Tesla Ends Solar Roof Tile Sales, Keeps Traditional Panels After About 3,000 US Installations
Tesla has discontinued its solar roof tile product, informing third-party installers that it will accept no further orders and will supply only traditional solar panels. The roof tile, unveiled in October 2016 weeks before shareholder approval of the roughly US$2.6 billion SolarCity acquisition, faced pricing disputes, a consumer lawsuit settled for US$6 million in 2023, and production volumes far below targets. About 3,000 solar roof systems were installed in the United States over roughly seven years, versus Musk's repeated goal of 1,000 per week.
Tesla has stopped offering its solar roof tile product. The company has notified its network of third-party installers that it will no longer accept new orders for solar roof tiles and will supply only traditional solar panels. Tesla's website has been adjusted accordingly: the former solar roof page now redirects to the solar panel page, and the navigation menu under the energy section no longer lists "Solar Roof," retaining only solar panels, the Powerwall home battery, and the Megapack utility-scale storage system.
The product was unveiled in October 2016, when Tesla founder Elon Musk showcased demonstration tiles at an outdoor venue. Weeks later, Tesla shareholders voted to approve the approximately US$2.6 billion acquisition of solar installation company SolarCity, and the product demonstration was widely seen as a key factor in persuading investors to back the deal. Court proceedings related to subsequent litigation later revealed that the tiles displayed at the 2016 event were not yet fully functional power-generating products.
Actual installation prices for the solar roof diverged considerably from initial marketing. Tesla's early public pricing was about US$22 per square foot, but customers typically paid more in practice. In 2021, Tesla sharply raised prices for the product, and some customers under signed contracts faced increases before installation, triggering a class action lawsuit. In 2023, Tesla reached a US$6 million settlement; one customer who contracted at roughly US$72,000 saw the pre-installation quote rise to about US$146,000.
Musk repeatedly said Tesla could produce and install 1,000 solar roof systems per week, with the target originally set for between end-2019 and the first half of 2020. Actual installation volumes peaked at only 21 to 32 systems per week, and Tesla completed approximately 3,000 solar roof installations in the United States over about seven years. The company has now pivoted entirely to its traditional solar panel business, promoting rooftop solar paired with Powerwall storage batteries and planning to expand panel manufacturing capacity.
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