The solar company owned by Tesla is SolarCity, which Tesla acquired on November 21, 2016. The deal was announced at about $2.6 billion in stock, and Tesla's own 2016 annual report books the total purchase price at $2.1 billion. SolarCity was founded in 2006 by Elon Musk's cousins Lyndon and Peter Rive, with Musk as chairman. Tesla announced in February 2017 that the SolarCity brand would disappear, and it now sells solar directly under the Tesla name.
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 shareholders sued, arguing it was a bailout of SolarCity with Tesla funds. Shareholders approved it in November 2016. Tesla's 10-K shows it exchanged 11,124,497 Tesla shares for 101,131,791 SolarCity shares at closing.
After the acquisition, Tesla:
- Announced in February 2017 that SolarCity would be folded into the Tesla brand, with PV systems and the new Solar Roof both sold as Tesla products
- Ended SolarCity's door-to-door sales in April 2017 and moved solar sales to Tesla stores and the website
- Unveiled Solar Roof version 3 in October 2019
- Offered a solar subscription plan from 2019 and discontinued it in September 2021
- Began manufacturing its own residential solar panel in 2025, with first customer deliveries in January 2026
- Stopped supplying Solar Roof tiles in August 2026, according to Electrek
Tesla's FY2025 10-K reports energy generation and storage revenue of $12.771 billion, up 27% from $10.086 billion in 2024. That segment is mostly batteries (46.7 GWh of storage deployed in 2025), and Electrek notes Tesla stopped reporting solar deployment figures in early 2024, so the filing can't tell you how big the solar business really is.
What Solar Products Does Tesla Offer Today?
Tesla sells one solar product for residential customers now, plus the battery that goes with it.
What Are Tesla Solar Panels?
In January 2026 Tesla began delivering what Electrek calls the first solar panel the company fully designed and manufactured itself. There are two models, the TSP-415 (415 W, 20.3% efficiency) and the TSP-420 (420 W, 20.5%). Both measure 1,805 x 1,135 x 40 mm, and pv magazine reports they're assembled at Gigafactory New York in Buffalo with initial capacity above 300 MW a year.
The odd part is the electrical design. Instead of the usual three bypass diodes, each panel has 18 independent power zones, so shade on one section costs less output than on a conventional module. The mounting is rail-less, and Tesla claims installation is 33% faster. Tesla lists a 25-year product warranty and a performance guarantee of at least 98% power after year one, then no more than 0.45% degradation a year.
Electrek puts Tesla's base pricing at roughly $2.30 per watt before incentives, quoted through an online configurator. Tesla installs directly in its own service territories and, since September 2024, has recruited Certified Installers to cover the rest. Financing includes cash, loans, and a 25-year lease that's available only in Tesla's direct service territories.
What Happened to the Tesla Solar Roof?
Electrek reported in August 2026, citing two sources, that Tesla told its certified installers Solar Roof tiles are no longer available to order. The tesla.com/solarroof page now redirects to solar panels, and "Solar Roof" is gone from the Energy menu. Aurora Solar points out that Tesla made no formal public announcement, and that existing roofs remain supported under their warranty terms.
The track record explains it. Elon Musk set a target of 1,000 new Solar Roofs a week by the end of 2019, and Electrek counts roughly 3,000 systems installed in the US over about seven years, at a peak of 21 to 32 a week. Electrek's May 2026 piece puts an average Solar Roof at about $106,000 before incentives, against roughly $60,000 for a conventional roof replacement plus panels. Anyone still quoting you a Solar Roof price in 2026 is working from old information.
Where Does Tesla Have a Real Edge on Powerwall?
Powerwall 3 is the strongest argument for going Tesla-installed. EnergySage lists it at 13.5 kWh usable capacity, 11.5 kW of continuous output, LFP chemistry and a built-in hybrid inverter, with a 10-year warranty that guarantees 70% capacity retention. Its typical installed cost on EnergySage's marketplace is $13,473 before incentives, and the same review notes installation waits of three to six months in many markets.
Incentives changed hard at the start of 2026. Tesla's FY2025 10-K states that residential credits expired on December 31, 2025, and that covers standalone storage as well as panels. A homeowner buying outright in 2026 gets no federal credit on either. State programs still exist, such as California's Self-Generation Incentive Program, which the 10-K names. EnergySage's first-half 2026 data shows the industry's workaround: the share of installers quoting third-party-owned options like leases and PPAs climbed from about 14% to roughly 41% over six months, and pre-paid leases came in 39% cheaper than cash purchases.
What you give up on panel choice is simple. Tesla's own package uses Tesla's own panels, so you can't pair a Tesla-installed Powerwall with a higher-efficiency brand.
What Do the Numbers Say About Tesla Solar Pricing?
EnergySage's marketplace median was $2.57 per watt in the first half of 2026, up 3% from the second half of 2025, and it says losing the federal credit made a purchased system roughly $9,000 more expensive for most homeowners. Tesla's roughly $2.30 per watt base rate sits below that median, but it's a starting rate before incentives and installation extras, not an all-in quote. Ask for the full written price, including any electrical upgrades and the Powerwall, before comparing.
How Do Tesla Panels Compare With REC Alpha Pure-RX?
For homeowners cross-shopping the panels themselves rather than the brand experience, here is how Tesla's TSP-420 compares with one premium independent-installer option, REC's heterojunction Alpha Pure-RX:
| Spec | Tesla TSP-420 | REC Alpha Pure-RX |
|---|---|---|
| Power output (per panel) | 420 W | 450-470 W |
| Module efficiency | 20.5% | up to 22.6% |
| Product warranty | 25 yr | 25 yr |
| Performance warranty | 98% after year 1, then 0.45% a year at most | 92% minimum at year 25 |
| Made in | Buffalo, New York | Singapore |
Sources: pv magazine and NRG Clean Power for Tesla, REC's launch release for the Alpha Pure-RX. At the 0.45% ceiling, Tesla's guarantee works out to roughly 87% at year 25 (98% minus 24 years of 0.45%), against REC's 92%. That's a calculation from the stated figures, not a number Tesla prints.
The honest read: Tesla's panel gives up about two points of efficiency to the best premium modules, and what it buys in return is the shade design and a single-vendor stack with Powerwall. On a clean, unshaded roof the REC panel makes more power per square foot. A warranty is also only as good as the company behind it. SunPower Corp. filed for Chapter 11 in August 2024, and LG announced in February 2022 that it would stop making solar panels (it said it would keep honoring its limited warranties). Tesla's balance sheet is far larger, though none of these 25-year promises has been tested end to end. Why the company behind a warranty counts as part of the hardware is covered in manufacturer age as a payback spec.
How Does Tesla Solar Compare With NABCEP Installers?
For most homeowners the real choice is Tesla Solar versus a local installer. NABCEP (North American Board of Certified Energy Practitioners) PV Installation Professional certification is a useful filter for the local option: it's an individual credential, not a company badge, and it requires documented training (58 hours of classroom learning on the Board Eligible path), project experience, and passing the PVIP exam. The trade-offs differ:
| Factor | Tesla Solar | Independent Installer |
|---|---|---|
| Pricing | Online configurator, base about $2.30/W | Written quotes you can shop against each other |
| Installer | Tesla crews in direct territories, Certified Installers elsewhere | Local company, varies widely |
| Panel choice | Tesla TSP-415 / TSP-420 only | Any brand, including 22%+ modules |
| Powerwall integration | Bundled, one software stack | Powerwall 3 or other batteries |
| Financing | Cash, loan, lease (lease in direct territories only) | Varies by company |
| Quote comparability | One quote per Tesla design | Three or more quotes, head-to-head |
| Post-install support | Tesla service channels | Direct contact with the installer |
Because Tesla now routes much of the country through certified third-party installers, the credential question applies there too: ask whoever shows up which crew will do the work and what they hold.
When Does Going Tesla Make Sense Anyway?
Tesla still wins in a few scenarios. First, you want panels and Powerwall from one vendor and one app, and the install timeline is acceptable. Second, your roof has partial shade from vents, chimneys or trees, which is what the 18-zone panel is designed for. Third, you're in a Tesla direct service territory and want the lease, which isn't offered elsewhere.
Otherwise, the math favors collecting three written quotes first. Verify any installer's credential at nabcep.org before signing.
Tesla dropped its tile roof and now sells one panel model, so the only real question is whether that panel beats three written local quotes.
Summary
Tesla owns SolarCity, acquired in 2016 and now fully merged into the Tesla brand. Today Tesla sells its own panels with optional Powerwall 3 storage, and the Solar Roof was discontinued in August 2026. Panel pricing starts near $2.30 per watt before incentives, and the federal residential credit no longer applies. For the best value, get quotes from at least three independent installers before deciding. Our residential solar systems guide walks through the process, and best solar panels for 2026 compares Tesla against top alternatives.