Tesla vs Sunrun: Who Is Our Pick?
Tesla vs Sunrun, which solar panel provider is better? Let’s take an in-depth look.
As the world continues to experience the effects of climate change on a personal and collective level, the importance of switching to renewable energy sources cannot be overstated. Solar energy, in particular, has proven to be a viable and sustainable alternative to fossil fuels. It is environmentally friendly and has become a viable long-term investment—homeowners and business owners can save money on their energy bills with these systems.
However, choosing the right solar installer can be a daunting task. With so many providers advertising their offerings, it can be difficult to parse which is the best to partner with. It is essential to find an installer with a proven track record of delivering quality installations and top-notch customer service.
Recently, we compared Sunrun and SunPower. In this article, we compare two household names in the solar industry: Tesla and Sunrun. After this thorough breakdown, you can make an informed decision on which provider to choose.
First, let’s take a close look at each player.
At a Glance: Sunrun
Since its humble beginning in 2007 in San Francisco, California, Sunrun has become one of the leading solar companies in the country. It has helped over 500,000 households in the United States switch to solar power.
Known for pioneering the solar-as-a-service business model, Sunrun allows homeowners to lease solar panels for a fixed monthly fee. This program has made these cutting-edge systems more accessible for many people who might not have been able to afford them otherwise.
While Sunrun does not produce its own solar panels, it sources its materials from well-established third-party suppliers. Sunrun even sells the Tesla Powerwall through its Sunrun Brightbox program.
In addition to residential solar systems, Sunrun also offers solar battery storage. It also provides EV charging stations specifically designed for the Ford F-150 Lightning, an all-electric pickup truck produced by the Ford Motor Company.
Sunrun’s acquisition of Vivint—another major solar installer—in 2020 further solidified its position as a leader in the industry.
At a Glance: Tesla
Tesla Energy, formerly known as SolarCity, is a subsidiary of Tesla, Inc., that specializes in renewable energy solutions, including solar panels and solar roofs. It also offers battery storage solutions through Tesla Powerwall.
Need we tell you about how the brand is synonymous with Elon Musk?
Tesla’s solar products are also known for their sleek, modern designs. Its solar roofs, for example, consist of individual solar tiles that resemble traditional roof shingles made with slate or clay.
A unique element of Tesla’s solar business model is its reliance on certified third-party installers to handle all of its solar installations. While Tesla does not quite have full customization for its solar panel systems, it offers a range of capacities from 4.8 kW to 19.2 kW.
Tesla has an online-only sales strategy for dealers and end-users. Customers can browse and purchase Tesla’s solar panels through the company’s website without needing in-person consultations or salespeople.
Tesla vs Sunrun: Warranty
Tesla and Sunrun offer impressive warranty coverage for their solar panel systems, although their specifics differ slightly.
Sunrun offers a 25-year performance warranty for their systems, which covers any drop in energy production below the guaranteed level. They also provide a 10-year roof protection warranty, ensuring roof penetrations remain watertight for a decade.
Additionally, Sunrun offers a comprehensive bumper-to-bumper warranty that covers all parts and labor, with free equipment replacement and system repairs.
As for the panels themselves, Sunrun’s warranty will depend on the manufacturers of the panels used in the installation. Again, this is because the company sources its panels from third parties.
That said, Sunrun carefully selects and sources its panels from highly regarded suppliers to ensure that customers receive top-of-the-line products.
On the other hand, Tesla produces its own solar panels, so they have control over the design, manufacturing, and troubleshooting processes. This may give Tesla an edge in terms of quality control and consistency across its solar products.
Tesla provides a 25-year power production warranty, guaranteeing that their solar panels will maintain 80% of their nameplate power capacity after 25 years. This also covers any defects in panel design and materials.
Additionally, Tesla offers a 10-year workmanship warranty, ensuring that any issues arising from installation or construction are covered.
Our Verdict: Either one is good and promises to be reliable for years to come.
How rooftop solar got big: Sunrun hits milestone of 5 gigawatts installed
Canary talks to Sunrun CEO Mary Powell on the U.S. home-solar leader’s first 15 years, its Ford electric truck partnership, and what comes next.
Sunrun, the nation’s largest rooftop solar company, just turned 15. When it started, solar installations were costly and rare. Many venture-backed startups were experimenting with new financing structures and other techniques to make solar more accessible, but many of those companies have since collapsed.
Sunrun never collapsed; instead, it grew steadily through the ups and downs of the industry’s famously volatile “ solar coaster.” On Tuesday, the company announced that it has installed a total of 5 gigawatts of solar capacity for 700. 000 customers, proof that small, household-level clean energy installations can add up to substantial capacity.
Canary Media’s Julian Spector called Sunrun CEO Mary Powell to unpack what those numbers mean and learn more about how Sunrun has navigated market disruptions from Covid to unexpected federal intervention. The conversation has been edited for brevity and clarity.
Julian Spector: You’ve just announced that Sunrun has, in its 15 years, installed 5 gigawatts of solar capacity and reached 700. 000 customers. What does that mean for the broader effort to decarbonize American society?
Mary Powell: The numbers send a message that Americans overwhelmingly want to move toward solar energy. And in many ways, I am heartened by what we’re seeing in terms of customers’ interest in solar energy, particularly now that we pair it with storage — we now have 37. 000 home battery systems installed, and we’ve seen 100 % growth in battery adoption year-over-year.
Working together, we can really create the grid of the future — one that is more affordable, resilient and climate-hardy for all. So yes, we’re really excited by what we’ve accomplished in our first 15 years, and more bullish than ever on the need to dramatically accelerate this customer-led revolution as we think about our next 15 years.
Spector: The rooftop solar industry has long grappled with the costs of customer acquisition — how much money you have to spend to get someone to sign up for such a big commitment. If you’re projecting 25 % growth in installations this year, does that mean you’ve solved the customer-acquisition problem?
Powell: It doesn’t mean that overnight the way we go to market radically changes. But it does say that, over time, yes, we can go to market in ways that are increasingly cost-effective for the customers we serve. We’re very heartened by what we’ll be able to accomplish from an e-commerce perspective, and we do expect that there will be an increase in demand.
While this customer-led revolution accelerates, policy is also important, and it can change quickly and send messages to customers that can alter their behavior. But right now, we are accelerating [toward] a tipping point that will bring down costs over time.
Spector: This spring, the Commerce Department launched its tariff inquiry on four Southeast Asian countries that supply the majority of U.S. solar panel imports. Did that federal action affect your ability to do business this year?
Powell: That investigation was not needed and was not helpful to the industry. At the same time, at Sunrun, we work to position ourselves to be in a very strong place in terms of inventory. And we have been managing these types of headwinds for well over a year from a supply-chain perspective, so we feel like we are in good shape relative to that investigation and just hope that it is brought to a conclusion very soon.
And the bigger picture here: We think any use of forced labor [in the solar supply chain in China’s Xinjiang province] is abhorrent. We’ve been incredibly proactive on this issue. We partnered with [the Solar Energy Industries Association] immediately when the first allegations arose in 2020 and helped them develop their traceability protocol, and we were one of the first companies to implement it. We signed the forced-labor prevention pledge.
Spector: Can you say for certain that no panels that Sunrun installs contain inputs from Xinjiang?
Get Caught Up
Powell: We welcome more production and manufacturing, wherever it can make sense. And in fact, I just spent time last week with clean-energy leaders from all over the country, and I was very heartened by some of the work going on in a couple of areas to, where viable, bring manufacturing into the U.S.
Spector: The White House ultimately decided to freeze the implementation of tariffs on those four Asian countries for the next two years while the inquiry proceeds. Are you happy with that resolution?
Powell: Directionally, that was a positive outcome.
Spector: Let’s turn to your preferred installer partnership with Ford for its F- 150 Lightning electric truck. If someone spends 3. 900 on this special bidirectional charging equipment, they can use the truck as a backup power source. Are customers taking you up on that?
Powell: It’s early to report numbers, and at the next earnings call I will be reporting actual numbers of what we’re seeing. But yes, I expect that a number of customers are going to want to have that capability to back up their home.
At the same time, I think we are going to see a lot of customers who actually want separate independent energy storage in their home and solar, and probably our [Smart electric] panel that we’re partnering on with Span. At the end of the day, that truly provides energy independence, which is what so many Americans want.
Spector: Traditional battery packs for your house might cost 10. 000 or more. Now you can get even bigger battery capacity from your truck for a few thousand bucks. Does that undercut the sales case for your stand-alone batteries?
Powell: Some customers will say, “ I have my Ford; I’ll use that as my energy storage resource.” But a lot of customers want it all.
I spend a lot of time in California now, and I have already experienced multiday outages because of [wildfire-prevention power shut-offs initiated by utilities]. Customers want to be able to drive their EV. and if that event goes on for a week, a lot of people are going to want to have both [the truck and a home solar-plus-storage system]. I think a lot of it will depend on where folks live. But I definitely expect many customers to still want solar-plus-storage, plus their Ford F- 150 and the ability to use it as a backup resource if they want to.
Spector: Many solar companies tried to find “ synergies” with other sales channels — like Smart homes merging with solar or traditional utilities trying to layer on solar sales. But a lot of those didn’t really work. Do you have evidence that this Ford partnership is different?
Powell: First of all, this is huge: It’s America’s bestselling vehicle for the last 40 years that has now gone electric. That is such a game-changer.
But yes, what I have seen, anecdotally and statistically, is there is a direct correlation. As customers across America move to heat pumps and other forms of electrification, you’re going to see more and more drive to have more affordable energy. Right now, we are seeing double-digit-percentage utility rate increases all around us; the latest energy inflation number was 12 %. People are paying more at the pump; they’re paying more to their utility. It is completely logical that it is going to accelerate this movement toward clean energy independence. Even if you end up only being able to generate half the [electricity] you need for your life, aren’t you going to want that half to be a lot cheaper than the other sources you’re paying for? I would say yes. This is all going to drive greater demand for solar energy.
Spector: Canary Media recently did a special themed week on recycling renewables, and we covered Solarcycle, a startup trying to radically improve recycling of solar panels. Sunrun is the first named customer working with them. What’s your strategy for end-of-life solar panels and batteries?
Powell: We’re in the business of sustainability, so we’re constantly exploring how we can be a part of the next innovation that makes things more sustainable. I was excited when the team sealed that one. It is very intertwined with who we are as a company and how we continue to grow and accelerate what we do to have a positive impact on society.
Spector: To close, we’ve seen plenty of large, well-funded national solar companies rise and fall over time. Here you are 15 years later, seemingly stronger than ever. Why do you think Sunrun succeeded where many others tried and failed?
Powell: It’s not easy, being an innovator and delivering something that you know can be amazing for customers and the planet but isn’t yet mainstream. So much of the [company] culture that I love came directly from Lynn [Jurich] as CEO and our co-founder Ed [Fenster], which is just this intense grit. Like, never surrender — this incredible passion for the cause, for the customers, for the planet.
At a Glance: Sunrun
Specializing in residential solar and energy storage solutions, Sunrun’s primary goal is to make the transition to solar as easy and stress-free as possible for homeowners.
Sunrun’s Solar Advisors are experts in the field and provide one-on-one consultations to guide you through your solar adoption journey. They provide daily system monitoring, free maintenance, repairs, and comprehensive insurance throughout the life of your solar system.
Sunrun’s proprietary software significantly influences its custom solar design services. It generates a detailed analysis of your home’s energy usage and production potential, so the company can design a system that maximizes your energy savings.
Homeowners get bumper-to-bumper warranty that covers their solar systems from top to bottom, including all parts and labor, and free equipment replacement and system repairs. It also includes a guarantee that roof penetrations are watertight for ten years.
This guarantee provides much-needed peace of mind and assurance that the solar system will operate at peak performance.
Sunrun vs SunPower: Solar Power
Let’s look at a few solar panel elements where Sunrun vs Sunpower can be compared.
Sunrun sources their solar panels from third-party suppliers. In contrast, SunPower has partnered with Maxeon Solar Technologies—a reputable manufacturer that produces high-quality solar panels with a proven track record of durability and efficiency.
SunPower offers its own Maxeon Solar line, with A Series, X Series, E Series, and P Series.
Installation Costs and Financing
While Sunrun’s average installation cost is around 3.93 per watt, the figure stands at 4.60 for SunPower. It’s worth noting that the exact installation costs vary depending on various factors, such as roof size, location, and additional services required. For some more perspective, NRG Clean Power typically completes similar projects for right around 3.00/watt. Get a price here.
When it comes to financing options, Sunrun offers lease, loan, and PACE programs, while SunPower offers only loan or mortgage options.
PACE (Property Assessed Clean Energy) is a financing program that helps homeowners and commercial property owners pay for energy-efficient upgrades, such as solar panels, through a property tax assessment. Offered by many local and state governments, the PACE program lends funds for these upgrades, which are then repaid over time through an assessment of their property tax bill.
Do Solar Panels Work in Rain and Snow?
If your winters look cloudy, rainy, snowy, or all of the above, not to worry. Solar panels can still generate electricity under these conditions, too. While solar panels are most productive in direct sunlight, they can still use diffuse or indirect sunlight (radiation) to generate energy. 8
Even though energy production decreases with increasingly dense Cloud cover, panels continue working to a greater capacity than one may expect. Rain also helps wash away dust on panels to keep them operating efficiently. 9
During times of heavy snow accumulation, solar panels’ dark, reflective glass accelerates snow melt so that it slides off before it can hamper performance. Rooftop solar panels are also typically tilted up at 30 to 45 degrees, which keeps snow from accumulating, but only to a point. 11 In comparison, a light dusting of snow is likely to blow off or disappear rapidly.
In fact, on cold, clear days, snow from the ground can reflect extra sunlight onto your solar panels like a mirror. This “albedo effect” enables panels to produce even more electricity in the cold. 10
If your panels require more than a routine hosing down or require you to get on the roof, we highly urge you to contact a trusted solar provider to receive professional assistance.
Three Tips on Maintaining Solar Panel Efficiency
While solar panels generally require little maintenance, it’s still important to inspect your solar panels from time to time and monitor their performance. Here are a few tips to ensure your solar installation is working at its full capacity: 12
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Keep your panels clear of debris and other damaging materials. While rain is generally sufficient to keep your panels clean, you may want to consider a professional cleaning if you ever notice your panels aren’t working at their full capacity.
Energy Efficiency vs. Cost Efficiency
While solar panel efficiency is important to consider, cost efficiency will likely be the most relevant factor in your search for a home solar panel system. Sunrun ensures you have a cost-efficient system in three ways:
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We only recommend solar if it has the potential to save you money. Sunrun will help you determine whether a solar panel system has the potential to cut the cost of your current electricity rates. Our easy-to-use Product Selector will ask you for your average monthly electricity bill so our Solar Advisors can determine if solar makes financial sense for you.
Renewable Energy and Efficient Solar Panels for Your Energy Needs
A reputable residential solar company will guarantee reliable solar panel production and dependable customer service for decades to come. With over 20 years of experience, Sunrun is committed to creating a clean energy future for all.
See why over 600,000 Americans across the country have partnered with Sunrun and get a solar consultation today. You can also use our easy Product Selector to get a solar system that’s custom-fit to meet your needs.
- 1. Photovoltaic Energy Factsheet
- 2. Solar Energy Optics: expanding efficiency
- 3. Solar panels are more efficient than you’ve heard. This material could make them even better.
- 4. Solar Performance and Efficiency
- 5. Lifetime of PV Panels
- 6. How Much Do Solar Panels Cost?
- 7. How Does Temperature Affect Solar Panels?
- 8. Direct, Diffuse and Reflected Radiation
- 9. Just a spoonful of solar panel cleaning, helps the revenue go up – the revenue go up!
- 10. Solar Panels Work Great In Snowy Regions, Research Shows
- 11. Let it Snow: How Solar Panels Can Thrive in Winter Weather
- 12. How Much Does It Cost To Clean And Maintain Solar Panels?
- 13. Short-term Energy Outlook
