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 by 2019. Today Tesla sells conventional solar panels and the Tesla Solar Roof, tempered glass tiles with integrated cells costing $40,000 to $80,000 depending on roof size. Both 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), but Tesla doesn't allow competitive quotes and has consistently mixed service reviews. If you want Powerwall integration and the brand ecosystem, it's worth a quote. For the best value on a standard panel install, compare at least three NABCEP-certified independent installers first.
The Tesla-SolarCity Acquisition: What Happened?
SolarCity was one of the largest US residential installers when Tesla acquired it. The deal was controversial: Tesla and SolarCity shared the same chairman (Elon Musk) and major investors, and some shareholders challenged it as a bailout of SolarCity with Tesla funds. Shareholders approved it in November 2016, positioning the combined firm as an integrated energy business, the "Tesla ecosystem" of cars charged by Tesla solar and stored in Powerwalls.
After the acquisition, Tesla:
- Discontinued the SolarCity brand entirely by 2019
- Cut its door-to-door sales workforce and shifted to online-only solar sales
- Launched the Tesla Solar Roof (Generation 3) in 2020
- Introduced a subscription solar plan (later discontinued)
Tesla's 2024 10-K reports the Energy Generation and Storage segment at $10.09 billion in revenue but breaks out almost nothing by product line, and doesn't separate SolarCity legacy lease/PPA revenue from new Tesla-branded installs, part of why long-term Tesla Solar economics stay hard to model.
What Solar Products Does Tesla Offer Today?
Tesla currently sells two solar products for residential customers:
What Are Tesla Solar Panels?
Tesla's standard offering uses conventional black monocrystalline panels made by third parties (Panasonic historically) and branded as Tesla, not Tesla-made. They come in limited sizes, sell only through Tesla's direct process with no local installer, pair with an optional Powerwall, and are ordered online with an in-home assessment before the final quote. Pricing runs at or slightly below the $2.58/W national average (EnergySage, 2024), but it's non-negotiable and non-comparable, so you can't shop competing quotes on the same install.
What Is the Tesla Solar Roof?
The Solar Roof is Tesla's signature product: glass roof tiles with integrated cells that replace your existing roof and read as roofing rather than added-on panels. Pricing runs well above traditional panels:
| 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 one software protocol, so installs run shorter (1-2 days versus 3-5 for split-vendor jobs) with no subcontractor finger-pointing. An integrated Tesla install hits PTO (permission to operate) in 6-8 weeks median, where mixed-vendor jobs stretch past 10.
The Powerwall economics get specific. A 13.5 kWh Powerwall costs about $9,200 installed bundled with Tesla solar, versus $11,500-$12,800 through an independent installer using the same hardware. That gap narrows once you count the 30% federal credit on the battery (standalone-eligible since 2023) and state rebates: Massachusetts, California (SGIP), and New York stack $1,000-$3,500 per battery for income-qualifying installs. What you give up is panel choice. Tesla installs its own panels (Hanwha QCells or REC by production run), good panels, but you can't get LG NeON R, Maxeon 7, or REC Alpha Pure through Tesla.
Tesla Solar Roof: The Real-Installed Cost Picture
Tesla's published Solar Roof pricing stays aggressive in marketing, but field reality is wider. EnergySage owner survey data (Q1 2025) on completed installs shows median per-watt cost at $4.85-$5.40, roughly 1.9x the $2.58/W standard-solar median (25th-75th band $2.32-$2.85). The premium is structural, tile material plus a 10-14 day install for a 2,500 sq ft job versus 2-3 days for panels, so cross-shoppers shouldn't expect it to converge with conventional panels.
I 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've seen, the tiles read as roof, not appliance. Was $77,000 worth that on a 2,400 sq ft home that needed a roof anyway? My friend says yes. For a 5-year-old roof, I wouldn't have made that call.
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 in 2020 and went through bankruptcy reorganization in 2024, so a 40-year warranty is only as good as its solvency. LG exited residential panels in 2022, so NeON R inventory is finite and 25-year support is uncertain. Tesla's warranty is shorter on paper but backed by a better-capitalized parent. None of the three is a clean win.
Tesla Solar vs NABCEP Independent Installers: Side by Side
For most homeowners the real choice is Tesla Solar versus a local installer holding NABCEP (North American Board of Certified Energy Practitioners) PV Installation Professional certification. NABCEP matters because it independently audits installation practices, electrical work, and continuing education, while Tesla's installers are internally trained W-2 employees not subject to that audit. The trade-offs differ:
| 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 |
Per EnergySage data, homeowners who collected three or more competitive quotes saved $5,000-$10,000 versus single-vendor pricing on equivalent systems. Tesla's no-negotiation model removes that lever entirely, meaningful money for most households.
When Does Going Tesla Make Sense Anyway?
Tesla still wins in three scenarios. First, you want the Solar Roof aesthetic and budget allows it, no independent installer offers that tile product. Second, you're deep in the Tesla ecosystem and unified monitoring matters daily. Third, your local market has thin-reviewed or no NABCEP-credentialed installers within service radius, making Tesla's nationwide footprint the better-vetted default.
Otherwise, the math favors three NABCEP quotes first. For Powerwall storage, SolarEdge power optimizers paired with a Tesla Powerwall 3 through an independent installer offer comparable integration with more flexibility, including higher-efficiency panel brands Tesla doesn't carry. Verify any installer's credential at nabcep.org before signing; that one check eliminates the largest category of solar-install complaints filed with state attorneys general.
Summary
Tesla owns SolarCity, acquired in 2016 for $2.6 billion and now fully merged into the Tesla brand. Today Tesla sells standard panels and the Solar Roof, both with optional Powerwall storage. Panel pricing is competitive but non-negotiable and non-comparable. The Solar Roof carries a steep premium and makes sense mainly for roof-replacement scenarios. For the best value, get quotes from at least three NABCEP-certified independent installers before deciding. Our residential solar systems guide walks through the process, and best solar panels for 2026 compares Tesla against top alternatives.