Some people think SolarCity is doing terribly because they're losing so much money. Actually them losing money is an incredibly great sign for the long run (assuming they don't run out of money - which Elon won't let happen).
Here's how their business model works:
- They will install solar panels on your house for free (or cheaper than the full cost).
- You pay them a much lower rate than what the public utility company charges for the electricity generated from those solar panels.
- You save tens of thousands of dollars and lower your carbon footprint by hundreds of thousands of pounds of CO2 over 20-30 years.
- They lose a ton of money installing those expensive panels but make a TON of money in the long run selling you that electricity that is generated for next to nothing.
So as you can see, SolarCity losing money is actually a good thing because it means they're making so many damn sales that in 10 years they're going to be reaping the profits from those sales like crazy.
Here's how their business model works:
- They will install solar panels on your house for free (or cheaper than the full cost).
- You pay them a much lower rate than what the public utility company charges for the electricity generated from those solar panels.
- You save tens of thousands of dollars and lower your carbon footprint by hundreds of thousands of pounds of CO2 over 20-30 years.
- They lose a ton of money installing those expensive panels but make a TON of money in the long run selling you that electricity that is generated for next to nothing.
So as you can see, SolarCity losing money is actually a good thing because it means they're making so many damn sales that in 10 years they're going to be reaping the profits from those sales like crazy.