Tesla’s Gigafactory 2 Starts Solar Roof Tile Production
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NASDAQ: TSLA
Word is that the Buffalo manufacturing plant began churning out solar panels last year, and roof tiles last month. Next question: Who will install them?
Tesla, Inc. (TSLA.0.34% ) is finally shipping both solar panels and Solar Roof tiles from Gigafactory 2, the manufacturing plant it is building with Panasonic in Buffalo, New York. We don’t know yet how many, but it’s progress that something is coming out of the plant after months of delays.
The goal is for Gigafactory 2 to produce at least 1 GW of high-efficiency solar cells and modules annually (and potentially as much as 2 GW), as well as its Solar Roof tiles. But it’s taking somewhat longer than Telsa originally forecast to turn those production plans into reality.
Ramping up
Reporting from PV Magazine and Greentech Media indicates that Panasonic began producing solar panels at Gigafactory 2 in October, and Solar Roof production began in December. Tesla also said that Solar Roof tiles are now being shipped to customers who aren’t Tesla employees, essentially their debut in the commercial market.
Panasonic (PCRFY 0.58% ) is ultimately in control of most of the solar cell and module manufacturing, and may have different plans for its solar business than Tesla. While Panasonic clearly sees U.S. manufacturing as a key way to grow its solar module business.- and one that may become even more important if Trump introduces tariffs on imported solar panels this month.- Tesla has been shrinking its solar business.
The situation could be interesting if Panasonic finds itself with a tariff-related windfall in 2018, but Tesla doesn’t have the capacity to take all of those solar panels and install them on homes itself. Panasonic doubtless would be more than happy to sell panels to other installers if they were the ones willing to pay the highest price.
Solar Roof is here. sort of
For all the hype around the Solar Roof when it was announced in fall 2016, there hasn’t been a lot of talk about it from Tesla over the past year. Production has come online much more slowly than the company expected, and we still don’t have many details about performance and installation. We also have no idea how many Solar Roofs have been ordered so far.
With those caveats laid out, it’s important for Tesla to get the Gigafactory 2 up to full production because it’ll augment the EV and energy storage business, creating a full suite of products for customers to consider. Whether or not people will want to buy a Solar Roof along with their Model 3 is up for debate, but Tesla is in a unique position to offer complementary energy services.
Now comes the hard part
As we’ve seen with the Model 3, the first month of production won’t be the hard part for Gigafactory 2. Tesla and Panasonic now have to produce solar cells, modules, and the Solar Roof to world-class standards at world-class costs. It’s not clear either company can do that, given the fact that Tesla is constantly late and over budget in auto manufacturing, and that Panasonic has already been forced to shut down some of its solar manufacturing because it wasn’t competitive in the market.
At least the initial production milestone has been crossed off for Tesla at Gigafactory 2. The rest of this year will be about ramping up output and selling more solar products, something the company didn’t seem terribly interested in during 2017.
Travis Hoium has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy.
UPDATE: Tesla shares new details about its rooftop solar panel system
UPDATE: Tesla has released details about a solar panel that will be fabricated by Panasonic at Tesla’s Gigafactory 2 in Buffalo, NY, for exclusive use by Tesla, Electrek reported Sunday. Tesla said it will use the system for all future residential projects through its recently acquired installation business, SolarCity. The 325-watt modules’ mounting hardware will be concealed and the units will have a slender profile. Panasonic’s currently available panels are 325 watts with 21.76% efficiency. The solar panel is separate from the company’s shingle-based rooftop PV system.
Dive Brief:
- Electric car maker Tesla announced in a Tweet postedon March 24 by CEO Elon Musk that it will begin taking orders for its solar roof tiles in April.
- The tiles will be made of textured glass by Panasonic Corp. and are expected to look identical to ordinary shingles that enable light to pass through them onto a flat photovoltaic cell, according to Bloomberg. Musk has said the rooftop solar cells will cost less to produce and install than traditional roofing materials, even before the estimated savings from the electricity saved by using the units.
- have not yet been determined for the units, but installations are set to begin in mid-2017, according to Tesla’s website.
Dive Insight:
Solar is gaining traction in the residential market as more homeowners act on their own interests in energy efficiency or take advantage of the incentives to expand the adoption of PV technology, and as builders begin to take notice of such demand. The Solar Energy Industry Association estimated that more than 1 million homes included rooftop solar installations in 2016. Meanwhile, the Department of Energy forecasts usage to top 3.8 million homes by 2020.
The recent announcement by Miami–based builder Lennar to bring a 180-home, master-planned community powered by an onsite, 443-acre photovoltaic system is just one development upping the ante when it comes to residential solar installments. The country’s northeast region also has a lot to gain from the increasing adoption of solar installations, according to a report by Redfin and the DOE. Adding such systems to houses could add to property values in the region and ease homeowners’ electrical bills in an area where limited sun exposure can lead to hefty energy-consumption costs.
New systems aimed at shifting perceptions around solar installations by bringing in aesthetic elements are being developed to strengthen the technology’s market value. While a more attractive design for the panels could be a boon to solar energy systems, a recent motion to include Home Energy Rating System scores in home appraisals also stands to raise the number of PV systems on the market by streamlining the financing process for such systems between builders and buyers.
Though Tesla has broken into the residential solar panel market, the company will profit off the industry further with its planned installation of a 70-megawatt solar farm situated above its 5 billion electric battery factory in Nevada — a development that is forecast to claim the title of the world’s largest rooftop solar array. Across the industry, energy-related developments have been a boon for construction employment, with the DOE finding that the energy-efficiency sub-sector provided the majority of more than 2 million construction jobs created in 2016.
Recommended Reading
- Tesla Will Take Orders for Its Solar Roof in April Bloomberg
- Tesla unveils its new ‘sleek and low-profile’ exclusive solar panel made by Panasonic Electrek
Tesla Solar Roof: the complete review
In October 2019, Tesla Motors announced the launch of the Tesla Solar Roof V3, the company’s third version of its integrated solar glass shingle. Among several updates, version three included larger tiles, lower production costs, increased power density, and a more straightforward installation process.
Additionally, the total number of parts in the product decreased. Tesla predicted that these changes would significantly reduce the cost of the product; however, the company has continued to struggle with expediting its solar roof installations.
The Tesla Solar Roof: EnergySage’s take
While Tesla is most famous for its electric vehicles (EVs), the company’s future lies in total clean energy integration – a one-step carbon reduction process that involves pairing solar panels with your Tesla EV. For home owners who want the benefits of solar without the “look” of solar, the Tesla Solar Roof provides an enticing alternative: but is this luxury roof the right option for you?
What’s in this article?
There’s a lot in here, and we’ll try to speak to every aspect of the solar roof. Skip ahead to any of the sections below:
- What are solar shingles?
- Latest news on the solar roof
- Solar Roof key events timeline
- Solar roof specifications
- Cost estimates
- Should you wait for the Tesla Solar Roof?
- Tesla’s competitors
The Tesla Solar Roof: what you need to know
Some solar industry stakeholders believe that solar needs to be rebranded as an aesthetic and technical improvement that can be a part of a home renovation rather than a hefty module affixed to your rooftop. That sentiment was emphasized in Elon Musk’s October 2016 launch of Tesla’s first roofing product. With the Solar Roof, the company aims to bring solar further into the mainstream by removing any sort of aesthetic concerns that homeowners may have.
“I think there’s quite a radical difference between having solar panels on your roof that actually make your house look better versus ones that do not, I think it’s going to be a night-and-day difference,” said Musk in a statement before the official launch of Tesla’s first solar roof. Two months later, he unveiled the solar roof using a crowded, suburban event in California to demonstrate that Tesla’s panel design was so seamlessly integrated that the entire audience of press needed to be altered to its presence on the house in front of them.
Using a Tesla Powerwall home battery with the Tesla Solar Roof
Tesla Solar Roofs come paired with energy storage in the form of a Tesla Powerwall battery. The Tesla Powerwall boasts a maximum power rating of 7 kW with no sun or 9.6 kW with full sun to go along with 13.5 kWh of usable capacity. It can also help provide solar power to your home during a power outage. It also comes with the Tesla app that allows users to monitor their energy production in real- time. Tesla Powerwalls are eligible for the federal tax credit.
What’s the latest news on the Tesla Solar Roof tiles?
Tesla has now installed Solar Roofs across the country, though the exact number of installations is unclear. This solar product has been gaining popularity among some consumers, leading to long installation wait times for customers who sign contracts. In April 2021, many of these customers were shocked when they received emails from Tesla quoting higher installation costs than their contract prices. The lack of explanation and transparency caused confusion and frustration among consumers, especially if they could no longer afford the hefty price tag.
During Tesla’s quarterly earnings call in April 2021, CEO Elon Musk affirmed that demand “remains strong” for the Tesla Solar Roof, despite increases in Solar Roof pricing. He did concede that Tesla “basically made some significant mistakes in assessing the difficulty of certain roofs.” Tesla has added roof complexity information to its website and a roof complexity disclaimer to its Solar Roof calculator; however, Tesla notes that your roof complexity won’t be determined until after you place an order for a Solar Roof. Tesla divides the complexity into three categories–simple, intermediate, and complex–based on the following criteria:
- Simple: single-level roof, uncrowded mounting planes, few obstructions (pipes, chimneys, skylights), low pitch
- Intermediate: multi-level roof (roof sections built on multiple stories of your house), more crowded mounting plane, more obstructions (pipes, chimneys, skylights), higher pitch
- Complex: multi-level roof (roof sections built on multiple stories of your house), heavily crowded mounting plane, many obstructions (pipes, chimneys, skylights), steep pitch
Based on previous reports, the price of a Tesla Solar Roof varies substantially depending on your roof’s complexity.
Timeline of key Tesla Solar Roof news and announcements
Tesla seems to have a pattern of overpromising and underdelivering in regard to its solar roof. Here’s a breakdown of what the past several years have looked like for the company and its customers.
- April 2016: Tesla purchases Solarcity and begins production on solar panels and the solar roof.
- May 2017: Tesla began taking orders for its Tesla solar tiles
- August 2017: Elon Musk revealed that he and another Tesla executive already had the roof installed on their respective properties.
- January 2018: The company announced it was ramping up production of the roof product at its Buffalo Gigafactory. Tesla then started initial installations with customers at the top of its waitlist in the California area in mid-March, roughly eight months after its initial estimate.
- May 2018: Tesla had about 11,000 orders for the solar roof and it was struggling to meet the demand.
- August 2018: Only 12 solar roofs had been installed in California, the leading state in the country for solar.
- September 2018: A report was released stating that solar roofs may not be widely installed for a long time. According to CNBC, Musk said they needed more time to work out all the details. “There’s only so much accelerated life testing that you can do on a roof. So before we can deploy it at a large number of houses we need to make sure that it’s that all elements of the roof are going to last for at least three decades,” said Musk in a summer 2018 meeting. The statement lacked both commitment and a clear timeline.
- November 2018: According to a Bloomberg report, the company began ramping up production, implementing 24/7 operating hours with about 80 employees per shirt for solar roof shingle production alone. Tesla’s head of energy operations, Sanjay Shah, stated that Tesla was gearing up for the solar roof side of its business to see “tremendous growth in 2019.” Musk himself tweeted that the first solar roof deployments would begin around summer 2019.
- June 2019: Despite continued delays and earnings losses, Musk tweeted that he hoped to manufacture about 1,000 solar roofs per week by the end of 2019.
- October 2019: Tesla announced the Tesla Solar Roof V3, which featured updates to increase manufacturing and deployment, and reduce prices.
- Late 2020: Tesla experienced some achievements for its solar roofs throughout the year, almost tripling its installations between quarter one and quarter two. In quarter four, Tesla announced that it had “made great progress growing [its] solar roof deployments,” but didn’t provide date to back up its claim.
- April 2021: Tesla Solar Roof customers have continued to experience delays and a lack of transparency from Tesla.
- May 2021: Some customers sued Tesla over unexpected hikes.
- June 2021: electrek confirmed that Tesla’s head of energy operations had left the company after months of rumors.
- October 2021: Tesla expanded solar roof installations to anywhere in the United States.
- November 2021: electrek announced that Solar Roof tiles will be more efficient, have higher capacity, and might be able to be installed over existing roofs.
Tesla Solar Roof specifications: what are you getting?
If you’re interested in installing a Tesla Solar Roof, you’re probably wondering what you’re getting of each solar shingle. We’ll explain some of the specifications of the Solar Roof:
Design
Despite previous announcements about multiple design offerings–including tuscan glass tile, slate glass tile, textured glass tile, and smooth glass tile–the Tesla Solar Roof is only currently available in one shingle design. According to Tesla’s website, each shingle has a dimension of 15 inches by 45 inches, is 5 mm thick, and is made of glass, polymers, fiberglass, and silicon. The shingle is designed to resemble a traditional asphalt shingle.
Warranty
Tesla provides 25-year product, weatherization, and module warranties, comparable to leading solar panel brands. The warranty also guarantees that your Solar Roof will be at least 95 percent of its “Rated Peak Power” at five years following installation and that it will decline by no more than 0.5 percent per year for the following 20 years –essentially guaranteeing 85 percent output in year 25. Its inverter has a 12.5-year warranty, which aligns with warranties for other string inverter brands; however, this warranty is lower than warranties for many microinverters, which are often 20 to 25 years.
How much does the Tesla Solar Roof cost?
With the new complexity categories explained above, it’s a bit difficult to fully estimate the cost of a Tesla Solar Roof. The cost varies significantly depending on whether your roof is “simple” or “complex” and depending on the square footage of your roof. If you have a fairly small – and not too complex – roof that you already need to replace, the price of a Solar Roof will probably be fairly comparable to that of a new asphalt roof installation plus solar panels. However, as you increase the size and/or complexity of your roof, you can expect this number quickly skyrocket.
Should you wait for the Tesla Solar Roof?
Standard solar panel technologies are typically evaluated based on their performance, durability, and warranties. However, Tesla’s lack of transparency makes it difficult to compare to traditional solar panels. Four years after the initial launch of Tesla’s solar roof, the company still hasn’t revealed the shingles’ efficiency and customers are still experiencing long wait times and surprise price increases.
If you’re in dire need of a roof upgrade or if you won’t need a roof upgrade for a while, the Tesla Solar Roof may not be worth your long wait. Solar panels are extremely dependable (and we think they look great, too!). However, if you need to upgrade your roof soon (but not immediately) and your roof isn’t too complex or large, you may be a good candidate for the Tesla Solar Roof. Additionally, if you’re set on the look and have the capital to cover the cost, the system may be the best choice for you, though it may be worth your while to compare the Tesla Solar Roof to other solar roof products.
Tesla’s solar shingles are best suited for new construction
Most existing solar shingle technologies are also known as building-integrated photovoltaics (BIPV) because they are integrated with your existing roof and are a similar size and shape to standard roof tiles. Tesla has created something different. In August 2016, Musk first explained the difference between solar shingles and Tesla’s solar roof: “It’s not a thing on the roof. It is the roof.”
Unlike other solar shingles, Tesla’s roof tiles are designed to completely replace your existing roof (though electrek did recently report that you may soon be able to install them over existing roofs). As a result, the most cost-effective way to install them is when your home is being built, which means that they are best suited for homebuyers who have a say in the design and materials of their newly constructed home. While this doesn’t mean that they can’t be used on existing homes, retrofitting your roof with Tesla solar tiles means removing your existing roof (which Tesla will do for you). As a result, retrofitting your roof with Tesla solar tiles is only practical when your roof is already due to be replaced.
Who are Tesla’s solar roof competitors?
Though the buzz around Tesla’s illustrious roof product has made it appear like it’s a new concept, it is merely the continued repackaging brilliance that some call the “Musk effect.” Development of solar roof tiles and solar shingles has been evolving for many years, and a number of companies have taken a stab at designing a versatile, subtle rooftop solar medium that could be considered a genuine roofing material rather than a module add-on. Here are some of Tesla’s solar roof competitors that offer similar BIPV products:
- Luma – these solar shingles can be integrated with all roofing material and install similarly to traditional metal roofing. Luma markets its product as the only upgradable solar shingle system and boasts an efficiency of 22.1 percent.
- Suntegra – this Northeast solar manufacturer is at the forefront of the solar roof product line. The company hails from New York and began offering its two solar roof products just a few months before the announcement of Tesla’s shingles. Suntegra’s solar shingles are designed to be integrated with low-profile roof materials and are about 15.9 to 17.2 percent efficient. Its solar tiles are slightly less efficient at 13.9 to 15.1 percent and are designed to be integrated with standard flat concrete tile roofs.
- CertainTeed – originally a roofing company, this contractor now offers two solar roof products, with similar integration strategies to Suntegra. Its Apollo II system includes solar shingles to match low-profile roofs, which are about 15.4 percent efficient. CertainTeed’s Apollo Tile II system integrates solar tiles with flat concrete tiles roofs and its tiles are about 16 percent efficient.
It’s important to note that the solar shingles and tiles offered by these companies do still stand out against other roofing material. None can compete with Tesla in terms of aesthetics or subtlety, but they do offer low-profile BIPV solutions that may alleviate aesthetic concerns for some solar shoppers.
Frequently asked questions about the Tesla Solar Roof
While the cost of switching to solar is high, and the news and information surrounding Tesla Solar Roofs can be confusing or nearly obsolete, it’s important to research each product, company, and topic before making a decision. Learn more about the Tesla Solar Roof by reading these commonly asked questions:
Depending on your location, Tesla will send its own installers or contractors to set up your system after purchasing a Solar Roof.
Tesla claims that their shingles are three times stronger than the average roof tile and are built to endure all weather conditions. They have the highest fire rating (Class A) and are built to withstand 110 mph winds (Class F), so you can feel confident even in extreme weather conditions.
Tesla offers a 25-year warranty on the system’s tiles, power, and weatherization. Plus, its inverter has a 12.5-year warranty, giving homeowners peace of mind regarding their investment.
Learn how much solar can save you today before you make your decision
Just as Tesla doesn’t make electric vehicles for the masses, Tesla’s solar roof isn’t feasible for every home. In many ways, the company’s solar roof product is similar to its first electric car. If you are an early adopter of newer technologies, don’t care about price, and are prepared to wait for a product with an uncertain manufacturing timeline, then waiting for Tesla’s solar roof could be the right decision for you.
Additionally, waiting to go solar has its risks, even if you’re interested in the solar roof. The cost of going solar is falling every year, and there are premium solar panels already available today that come with high-efficiency ratings and a sleek black design. If you wait years for the Tesla Solar Roof, you will lose out on years of savings on your electricity bill. You also run the risk of missing out on financial incentives for solar: many state tax credits have already expired and as of now, the federal investment tax credit for solar will be lowered to 22 percent in 2023.
Before you make the decision to wait for the Tesla Solar Roof, use our solar calculator to learn how much you can save today by going solar. If you’re ready to explore the solar options for your home, join the EnergySage Marketplace and get custom quotes from solar installers in your area. You might be surprised by just how much you can save now by installing traditional solar panels on your roof.
Where to buy solar roof tiles
reading on EnergySage
Looking to go solar? Here’s everything you need to know in… Solar shingles: what you need to know in 2023 Best solar panels in 2023: Top products compared Tesla Solar Roof cost vs. solar panels Solar farms: what are they and how do they work?
About Emily Walker
With over five years of experience in environmental science and clean energy, Emily is an expert in solar, battery, and energy management technology and policy. She holds a Master of Science in Environmental Science and Policy from Johns Hopkins University and a Bachelor’s Degree in Environmental Science and Biology from Colby College. Emily is always looking for ways to live her life more sustainably and is currently in the process of electrifying her home.
‘TESLA’ Solar Roof Outline at Giga Texas Now Showing All Letters [VIDEO]
A recent Jeff Roberts drone video shows that Tesla’s Giga Texas has nearly finished the outline of the letters on its solar roof, which spells out “Tesla.” (via @JeffRoberts).
While the solar roof still appears incomplete, the lettering seems to be nearly done with the outline of the letters.
It’s unclear if the solar panels will cover the whole roof or not at this point, though that seems to be the direction Tesla is headed for. One user in the thread noted that the building could fit around 80,000 solar panels on the factory roof.
In addition to the solar roof, the drone video shows a number of other upgrades as Tesla reportedly prepares to produce over 200 Model Y units. Other updates include the casting area, loading docks, the stamping area, multiple updates to general assembly, and many others.
The video also comes just a week after Tesla added a Cyber Helipad to Giga Texas, in addition to new planters in the surrounding areas.
You can see Jeff’s full drone video update, as taken on August 28 at Tesla’s Giga Texas below.
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Tech entrepreneur Elon Musk suggests on his long-delayed solar panels offering is now poised for installation at homes worldwide.
AUSTIN, TX — The Texas roofing industry is abuzz with anticipation after a weekend announcement that the Tesla Solar Roof might be available this year for widespread installation.
Tesla CEO Elon Musk revealed the company plans to offer the roof worldwide later this year in a Sunday tweet: Tesla is ramping up Solar Roof installation across the USA! Musk wrote with palpable excitement, inviting roofers to be poised for installation work. Training will be provided, so no prior experience needed.
He even provided a link for roofers to apply for the work: https://www.tesla.com/solarroofjobs. over, Patch was provided a primer for solar roofers titled Tesla’s ridiculous employee handbooks.
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Tesla is ramping up Solar Roof installation across the USA! Training will be provided, so no prior experience needed. Apply at https://t.co/84BkZvuBn8— Elon Musk (@elonmusk) February 16, 2020
The site Mashable wrote on the development, tracking the rocky road experienced by Tesla in launching its Solar Roof product. Originally introduced in October 2016, the site reported, the Solar Roof underwent multiple revamps before finally going into wider distribution this year.
Tesla seems to have ironed out the kinks now, the CEO inferred via A spokesperson sent Patch some specifications:
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In response to Musk’s announcement, one user asked if the solar roofs would be solely manufactured in Tesla’s New York gigafactory. Initially, yes, but then will make sense to localize closer to customers, Musk responded, likening the plan to that followed in the automotive industry. Pretty much same plan as vehicles.
In what may or may not be related news, Musk set off widespread buzz and speculation earlier this month after changing the location for his account to Austin from California. While Musk’s signature company, Tesla, is based in Palo Alto, California, he’s known to frequently change his social media BIOS to reflect his real-world decisions, some observers noted.
In a separate tweet, Musk posted a graphic with the cryptic caption Giga Texas. furthering speculation on his potential plans to build another Tesla Gigfactory in Central Texas.
Known as much for his intellect as for his showmanship and flair for the dramatic announcement, it’s all anybody’s guess for now as to how much business might be generated in the Lone Star State vis a vis the solar energy products. For now, the tech entrepreneur has raised the roof in terms of rampant speculation about the possibilities.
Solar Roof replaces your existing roof and brings it to life with beautiful solar tiles that can power your home for decades with the energy you produce, the Tesla website reads. Solar Roof replaces your existing roof and brings it to life with beautiful solar tiles that can power your home for decades with the energy you produce.
To see photos of what the Solar Roof product looks like, click here.
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