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How Tesla’s solar business works in 2026 after killing Solar Roof

August 26, 2026 · Electrek · Score: 50

Tesla has discontinued its Solar Roof, the glass solar tile it launched back in 2016, closing the book on a product that never caught on. It made up only a small sliver of the residential solar market, and its end marks a bigger shift in how Tesla approaches solar for homeowners.

In its place, Tesla is pushing a new US-made 420-watt solar panel, built at its Buffalo, New York factory, designed to pair with its Powerwall 3 home battery. On Tesla's online quote tool, the default setup now bundles solar panels with a Powerwall, with the pitch centered on backup power and protection from rising electricity rates rather than solar alone. You can still choose solar without a battery, but the tool nudges you toward the bundle.

The bigger change is who shows up to install it. Tesla has largely stepped back from doing installations itself and now relies on a network of more than 7,000 third-party "Certified Installers" across 35-plus countries. Depending on where you live, you might get a system installed by Tesla's own crew, or you might buy Tesla equipment that a local certified company designs, installs, and services. Tesla doesn't publish which areas fall into which category, so you won't know until you enter your address into its online design tool. Pricing details it does share: a base cash price around $2.30 per watt before incentives, solar loans around 7.24%, Powerwall loans around 6.99%, and leases around 8.5% (leases only offered in Tesla's direct-install areas).

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