Tesla has officially discontinued its Solar Roof tile product, marking a significant shift in the company’s residential solar strategy. According to Electrek, Tesla has informed its network of third-party installers that it will no longer supply solar roof tiles, offering only conventional solar panels moving forward.
Tesla Ends Solar Roof Tile Program
Two sources close to the program confirmed to Electrek that Tesla has notified certified third-party installers that solar roof tiles are no longer available to order. The company will now supply only standard solar panels for residential installations.
Tesla’s website changes reflect this decision: the long-standing Solar Roof page now redirects to the solar panels section, and the Energy navigation menu lists only Solar Panels, Powerwall, and Megapack. These updates were live as of the date of the article.
Background: The Solar Roof’s Rise and Fall
Elon Musk first unveiled the Solar Roof in October 2016, using a Hollywood back lot as the stage for the product’s debut. The event took place just weeks before Tesla shareholders approved the company’s approximately $2.6B (~AUD 3.7B) acquisition of SolarCity, a solar installer where Musk was the largest shareholder and chairman.
It later emerged that the tiles shown at the 2016 unveiling were not yet functioning solar products. The Solar Roof was marketed as a cost-effective solution, with early quotes around $22 per square foot, promising to be less expensive than a new conventional roof plus traditional solar panels.
Pricing and Deployment Challenges
Despite its initial promise, the Solar Roof faced significant pricing and deployment issues. In 2021, Tesla sharply increased Solar Roof prices, sometimes after customers had already signed contracts. One customer’s contracted price reportedly rose from about $72,000 (~AUD 101,320) to roughly $146,000 (~AUD 205,455) before installation.
These price hikes led to a class-action lawsuit, which Tesla settled for $6M (~AUD 8.4M) in 2023. The company also stopped reporting Solar Roof deployment figures in its quarterly reports in early 2024.
Production Targets and Actual Installations
Elon Musk had repeatedly stated that Tesla would be producing and installing 1,000 Solar Roofs per week, targeting the end of 2019 and the first half of 2020. However, actual installations fell far short of this goal.
According to Wood Mackenzie data, Tesla was installing only about 21 to 32 Solar Roofs per week at its peak. Over roughly seven years, Wood Mackenzie estimated that Tesla installed only about 3,000 Solar Roof systems in the US.
Tesla’s Shift to Conventional Solar Panels
With the discontinuation of the Solar Roof, Tesla has now fully pivoted to offering standard rooftop solar panels, often paired with its Powerwall energy storage system. The company’s website and marketing now focus exclusively on these products.
Elon Musk has also discussed plans for large-scale US solar manufacturing, emphasizing panels rather than tiles.
Why this matters
Tesla’s decision to end the Solar Roof program highlights the challenges of scaling new solar technologies in the residential market. The move signals a return to more established solar solutions, as the company focuses on products with proven economics and broader market appeal.
For homeowners and installers, this means that integrated solar roof tiles from Tesla are no longer an option, and future installations will rely on conventional solar panels.
What this means for buyers
Homeowners considering solar installations from Tesla will now be limited to traditional solar panels rather than integrated solar roof tiles. Those interested in solar shingles or similar products may need to explore offerings from other manufacturers.
Buyers should compare available options and consider their roof type, budget, and energy needs before making a decision.
Key Specs
- Product Discontinued: Tesla Solar Roof tiles
- Current Offerings: Conventional solar panels, Powerwall, Megapack
- Initial Solar Roof Price (quoted): $22 per square foot
- Reported Price Increase (example): $72,000 (~AUD 101,320) to $146,000 (~AUD 205,455)
- Class-Action Settlement: $6M (~AUD 8.4M) (2023)
- Peak Weekly Installations: 21 to 32 Solar Roofs
- Estimated Total Installations (US): About 3,000 systems over seven years
- Solar Roof Launch Date: October 2016
Source
Images sourced from: electrek.co, thecooldown.com