Tesla Settles Class-Action Lawsuit Over Solar Roof Price Hikes

Tesla’s highly anticipated Solar Roof has fallen short of expectations, with only 3,000 U.S. homes fitted with the panels over the past seven years. The company has now agreed to pay $6 million to settle a class-action lawsuit regarding unexpected price hikes made to the solar system.

The Tesla Solar Roof was launched by Elon Musk to much excitement, and many customers signed contracts with the company to have the panels installed. However, in April 2021, Tesla announced significant price increases that existing customers would have to pay if they wanted the panels installed. This sudden change left customers like Matthew Amans shocked when his Solar Roof bill jumped from approximately $72,000 to a staggering $146,000.

According to CNBC, Tesla went on to increase prices for solar installations two more times in 2021. Additionally, the company made it mandatory for customers to order the Powerwall storage system alongside the Solar Roof.

The recently amended class-action settlement agreement has revealed that a total of 8,636 customers were affected by these sudden price hikes. Out of these customers, over 6,300 canceled their contracts after the prices rose. The filing also noted that Tesla completed 1,656 contracts at the original quoted price and that another 57 customers will have their Solar Roof systems installed at the original price.

The settlement amount totals $6,080,000. Of this sum, $863,600 will be allocated to an automatic payment fund, $2,220,000 will go towards a new contract roof installation fund, and $1,406,400 will be allocated to an out-of-pocket loss fund.

Despite the controversy surrounding the Solar Roof price hikes, Tesla’s overall solar deployments have seen growth. In the first quarter of 2023, Tesla deployed a total of 67 MW of solar panels and solar roof tiles. This represents a 40% increase compared to the first quarter of 2022, where demand dropped by nearly half from 2021.

The settlement of the class-action lawsuit is a significant step for Tesla in resolving the issues surrounding the Solar Roof price increases. It demonstrates the company’s willingness to address customer concerns and rectify any potential damages caused by unexpected changes in pricing.

For customers who had their contracts canceled or faced substantial price increases, the settlement provides some compensation. The automatic payment fund will ensure that affected customers receive financial restitution for the inconvenience and unexpected costs they incurred.

Additionally, the new contract roof installation fund will allow customers who canceled their contracts to potentially have their Solar Roof systems installed at a later date. This fund aims to provide an opportunity for those who were initially interested in the Solar Roof but were deterred by the price hikes to still benefit from the innovative technology.

Tesla’s commitment to renewable energy solutions remains strong, despite the setbacks with the Solar Roof. The company continues to invest in solar deployments and has seen growth in this sector. The increase in solar panel and solar roof tile installations in the first quarter of 2023 indicates that there is still demand for Tesla’s solar products.

In conclusion, Tesla’s settlement of the class-action lawsuit over Solar Roof price hikes is a step towards resolving customer grievances. The company’s willingness to compensate affected customers and provide opportunities for future installations demonstrates its commitment to customer satisfaction. While the Solar Roof may not have lived up to initial expectations, Tesla’s overall solar deployments show promise for the future of renewable energy solutions.