello neighbor. We reside in LC half the time. This roof makes absolutely no fiscal sense in our area. A reroof will run roughly 20% or less than what these things cost. Hell its half the cost of the home in most cases. Dang nice cars and hopefully the roofs drop in price soon.
    1Reply
  • Elbert D.
    Real Estate Entrepreneur / Investor · Chicago, IL · Member since 2016 · 688 posts · 367 votes
    9y
    I love Elon musk as an entrepreneur. He strives for greatness and is a true engineer and business man. I have to agree with Nathan Gesner it's just a cool idea for now just like hyper loop. But these are the type of innovations and inventions the world needs in order to get better. I hope all of his products are successful and get better with each iteration.
    1Reply
  • Lorin K.
    Tacoma, WA · Member since 2015 · 141 posts · 29 votes
    9y

    I have watched Elon Musk Documentary. Its amazing how mellow the guy is for taking on some very big risk. He said his car company was one week from going into bankruptcy during the 09 crash..the company was that close to running out of money. He said to the investors he had so much faith in his company..he was willing to put ever bit of her personal income into the company to make it survive. They were convinced and provided him the funding to make the company produce its first cars.

    1Reply
  • Jim Walters
    Rental Property Investor · Conover, OH · Member since 2016 · 55 posts · 48 votes
    9y
    Tesla burns through billions of dollars. The only thing that has allowed them to stay in business is they keep selling more stock. Elon Musk brings up an idea, stock jumps and the company sells another billion dollars in stock. This game won't work forever. So a lifetime warranty may not be for all that long.
    5Reply
  • Mike S.
    Rental Property Investor · Huntsville, AL · Member since 2013 · 419 posts · 323 votes
    9y
    Originally posted by @Jim Walters:

    Tesla burns through billions of dollars. The only thing that has allowed them to stay in business is they keep selling more stock. Elon Musk brings up an idea, stock jumps and the company sells another billion dollars in stock. This game won't work forever.
    So a lifetime warranty may not be for all that long.

     Government subsidies is not a sustainable business model.

    4Reply
  • Audrey Ezeh
    Real Estate Investor · Las Cruces, NM · Member since 2016 · 186 posts · 173 votes
    9y
    Originally posted by @Jim Walters:

    Tesla burns through billions of dollars. The only thing that has allowed them to stay in business is they keep selling more stock. Elon Musk brings up an idea, stock jumps and the company sells another billion dollars in stock. This game won't work forever.
    So a lifetime warranty may not be for all that long.

    ...and that's exactly why TSLA is one of if not the most shorted stock in history! I now take advantage of that sentiment and I ride it to new highs, when the rash of selling inevitably starts, instead of losing dizzying amounts of money, I sell my position and wait for the bottom, buy back in and ride it to the top. I wouldn't recommend it to anyone lol but it has worked tremendously for me. TSLA is not for the faint hearted!

    3Reply
  • Account Closed
    Investor · Denver, CO · Member since 2016 · 736 posts · 582 votes
    9y

    Saw the article on MarketWatch this morning.  Estimated price is $21.85 per sq ft.  For a 1,000 sq ft roof that's $21,850....for the shingles.  Nobody is talking about the components you need to connect the shingles to your electric meter to get that power on the grid.

    It's a bit pricey to me.  With relation to the warranty...my thought was "who cares?".  A new shingle roof is already warranted 35 years.  I'm 45 years old - any roof I replace at this point in my life is more than likely going to outlast me anyway unless it's damaged due to wind or hail in which case the insurance company will take care of it.

    Still doesn't make sense to me.  It might in 5 or 10 years when prices drop....but not yet...

    4Reply
  • Tanya F.
    Rental Property Investor · Madison, WI · Member since 2013 · 629 posts · 339 votes
    9y

    Love the new ideas, always.  I haven't read the specs yet. Sunny Colorado is great for solar.

    The people who are calculating only $10 a month savings either miscalculated, or designed their system incorrectly.   We save much more. We've had just regular (Sharp) panels on a rack on our roof, since 2012.  

    I'd be interested in a cost and performance comparison between these roof tiles and the kind of system we have. Seems like it'd make sense to only do the south facing part of a roof with this product.

    1Reply
  • Kurt Kwart
    Specialist · Atlantic City, NJ · Member since 2013 · 431 posts · 170 votes
    9y
    Originally posted by @Mike S.:
    Originally posted by @Jim Walters:

    Tesla burns through billions of dollars. The only thing that has allowed them to stay in business is they keep selling more stock. Elon Musk brings up an idea, stock jumps and the company sells another billion dollars in stock. This game won't work forever.
    So a lifetime warranty may not be for all that long.

     Government subsidies is not a sustainable business model.

    Somebody tell the fossil fuel industry that gets 4x the subsidies vs renewables. 

    https://www.bloomberg.com/news/articles/2014-11-12/fossil-fuels-with-550-billion-in-subsidy-hurt-renewables

    I have faith Elon can take down the fossil fuel industry. While I'm not comfortable holding a stock that doesn't produce profit, I would never bet against him. He produces the most advanced (by far) autopilot, fastest production car, changed the space travel game and just released solar roofs with lifetime warranties, I'll give him the benefit of the doubt.

    4Reply
  • Jody Powell
    Bend, OR · Member since 2014 · 38 posts · 14 votes
    9y

    As much as I admire Elon (I would love to own a Tesla and am a fanboy of SpaceX), this is just more marketing hype. Solar shingles have been around for years, and the "infinity warranty" is for the tiles as roofing, not the tiles as energy producing modules. That said, I love that his marketing keeps us talking about solar. One day...

    2Reply
  • Andrew Johnson
    Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
    9y
    Mindy Jensen I'm the curmudgeon that will wait until the first 100,000 of these are installed (with battery back-up packs). I will say this, it's one of the very few reasons I haven't looked into solar panels for my primary residence. They can't possibly be as ugly and obtrusive as those! If Tesia cars were any indication they'll pop up on about 30% of roofs where I live. Teslas have grown around me like weeds, weeds irradiated with whatever created the Incredible Hulk 😬
    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Mindy Jensen  I think the cost is such that you probably are only going to see these on high end new construction or those that have high end homes and can easily afford it..  What Tesla compares pricing to is a Slate roof or custom tile roof..

    @Russell Brazil  go to the TESLA.COM site there are pictures they actually look very good.. and will last forever because they are glass they don't dent or wear out.. and they are super light weight so might be some savings in the framing and truss designs.

    @Audrey Ezeh  I bought and S for myself in Sept. and loved it so much I bought an X for my wife for Christmas present.... they are BY FAR the best cars I have ever owned and I have owned them all believe me.  Well as compared to Mercedes, Lexus, Porsche, BMW.... to just plug in an go I have not been to a gas station since.. also we can schedule our charging for late nights so its next to free I think it cost me 3 to 4 bucks to fill up.... And we are grandfathered into the FREE super charger systems I drive all over the country and never pay... plus these cars are very fast and with all the battery weight down low they handle as good as my 911 did.. totally sold.. then the last thing is you just order them on line not the pain of going to the car dealerships.

    Russell I am building a 2 million dollar plus spec in Charleston this year I am going to seriously consider using the tiles for that new build.. Not sure here in Grey Orygun they will be too effective.  All though you know all the nut job greenies we have here LOL

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  • Jean BolgerPro Member
    Aurora, CO · Member since 2012 · 2k+ posts · 1k+ votes
    9y

    So excited. IMHO we are on the verge of a leap in how we deal with energy production in many sectors. There are still plenty of naysayers, but inventive minds like Musk & co have been pushing forward on these technologies for a long time.
    After all, what is ho-hum tech to us today seemed  mindbendingly impossible just a few decades ago.

    1Reply
  • Chris T.
    Investor · Downers Grove, IL · Member since 2015 · 1k+ posts · 955 votes
    9y

    I'm with @Andrew Johnson 

    I don't want to be the early adopters and pay a premium for the product. Like Ed E mention, at it's current costs, the payback period is TOO LONG. It will cost me over $80,000. 

    But someone has to innovate and disrupt the status quo, Might as well be Elon ! 

    Wait a few more years till the prices start coming down. Maybe on my next house! 

    0Reply
  • Carl Schmitt
    CT · Member since 2010 · 135 posts · 100 votes
    9y

    I like the idea and they do look good.  However, they're 2.5-3x the price of a typical asphalt roof.  The "infinite" warranty is on the tile only.  Weatherization and power are only good for 30 years- same as an asphalt shingle.  Not to mention, warranties are only as good as the company backing them.  As others have mentioned, it's tough to grow a business on government subsidies.  When those dry up and the company folds, so does your warranty.  

    1Reply
  • Sid Leibowitz
    Contractor · Glen Cove, NY · Member since 2016 · 209 posts · 89 votes
    9y

    I am a share holder and I understand that Musk is hot for now. I thik that he is very inventive and has investors that think he is brilliant After all SpaceX H is a space cadet and a successful one at that.

    Just watch the stock. Its a mover for sure. He is a golden boy. As for the the affordability and ROI of his solar panel idea? I think that this requires some more individual time and analyzation to see if it makes sense for everyone. You can be sure that the tiles are not cheap and they will probably need cleaning and maintenance on a schedule and that you may have better ROI in Florida Vs. New York. We would all have to do some more homework on this and re convene after some more research.

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  • Theresa White
    Xenia, OH · Member since 2016 · 41 posts · 25 votes
    9y

    Fan of products or not, the Elon Musk biography from a couple years ago was excellent!  Listening via Audible at 1.25x made a miserable road trip go by in a jiffy.  Business lessons, life lessons, psychology lessons, cool tech stuff...all wrapped up.  The guy really and truly believes his work is changing the world and his goal is to afford humanity options.  (Sidenote, NatGeo also put out a docu-drama called Mars that was really interesting.  Touches on the whole "get to Mars" goal and having just listened to that biography, I think I had a lot more context to enjoy the docu-drama.)

    Hubby and I are due for roof in a few years, and have already considered solar, so we will definitely look at the numbers closely. 

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  • John Woodrich
    Flipper/Rehabber · Minneapolis, MN · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    In MN most houses have asphalt shingles which typically come with a 25-35 year warranty.  In all reality, most roofs have storm damage and get replaced every 5-15 years so the insurance companies replace more roofs than anyone.  The lifetime warranty would not hold any value.  If it is true that it is only the tiles the system components could really add up.

    I would be cautious for anyone wanting to save money with solar, the payback is typically a lot longer than advertised.  I can see people who don't worry about money driving their Tesla into a house with this roof but I can't see it catching on, the price is way too expensive.  

    0Reply
  • Raymond E. Hopkins
    Rental Property Investor · Meeker, OK · Member since 2017 · 48 posts · 26 votes
    9y

    Mindy,

    I am interested as a home owner and landlord, but I do not think I would consider adding the solar panels until I was in need of a roof.  It seems to be a pricey set up, but if the electric companies were going to pay you for any unused electricity it could drastically reduce the expense over time!

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