Tesla halts production of solar roof tiles, shifts to conventional solar panel supply

Tesla’s solar roof panel design is intended to look like ordinary shingles while delivering 98% of the efficiency of conventional solar panels. This is achieved by reflecting light, making the shingles appear indistinguishable from standard shingles when viewed from street level, although they are transparent when viewed from above. Unfortunately, this innovative concept failed to meet expectations. According to Electrek, Tesla decided in August 2026 to discontinue the product, stating that its network of third-party installers would supply only conventional solar panels. The solar roof was first revealed in 2026 and entered mass production in 2020.

During the Q1 2021 earnings call, Tesla CEO Elon Musk acknowledged “significant mistakes” that led to cost overruns and substantial delays. Two years later, a report by Wood Mackenzie indicated that only 3,000 U.S. homes had installed the product. Despite multiple redesigns, sales of the solar roof failed to reach the target of 1,000 units per week.

Tesla halts production of solar roof products to focus on conventional solar panels

The reputation of solar roofs lies in their appearance, which is considered less unattractive than that of traditional solar panels. Tesla’s patent application states, “The louver design is intended to provide visual concealment of the photovoltaic cells… while minimizing interference with the photovoltaic cells’ ability to receive solar energy when viewed from a side angle.” Nearly a decade after its glamorous debut, Tesla appears to be phasing out its solar roof panels. Shortly after the launch event, the company acquired SolarCity, then the largest solar provider in the United States, founded by Musk’s cousin, in a deal valued at $2.6 billion.

Years later, shareholder lawsuits regarding the acquisition revealed that the tiles demonstrated during the event were not operational, according to reports by Electrek. Tesla’s solar roof webpage, tesla.com/solarroof, has been redirected to its solar panels. The product has also disappeared from its energy navigation menu. The company’s online configurator for solar roof quotes now redirects to its traditional panels, indicating that it is gradually abandoning the poorly selling product.

TechCrunch learned that solar installers still offer Tesla’s solar roof based on project timelines. High prices and unmet sales targets contributed to the failure of Tesla’s solar roof. In 2021, Electrek found that customers faced drastic cost increases. The publication used a 3,947-square-foot roof and a 12.3 kW solar roof tile system as a reference framework. Prices rose from $54,966 (approximately HK$428,735) before subsidies to between $79,938 and $100,621 (approximately HK$784,844) within a year.

This drastic price volatility turned solar roofs into a luxury item. Tesla had high expectations for the aesthetic value of its product, while traditional solar panels have seen annual price reductions due to efficient modules and mass production. According to data from Wood Mackenzie, at its peak in 2022, Tesla installed 21 to 32 solar roof systems per week. These figures fell far short of Musk’s target of 1,000 units per week. User reports of insufficient power generation from these roofs and cases of melted roof underlayment also failed to improve Tesla’s outlook.

Flexible panels from competitors such as Merlin Solar are still on the market, indicating that integrated solar panels have not become extinct. However, Tesla’s abandonment of the concept may steer the entire industry in a different direction, particularly in the context of aesthetic advantages.

Henderson is a technology editor at TechRitual Hong Kong, specializing in reporting on smartphones, consumer electronics, SIM cards, and the mobile communications market. Since joining TechRitual, he has written thousands of technology news articles and product reviews, with content simultaneously published on major platforms such as SINA and Yahoo Tech.