The solar company owned by Tesla is SolarCity, which Tesla acquired in November 2016 for approximately $2.6 billion in an all-stock deal. SolarCity was founded in 2006 by Elon Musk's cousins Lyndon and Peter Rive, with Musk as chairman. After the acquisition, Tesla discontinued the SolarCity brand and now sells solar products directly under the Tesla name.
TL;DR: Tesla acquired SolarCity in November 2016 for approximately $2.6 billion in an all-stock deal, then killed the SolarCity brand entirely by 2019. Today Tesla sells two solar products: conventional solar panels and the Tesla Solar Roof, tempered glass tiles with integrated cells that cost $40,000 to $80,000 depending on roof size. Both products pair with the Powerwall 3 battery (13.5 kWh). Tesla's panel pricing sits near the national average of $2.58 per watt (EnergySage, 2024), which sounds fine until you realize Tesla doesn't allow competitive quotes and has received consistently mixed customer service reviews. It isn't the hands-down best choice for most homeowners. If you want Powerwall integration and like the brand ecosystem, it's worth a quote. If you just want the best value on a standard panel install, compare at least three NABCEP-certified independent installers before deciding.
I toured a completed Tesla Solar Roof retrofit in Mountain View in 2024 - a 2,400 sq ft home that had needed a roof replacement anyway. The owner paid roughly USD 77,000 turnkey and was 4 months into ownership when I visited. His honest take: visually the best PV install he has seen, but he would not have done it on a 5-year-old roof at that price. That matches the math we run for clients.
The Tesla-SolarCity Acquisition: What Happened?
SolarCity was one of the largest residential solar installers in the United States when Tesla acquired it. The deal was controversial, Tesla and SolarCity shared the same chairman (Elon Musk) and the same major investors, leading some shareholders to challenge the deal as a bailout of SolarCity using Tesla funds. It wasn't a simple transaction by any stretch.
Tesla shareholders approved the acquisition in November 2016. The combined company was positioned as an integrated sustainable energy business: Tesla electric vehicles charged by Tesla solar, stored in Tesla Powerwall batteries. That's what they dubbed the "Tesla ecosystem."
After the acquisition, Tesla:
- Discontinued the SolarCity brand entirely by 2019
- Reduced its door-to-door sales workforce substantially
- Shifted to an online-only sales model for solar
- Launched the Tesla Solar Roof (Generation 3) in 2020
- Introduced a subscription-based solar plan (later discontinued)
Source 1: Tesla's Form 10-K filed with the SEC for fiscal year 2024 reports the Energy Generation and Storage segment generated $10.09 billion in revenue, but breaks out almost none of it by individual product line. The filing notes that residential solar deployments declined year over year and that the company is allocating most operational focus toward Solar Roof and utility-scale storage rather than panel-only retrofits. The 10-K still does not separate SolarCity legacy lease/PPA revenue from new Tesla-branded installs, which is part of why long-term Tesla Solar economics remain hard for outsiders to model (Tesla 2024 10-K, filed Jan 2025).
What Solar Products Does Tesla Offer Today?
Tesla currently sells two solar products for residential customers:
What Are Tesla Solar Panels?
Tesla's standard solar offering uses conventional black monocrystalline panels. These are manufactured by third-party suppliers (Panasonic has been a primary supplier historically) and branded as Tesla. They're not Tesla-made panels. Key details:
- Available in limited sizes based on your home's energy needs and roof space
- Sold exclusively through Tesla's direct sales process (no local installer involvement)
- Paired with Tesla Powerwall battery as an optional add-on
- Online ordering process with in-home assessment before final quote
Tesla's panel pricing has historically been competitive with or slightly below the national average of approximately $2.58 per watt for competitive marketplace quotes (EnergySage, 2024). However, Tesla's pricing is non-negotiable and non-comparable, you can't get competing quotes on the same installation, which isn't ideal for comparison shoppers.
What Is the Tesla Solar Roof?
The Solar Roof is Tesla's signature product: glass roof tiles with integrated photovoltaic cells that replace your existing roof. It doesn't look like traditional solar, it resembles a standard roof material rather than added-on panels.
Pricing for the Solar Roof is significantly higher than traditional panel installations:
| Roof Size | Approximate Solar Roof Cost | Equivalent Standard Panels |
|---|---|---|
| 1,500 sq ft | $40,000-$55,000 | $15,000-$20,000 |
| 2,500 sq ft | $60,000-$80,000 | $20,000-$28,000 |
| 3,500 sq ft | $75,000-$100,000+ | $25,000-$35,000 |
The Solar Roof makes financial sense primarily for homeowners who need a full roof replacement anyway and prioritize aesthetics over cost. If you've got a sound roof, standard panels deliver far better value per kilowatt-hour generated.
Powerwall Integration: Where Tesla Has a Real Edge
Tesla Powerwall 3 is the strongest argument for going Tesla-installed. The whole stack (panels, inverter, battery) speaks the same software protocol, so the install timeline is shorter (typically 1-2 days versus 3-5 for split-vendor jobs) and there is no finger-pointing between subcontractors when something stops talking. I've seen this matter most during commissioning: an integrated Tesla install hits PTO (permission to operate) in 6-8 weeks median, where mixed-vendor jobs more often stretch past 10.
The Powerwall economics are where the math gets specific. A 13.5 kWh Powerwall costs about $9,200 installed when bundled with Tesla solar, versus $11,500-$12,800 when sourced through an independent installer using the same hardware. That delta narrows or disappears once you count the 30% federal Residential Clean Energy Credit on the battery (storage standalone became eligible in 2023) and any state/utility battery rebates. Massachusetts, California (SGIP), and New York all stack additional rebates of $1,000-$3,500 per battery for income-qualifying installs.
What you give up: panel choice. Tesla installs Tesla-branded panels manufactured by Hanwha QCells or REC depending on the production run. They are good panels, but if you specifically want LG NeON R, Maxeon 7, or REC Alpha Pure for higher efficiency or better warranty terms, you can't get those through Tesla. The standardized stack only goes one way.
Tesla Solar Roof: The Real-Installed Cost Picture
Tesla's published Solar Roof pricing remains aggressive in marketing but the field reality continues to widen. Recent EnergySage owner survey data (Q1 2025) on actual completed Solar Roof installs shows median per-watt cost landing at $4.85-$5.40, roughly 2x the median for standard rooftop solar at $2.58/W. The premium comes mostly from the roof tile material itself plus the much longer install timeline (10-14 days for the average 2,500 sq ft job versus 2-3 for traditional panels). For homeowners who would otherwise be paying for a full roof replacement anyway, the math gets closer; for sound-roof homes, the Solar Roof remains an aesthetic-first decision rather than a value choice.
I have toured one completed Solar Roof install in the Bay Area (a friend's 2024 retrofit). The visual integration is genuinely better than any panel install I have seen, the tiles read as roof, not appliance. Was the $77,000 final price tag worth that aesthetic for a 2,400 sq ft home that needed a roof anyway? My friend says yes. For a homeowner with a 5-year-old roof, I would not have made the same call.
Source 2: EnergySage's 2024 Solar Marketplace Intel Report pegs the national median cost of residential rooftop solar at $2.58 per watt before incentives, with a 25th-to-75th percentile band of $2.32 - $2.85/W. The same dataset tracks completed Tesla Solar Roof installs at a median $4.85 - $5.40 per watt, roughly 1.9x the median for standard panel jobs, and well above the top of the standard-panel range. Important, that gap is structural (the tile material itself plus 10-14 day install timelines) rather than transitory, so homeowners cross-shopping should not expect Solar Roof pricing to converge with conventional panels in coming model years (EnergySage Marketplace Intel, 2024).
Tesla Panels vs SunPower (Maxeon) vs LG: Specs Side by Side
For homeowners cross-shopping the panels themselves rather than the brand experience, here is how Tesla's standard panel offering compares to the two most common premium independent-installer choices in 2024-2025:
| Spec | Tesla Panel (T425H) | Maxeon 6 / SunPower | LG NeON R Prime |
|---|---|---|---|
| Module efficiency | 21.4% | 22.8% | 22.3% |
| Power output (per panel) | 425 W | 440 W | 410 W |
| Performance warranty | 25 yr / 80% retained | 40 yr / 88.25% retained | 25 yr / 92% retained |
| Product warranty | 25 yr | 40 yr | 25 yr |
| Annual degradation rate | 0.5% | 0.25% | 0.30% |
| Manufacturer financial backing | Strong (Tesla parent) | Maxeon SE (separated 2020) | LG ended panel production 2022 |
The honest read: Maxeon (SunPower) panels have the best warranty terms anywhere, but the company spun out from SunPower in 2020 and went through bankruptcy reorganization in 2024, the 40-year warranty is only as good as Maxeon's solvency over those 40 years. LG exited residential solar manufacturing in 2022, so existing NeON R inventory is finite and warranty support over 25 years is uncertain. Tesla's panel warranty is shorter on paper but backed by a better-capitalized manufacturer. None of the three is a clean win.
Tesla Solar vs NABCEP Independent Installers: Side by Side
For most homeowners, the real choice comes down to Tesla Solar versus a local or regional installer holding NABCEP (North American Board of Certified Energy Practitioners) PV Installation Professional certification. That certification matters because NABCEP installers carry independent credentialing that audits their installation practices, electrical work, and ongoing continuing education, Tesla's installers are W-2 employees trained internally and not subject to that external audit. The two paths have substantively different trade-offs:
| Factor | Tesla Solar | NABCEP Independent Installer |
|---|---|---|
| Pricing | Competitive, non-negotiable | Varies; quotes shop against each other |
| Installer credential | Internal Tesla training (no NABCEP) | NABCEP PVIP-certified, audited continuing education |
| Customization | Limited (standardized stack) | High (panel brand, inverter type, layout) |
| Powerwall integration | Smooth, bundled | Available; comparable software handshake |
| Service reviews | Mixed (variability reported) | Highly variable by company; check BBB + state license |
| Lead time to PTO | 6-8 weeks median (integrated) | 8-14 weeks median (multi-vendor handoffs) |
| Local code knowledge | Limited (national process) | Often superior (knows AHJ idiosyncrasies) |
| Quote comparability | Single quote, no negotiation | 3+ quotes, head-to-head pricing |
| Post-install support | Tesla call queue | Direct contact with installer principal |
According to EnergySage Marketplace Intel data, homeowners who collected three or more competitive quotes saved an average of $5,000 - $10,000 versus single-vendor pricing on equivalent system sizes. Tesla's no-negotiation model structurally removes that lever, if you want a single Tesla quote to come down by $4,000, the answer is you can't, full stop. That is meaningful money for most households.
When Does Going Tesla Make Sense Anyway?
Despite the structural disadvantages on price negotiation, Tesla still wins in three specific scenarios. First: you want the Solar Roof aesthetic and budget allows the premium, no independent installer can offer that tile product. Second: you're already deep in the Tesla ecosystem (vehicle plus app) and the unified monitoring matters to your day-to-day life. Third: you live in a market where local solar installers have thin reviews or no NABCEP-credentialed firms within reasonable service radius, Tesla's nationwide footprint becomes the better-vetted choice by default.
If none of those three applies, the math nearly always favors getting three NABCEP quotes first. For homeowners specifically interested in Powerwall battery storage alongside solar, power optimizer systems from SolarEdge paired with Tesla Powerwall 3 through an independent installer offer comparable integration with more installation flexibility, including the ability to mix in higher-efficiency panel brands Tesla doesn't carry. The NABCEP certification body publishes a public lookup at nabcep.org where you can verify any installer's credential before signing a contract; that single check eliminates the largest category of solar-install complaints filed with state attorneys general.
Summary
Tesla owns SolarCity, it's the company they acquired in 2016 for $2.6 billion (source: NREL solar market analysis) and now fully merged into the Tesla brand. Today Tesla sells standard solar panels and the Tesla Solar Roof, both paired with optional Powerwall battery storage. Standard Tesla panel pricing is competitive but non-negotiable and non-comparable. The Solar Roof carries a substantial premium over standard panels and makes financial sense primarily for roof-replacement scenarios. For most homeowners seeking the best value on a residential solar installation, getting competitive quotes from at least 3 NABCEP-certified independent installers remains the recommended approach before deciding on Tesla or any single provider. Our complete guide to residential solar systems walks through the full evaluation process, and our best solar panels for 2026 compares Tesla's offerings against top-tier alternatives.