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.
Florida Solar Incentives
Florida is the third best state for solar in the U.S. 1
Florida solar panel price drop over the last five years. 1
Florida is the third-highest producer of carbon dioxide (CO₂) emissions in the nation. 2
With 237 sunny days per year in Florida on average 3. it’s easy to see why they call it the Sunshine State. This is just one of the many reasons that Floridians decide to go solar to create and store their own renewable energy at home. Florida also offers great incentives that could help you make the switch to solar for less.
Sunrun is the leading residential solar and energy storage company. 4 We work to ensure you can gain energy independence, get protection during outages, and reduce your carbon footprint while enjoying the benefits of Florida’s solar incentives.
Inflation Reduction Act (IRA)
Qualified homeowners with home solar could be eligible for a tax credit of up to 30% against the cost of the system.
Florida Solar System Property Tax Exemption
Property tax exemption on the added home value from the rooftop solar system. 6
Home Solar System State Sales Tax Exemption
6% home solar system state sales tax exemption. 7,8
Florida Solar System Property Tax Exemption
Add a new photovoltaic (PV) system to your Florida home and your property taxes won’t go up, thanks to the state’s Property Tax Abatement for Renewable Energy Property incentive. 6
Installing a solar energy system could also help you build home value. Approximate solar home value increase in Florida: 4% 10
Home Solar System State Sales Tax Exemption
When you buy a new rooftop solar system in Florida, you won’t pay any state sales tax. 7 The exemption is for 100% of the state sales tax of a new home solar installation, and it could save you 6% right off the bat. 8
Now’s a Great Time to Create and Store Your Own Solar Energy in Florida
Going solar means you may qualify for Florida’s state and federal incentives. Our solar and backup energy plans in the State of Florida start at down. What’s more, Duke Energy, Florida Power Light (FPL), and Tampa Electric Company (TECO) offer net energy metering (NEM) programs that could let you earn bill credits for the excess solar power you create and send to the grid. 11,12,13 Net metering in Florida could help you save money on your future electricity bills, which means you can worry less about the cost of air conditioning and your water heater.
It could be cost-effective to team up with a Florida solar company like Sunrun. In fact, we’re one of the best solar installers in Florida. Discover if our solar and storage solutions are a good fit for your energy needs.
Customer’s ability to monetize rebates, incentives and tax credits depends on several factors, including, without limitation, continued state subsidization of these policies, the applicable Sunrun product type and whether a customer purchases or leases a home solar system from Sunrun.
We recommend contacting a tax professional to most accurately determine the impact tax credits may have on your federal taxes.
Am I eligible to claim the federal solar tax credit?
You might be eligible for this tax credit if you meet the following criteria:
- Your solar PV system was installed between January 1, 2017, and December 31, 2034.
- The solar PV system is located at a residence of yours in the United States.
- Either:
- You own the solar PV system (i.e., you purchased it with cash or through financing but you are neither leasing the system nor nor paying a solar company to purchase the electricity generated by the system).
- Or, you purchased an interest in an off-site community solar project, if the electricity generated is credited against, and does not exceed, your home’s electricity consumption. Notes: the IRS issued a statement (see link above) allowing a particular taxpayer to claim a tax credit for purchasing an interest in an off-site community solar project. However, this document, known as a private letter ruling or PLR, may not be relied on as precedent by other taxpayers. Also, you would not qualify if you only purchase the electricity from a community solar project.
What expenses are included?
The following expenses are included:
- Solar PV panels or PV cells (including those used to power an attic fan, but not the fan itself)
- Contractor labor costs for onsite preparation, assembly, or original installation, including permitting fees, inspection costs, and developer fees
- Balance-of-system equipment, including wiring, inverters, and mounting equipment
- Energy storage devices that have a capacity rating of 3 kilowatt-hours (kWh) or greater (for systems installed after December 31, 2022). If the storage is installed in a subsequent tax year to when the solar energy system is installed it is still eligible, however, the energy storage devices are still subject to the installation date requirements). Note: A private letter ruling may not be relied on as precedent by other taxpayers.
- Sales taxes on eligible expenses
How do other incentives I receive affect the federal tax credit?
For current information on incentives, including incentive-specific contact information, visit the Database of State Incentives for Renewables and Efficiency website.
Rebate from My Electric Utility to Install Solar
Under most circumstances, subsidies provided by your utility to you to install a solar PV system are excluded from income taxes through an exemption in federal law. When this is the case, the utility rebate for installing solar is subtracted from your system costs before you calculate your tax credit. For example, if your solar PV system installed in 2022 cost 18,000, and your utility gave you a one-time rebate of 450,000 for installing the system, your tax credit would be calculated as follows :
However, payments from a public utility to compensate for excess generated electricity not consumed by the taxpayer but delivered to the utility’s electrical grid (for example, net metering credits) are not subsidies for installing qualifying property and do not affect the taxpayer’s credit qualification or amounts.
Payment for Renewable Energy Certificates
When your utility, or other buyer, gives you cash or an incentive in exchange for renewable energy certificates or other environmental attributes of the electricity generated (either upfront or over time), the payment likely will be considered taxable income. If that is the case, the payment will increase your gross income, but it will not reduce the federal solar tax credit. Note: A private letter ruling may not be relied on as precedent by other taxpayers.
Rebate from My State Government
Unlike utility rebates, rebates from state governments generally do not reduce your federal tax credit. For example, if your solar PV system was installed in 2022, installation costs totaled 18,000, and your state government gave you a one-time rebate of 450,000 for installing the system, your federal tax credit would be calculated as follows :
State Tax Credit
State tax credits for installing solar PV generally do not reduce federal tax credits—and vice versa. However, when you receive a state tax credit, the taxable income you report on your federal taxes may be higher than it otherwise would have been because you now have less state income tax to deduct. (The Tax Cuts and Jobs Act of 2017 placed a 10,000 limit on state and local tax (SALT) deduction through 2025. Therefore, if a homeowner is still paying more than 10,000 in SALT after claiming a state tax credit, the state tax credit benefit would not effectively be reduced by the federal tax rate, as it would not impact federal taxes (due to the SALT limit).) The end result of claiming a state tax credit is that the amount of the state tax credit is effectively taxed at the federal tax level.
Illinois Solar Incentives are Some of the Best in the Country!
With our multi-state background and more than 2,500 installations to date across all locations, we’re well-informed on the benefits of solar power upgrades, from the federal tax incentives to Solar Renewable Energy Credit (SRECs) through the Illinois Shines Program. Here’s an overview of the benefits for homeowners and businesses:
- Federal Solar Tax Credit — Also known as the Solar Investment Tax Credit, provides a federal tax credit equal to 30% of the total cost of solar panel installation and battery storage. Any remaining balance can be rolled over to the following year, and there is no cap on the amount of the credit.
- Illinois State Property Tax Exemption for Solar – Provides an automatic tax exemption and you don’t have to apply for it. When the local tax assessor is determining your tax-assessed value of your property, they will simply not include the value of your solar power system as part of the value.
- Illinois Solar Net Metering – Whether you’re an Ameren or ComEd utility customer, you can benefit from net metering. This means you’ll receive a credit on your energy bill for all the excess energy your solar energy system generates and sends back to the grid, helping you to offset your electricity bills with solar. In Illinois all utility companies participate and offers the full retail rate for excess solar energy.
- ComEd Commercial Solar Rebate Program – Offers up to 250 per kilowatt for systems under 5,000kW.
- Illinois Shines — This state program pays solar customers for energy produced. Payments continue over the life of the solar installation as long as it is producing power and on average residential solar energy systems could see 10,000 or more in savings.