Tesla Discontinues Solar Roof Tiles, Shifts Focus to Conventional PV Modules
Tesla has reportedly ended its Solar Roof project, including its highly anticipated solar-tile offering, following insights from sources close to the initiative indicating that it lacked financial viability.
Last week, two individuals confirmed to the US news outlet Electrek that Tesla had notified third-party installers of its decision to stop supplying Solar Roof solar tiles, shifting its focus solely towards traditional solar panels.
Details of the Decision
Electrek cited one of these sources as saying that Tesla had come to the internal conclusion that the product was no longer a financially sustainable option.
Supporting this move, Tesla’s dedicated Solar Roof webpage now redirects visitors to the company’s solar panels homepage, signalling a definitive shift in strategy.
Background on the Solar Roof Product
The Solar Roof was first revealed by Tesla in October 2016, an initiative that coincided with the company’s acquisition of SolarCity for $2.6 billion. SolarCity was once a prominent name in the American solar market, before it fell into substantial debt issues. Notably, Elon Musk was the largest shareholder and chairman of SolarCity, which was managed by his cousins.
Many viewed the launch of Tesla’s Solar Roof as a strategic marketing move aimed at reassuring investors as they were being asked to support SolarCity financially, given its close connections to Musk.
The concept was appealing: textured glass tiles containing built-in solar cells designed to resemble a standard tiled roof while generating sufficient energy to power Tesla Powerwall batteries, recharge Tesla electric vehicles, and support a fully electric home.
Unfulfilled Promises and Legal Issues
However, the product failed to live up to expectations, with costs soaring beyond initial estimates. This led to substantial price hikes for Solar Roof installations, culminating in a class-action lawsuit.
By early 2023, reports indicated that a mere 3,000 Solar Roofs had been installed across the United States since their introduction in 2016, resulting in a total energy capacity of just 30 megawatts (MW) — a far cry from Musk’s ambitious target of 1,000 installations each week.
Emerging Competition
In late 2024, an Australian firm named Volt secured funding to enter the solar tile market, positioning itself as a competitor to Tesla and offering an alternative to consumers seeking similar products.
