Tesla will buy the solar panel maker SolarCity Corp. in an all-stock deal worth around $2.6 billion.
The deal must still be approved by the government and shareholders at both companies. It’s expected to close in the fourth quarter if it goes through.
Tesla, a 13-year-old maker of electric cars and energy storage systems, said Monday that the tie-up would create a one-stop shop for cleaner energy. With one service call, customers could get their solar panels installed and connected to Tesla’s Powerwall storage unit, which preserves energy for later use. Users could also get the system hooked up to chargers for one of Tesla’s vehicles.
“Musk, the chairman and biggest shareholder of both companies, during a conference call.
But some have questioned the wisdom of the deal, which combines two money-losing companies that already have a lot on their plates. Tesla is working feverishly on its new, lower-cost Model 3 sedan, which is due out by the end of next year, and Musk recently said the company is also working on electric buses and semi-trucks. And SolarCity said Monday that it experienced lower-than-expected residential bookings in the first half of the year, so it’s reducing its full-year guidance for megawatts installed to a range of 900 to 1,000 megawatts. Its previous outlook had been for 1,000 to 1,100 megawatts.
Others have questioned the conflicts of interest in the deal. Musk owns a 26 percent stake in Tesla Motors Inc., based in Palo Alto, California, and a 22.5 percent stake in SolarCity, which is based in nearby San Mateo, California. Musk’s cousin, Lyndon Rive, runs SolarCity.
SolarCity’s stock slid more than 6 percent to $25.07 in early trading Monday. Tesla’s shares fell 2 percent to $231.01.
But Musk said the companies have a lot of synergies that they can’t take advantage of unless they’re combined.
“The point of the merger is to get rid of the conflicts,” he said. “Until then it’s very limited what we can do unless we are one company.”
Musk said he had no role in establishing the value of the deal.
“I know about as much as you do about how this price was obtained,” he said.
Solar power is one DIY energy resource more and more people are considering. They are looking for ways to cut energy costs, and harnessing the sun’s power seems like an obvious choice. But before you start adding solar cells to your home, it’s important to consider the building’s location.
Look at Sunlight
When thinking about adding solar energy to your home, the first factor to consider is the sun itself. It means knowing how much sunlight hits the region and your property. If you live in a higher altitude or desert area, this will be easier to achieve. For those individuals who live in other areas of the country, how bright the sun is at midday is something to watch.
What Type of Sun Is Required
If your house only sits in direct sunlight for a few hours a day, you may want to rethink solar energy for your house. The reason is because solar energy requires a certain amount of bright, full, shadow-free sunlight to create enough electricity to be worth the effort and expense. If it’s often cloudy, there may not be enough power available to harvest the energy and convert it into electricity.
Don’t Forget About Shade
There are times when we like shade, especially when we’re in it. However, solar panels aren’t so fond of shade because this lowers the voltage output. Even a small amount of shade will dramatically change the output of energy. While the sun is a powerful DIY energy source, the amount of available power depends on where your home is located.
It’s important to remember that day shadows will take place, especially later or earlier during the day. Those times shouldn’t be a concern because the sun remains at an awkward angle. This means power is limited anyway and isn’t really being generated. It’s more important to avoid shadows from 10 a.m. to 3 p.m., specifically during midday hours. This is when the sun should be directly over the building.
Angle Toward the Sun
Whenever you use the sun for a DIY energy source, the solar panels need to be put on mounts that are focused on the sun. When it’s angled toward the sun, it produces the most energy production. It also helps if the angle can be adjusted throughout the year, as light changes each season. Then make sure to maintain the solar panels, so you receive maximum DIY energy amounts.