How Tesla’s solar business works in 2026 after killing Solar Roof
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- Solar Roof was quietly discontinued by Tesla earlier this month after the company had installed only about 3,000 tile roofs through end of 2022 — roughly 0.17% of that year's residential solar market.
- Tesla's energy business hit $12.8 billion in revenue in 2025, up 27% year-over-year, but the growth came almost entirely from Megapack and Powerwall battery storage rather than rooftop solar.
- Powerwall 3 now anchors Tesla's solar pitch, bundled by default with the company's first fully self-designed panel — a US-made 420-watt unit launched in January 2026 from its Buffalo, New York Gigafactory, the same plant that formerly built Solar Roof tiles.
- Tesla's certified third-party installer network grew from roughly 2,000 across 14 countries in late 2024 to more than 7,000 across 35-plus countries, collectively handling over 1 million installations.
- Tesla no longer publishes which states it services directly, requiring customers to enter their address in its online design tool before learning whether Tesla crews or a third-party installer will handle the job.
- Tesla's 25-year solar lease (12 years for Powerwall-only) carries a 3% annual price escalator and a buyout option after five years, but is only offered in Tesla's direct service territories — solar loans run about 7.24% and Powerwall loans around 6.99% nationally.
Why it matters: Buyers outside Tesla's direct service territories will be matched with a third-party certified installer for both purchase and service, making the quality of a Tesla solar system dependent on which local contractor handles the job — and Tesla deliberately keeps its service map opaque, forcing customers deep into the quote flow before learning which model applies.
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