Tesla plans to announce that it has started selling its solar panels and related equipment for up to 38% less than the national average price by standardizing systems. Customers are going to need to order the equipment online and Tesla will be offering systems only in 4 kilowatt increments or 12 panels.

The drop in price is stunning: not unlike the auto business, the solar business is a capital intensive industry with tight margins, where companies perform intense analysis to find even the smallest synergies and cut off pennies per watt in cost. To undercut the national average by 38% is a nearly unthinkable strategy, assuming Tesla still strives to make money from this segment.