Tesla Launches New Rooftop Solar Panel Product
Tesla is reaffirming its commitment to rooftop solar energy, a full ten years after acquiring SolarCity, a leader in the sector at that time.
Since the acquisition, Tesla has continued to offer rooftop solar solutions through its energy division. However, the Solar Roof product, which was introduced in 2016 as a significant reason to endorse the buyout, has yet to match the success of Tesla’s Powerwall for home battery storage or the Megapack for large-scale grid storage.
Unveiling of the New Solar Product
On Thursday, following the release of its year-end earnings for 2025, Tesla revealed its latest energy innovation at a distinctive event held at the retro-styled Tesla Diner in Los Angeles. The exciting new offering is a rooftop solar panel, launched during a challenging period for both Tesla and the residential solar market.
Colby Hastings, head of the residential energy sector at Tesla Energy, stated, “This is the first time that we’ve fully designed and manufactured our own solar panel, aside from everything that we’ve been doing on the Solar Roof. This is available now. This is very real-world.”
Manufacturing and Design Enhancements
Tesla has initiated production of the new panel at its Buffalo, New York facility, where it has set up a production line with a capacity exceeding 300 megawatts annually, with potential for expansion, according to Hastings. The same site is also responsible for constructing the Solar Roof.
The new design boasts “superior aesthetics,” according to Hastings, thanks to its sleek, all-black look, which does away with the visible bus ribbons typically used for electricity conduction from the solar cells. Additionally, Tesla utilised data from 500,000 in-house solar installations to simplify the components required to affix the solar modules to roofs, eliminating the conventional rail system commonly employed for securing panels.
“We’re always looking for ways to eliminate unnecessary components and enhance efficiency,” Hastings noted.
Mixed Financial Performance and Strategic Shifts
On Wednesday, Tesla reported its first full-year revenue decline, with drops in vehicle deliveries and gross profit throughout 2025. Notably, the company announced plans to cease production of its Model S and Model X vehicles in favour of manufacturing humanoid robots, although the new solar panels will still be “proudly made on Earth by humans,” as stated in company materials.
Despite the setbacks in its core automotive sector, Tesla’s energy division has flourished, with energy generation and storage revenue rising by 27%, amidst a 10% downturn in automotive revenue. In 2025, the company successfully deployed an impressive 46.7 gigawatt-hours of storage capacity, significantly more than the figures from four years prior. However, while Tesla is transparent about the battery capacity delivered, it remains silent on the solar capacity deployed, making it challenging to assess the solar segment’s performance relative to energy storage.
Challenges and Opportunities in the Solar Market
The residential solar market, similar to Tesla’s vehicle sales, is currently facing challenges. California, the largest market for rooftop solar, has revised its compensation rules, adversely affecting sales. Furthermore, recent budget legislation backed by the Republican party has removed the federal tax credit for households purchasing their own solar systems, although it continues to support tax credits for leased systems.
Tesla introduced a leasing option last year to take advantage of the remaining tax credits, allowing customers to buy out their systems after a five-year lease. Furthermore, being a U.S.-based manufacturer, the company is positioned to qualify for the advanced manufacturing production credit (45X) for its Buffalo operations.
Thrusting into a Competitive Landscape
Despite the upheaval in the market, Tesla still has access to supportive federal initiatives following the passage of the budget law, despite CEO Elon Musk’s objections. However, the company will not stand alone in the competitive American solar market, facing rivals such as Qcells, the leading manufacturer of residential solar panels in the U.S., which boasts more than 8 gigawatts of module capacity compared to Tesla’s 300 megawatts.
In an industry where scale plays a crucial role, Tesla’s connected ecosystem of home energy products may give it an edge. Hastings remarked, “To my knowledge, we’re the only manufacturer producing electric vehicles, charging solutions, storage systems, mounting hardware, and solar panels, all integrated to function seamlessly for your home through a single app.”
This integrated approach could help Tesla carve out a profitable niche in the remaining U.S. rooftop solar market as the country approaches a new political landscape.
