Elon Musk has already suggested that the current power issues in California, related to the management of power lines to prevent fires, were a good motivation to upgrade to one of their solar electricity solutions and become independent from the increasingly unreliable grid.
Now Musk and Tesla is putting their money where their mouth is by offering a $1000 discount if you are in an area affected by the PGE-related power outages.
If you’re directly affected by wildfire power outages, Tesla is reducing Solar+Powerwall prices by $1000 as of today
— Elon Musk (@elonmusk) October 28, 2019
While a $1000 discount looks like a large amount, a medium Tesla solution starts at $24,999, but Musk notes that their margins are small on this product and that the discount was therefore quite significant.
PGE, the power company which serves San Francisco, has been turning off the electricity supply to homes in windy periods in the area to prevent forest fires, after a major fire last year caused by their power lines caused billions in damage and killed scores of people.
The company was meant to prevent this by clearing the brush around their 27,000 miles of power lines, but so far managed only 7000.
While Musk may appear to be capitalizing on a short term situation, Bill Johnson, the CEO of Pacific Gas & Electric, recently admitted that it could take 10 years before such outages were no longer very common.
Musk also noted that the money is an investment, saying homes with solar tended to sell for 4% more than their neighbours without.
If you find Musk’s logic sound, check our Musk’s solution here.