Tesla Discontinues Solar Roof Tiles After Decade

Tesla has discontinued its Solar Roof tiles, nearly a decade after CEO Elon Musk unveiled the product, with the company internally concluding it was not financially viable [1, 2]. The move formalizes a retreat for a product that was central to the pitch for Tesla's $2.6 billion acquisition of SolarCity in 2016 [1, 3].

Retreat from Solar Tiles

Tesla has informed third-party installers it will no longer supply solar roof tiles, shifting its focus to conventional solar panels [1]. The company's Solar Roof webpage now redirects to its solar panels offering, and "Solar Roof" has been removed from the energy navigation menu [1, 2]. This change follows Tesla's decision to stop breaking out solar roof deployment figures in its quarterly reports in early 2024 [1, 3].

The Solar Roof was initially marketed as costing less than a new conventional roof combined with traditional solar panels, with early quotes around $22 per square foot [1, 3]. However, installed prices often came in significantly higher, leading to a class-action lawsuit in 2023 that Tesla settled for $6 million [1]. One customer reportedly saw their contracted price jump from approximately $72,000 to $146,000 before installation [1].

Missed Targets and Shifting Strategy

Elon Musk had repeatedly set ambitious targets for Solar Roof production and installation, including 1,000 roofs per week by the end of 2019 and the first half of 2020 [1, 3]. While Tesla claimed to reach 1,000 roofs of weekly production in 2020, installations lagged significantly [1]. At its peak in Q2 2022, Tesla deployed approximately 2.5 MW of Solar Roofs per quarter, translating to about 23 roofs per week, or 97.7% short of the 1,000-per-week target [3]. Wood Mackenzie estimated Tesla installed only about 3,000 Solar Roof systems in the US over roughly seven years [1, 3].

Tesla's solar strategy has now shifted to traditional panels, which it produces at its factory in Buffalo, New York [2]. The company has leaned into standard rooftop solar paired with its Powerwall battery storage [1]. Musk has also outlined plans for large-scale US solar manufacturing, focusing on panels rather than tiles [1, 2].

What to watch

• Tesla's solar manufacturing expansion: Monitor progress on Tesla's proposed $10.1 billion solar-cell factory outside Houston, Texas, which aims to create 9,712 jobs [2].
• Conventional solar panel deployments: Observe Tesla's reported figures for conventional solar panel installations in upcoming quarterly reports, following the discontinuation of Solar Roof data [1, 3].
• Competitive landscape for solar shingles: Track the market performance of competing solar shingle options now available from other manufacturers [1].

The discontinuation of the Solar Roof highlights the challenges of scaling integrated solar technology, particularly when initial pricing and production targets are not met, leaving questions about the long-term viability of similar premium solar solutions.