Auto Company’s Solar Deployments Continue To Decline

Tesla Blames Sustained High Interests & California Situation For Annual Drop In PV Installations In Q3/2023

Auto Company’s Solar Deployments Continue To Decline

Solar deployments for Tesla dropped 48% YoY to 49 MW in Q3/2023. (Photo Credit: TaiyangNews)

  • Tesla’s solar PV deployment rate slowed down further in Q3/2023 with 49 MW of installations 
  • It blames high interest rate environment and end of net metering in California for the slowdown 
  • The management said the focus will be on investments in R&D and capital expenditures for future growth to deal with high interest rates 

US electric vehicles manufacturer and solar installer Tesla’s solar PV deployments continue their downward trajectory, declining almost 50% on a year-on-year (YoY) basis to 49 MW in Q3/2023. 

Compared to 94 MW the company installed a year ago, it has now slid down 48% to 49 MW, blaming the decline on sustained high interest rates and the end of net metering in California. These reasons, it says, have created a downward pressure on solar demand. 

High interest rate environment pulled down the company’s Q2/2023 PV installations as well when it reported 66 MW capacity (see Tesla’s Solar Installations Continue To Drop). 

Within the initial 3 quarters of this year, Tesla’s solar deployments dropped by over 26% to 182 MW, compared with 248 MW it reported in 9M/2022 (see Tesla’s Solar Installations Up 13% YoY In Q3/2022). 

To deal with the high interest rate environment, the management, without specifying solar, stated that it will focus on investments in R&D and capital expenditures for future growth while maintaining positive free cash flow. 

On the other hand, its energy storage business continues to boom as it grew by 90% YoY in the reporting quarter to 4.0 GWh. This is the company’s highest quarterly deployment ever. In the previous quarter, it increased by 222% YoY to 3.7 GWh. 

Thanks to energy storage, energy generation and storage revenues improved 40% YoY, contributing $1.56 billion to group revenues of $23.35 billion that itself grew by 9%. The management stated, “Lastly, with a combined gross profit generation of over $0.5B in Q3, our Energy Generation and Storage business and Services and Other business have become meaningful contributors to our profitability.” 

About The Author

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews. Anu is our solar news whirlwind. At TaiyangNews she covers everything that is of importance in the world of solar power. --Email: [email protected]

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