Tesla Revives Solar Business, Unveils New In-House Panels Made in Buffalo

Tesla Reignites Solar Ambitions with New In-House Panel Production

Tesla is making a significant comeback in the solar energy sector, announcing the commencement of its own solar panel manufacturing at the Gigafactory New York in Buffalo. This strategic move, with initial customer deliveries slated for Q1 2026, signals a powerful resurgence for a business segment that had been sidelined for several years. The company's renewed focus comes amid shifting market dynamics and government policies.

Renewed Momentum in Solar Energy

After a period of notable decline, during which Tesla even ceased separate reporting of its solar installation volumes, the electric vehicle giant is now aggressively re-engaging with solar technologies. The recent reintroduction of its solar leasing program signals a proactive approach to capitalize on emerging market opportunities. Mike Snyder, Tesla's Vice President of Energy and Charging, highlighted during an investor call that a surge in demand for residential solar systems in the US is largely attributed to "changes in government policy." Specifically, he pointed to the termination of the 30% federal tax credit for private solar installations, a policy enacted under the Trump administration. This regulatory shift, Snyder explained, was a key catalyst for Tesla reviving its solar lease offerings and scaling up production.

The New In-House Solar Panel: A Leap Forward

Complementing this strategic pivot, Snyder confirmed that Tesla has initiated production of a new, in-house manufactured residential solar panel at its Buffalo facility. "We have begun production of the new Tesla residential solar panel at our Buffalo factory, with customer deliveries commencing in the first quarter," he stated. "The panel boasts industry-leading design and shading efficiency metrics, underscoring our commitment to domestic manufacturing." While Tesla has previously alluded to its own solar panel development, past efforts largely relied on manufacturing by Panasonic, or later, rebranding panels from South Korean manufacturer Hanwha. Recent updates to Tesla's website show panel specifications increasing from 405W to 410W. It remains to be seen whether this refers to a rebranded Hanwha model, which closely matches the Qcells Q.PEAK DUO ML-G10+ (410W), or an entirely new proprietary development.

Gigafactory New York: A Transformative Journey

The Buffalo Gigafactory has a complex and evolving history. Originally established as part of Governor Andrew Cuomo's Buffalo Billion initiative to foster high-tech manufacturing, it was intended to produce solar panels from Silevo, a company later acquired by SolarCity, an entity connected to Elon Musk's relatives. Following Tesla's acquisition of SolarCity in 2016, the facility, rebranded as Gigafactory 2, was earmarked for mass production of the revolutionary Tesla Solar Roof. However, the Solar Roof never achieved widespread adoption, leaving the factory underutilized for extended periods. The partnership with Panasonic for solar cell production at Gigafactory 2 also dissolved. Subsequently, Tesla repurposed the facility for assembling Supercharger components and housing a team for manual data labeling crucial for Autopilot AI development. This diversification was instrumental in Tesla fulfilling its commitment to create over 1,460 jobs in Buffalo. In 2024, the company announced a significant $500 million investment to house its Dojo supercomputer, designed to process vast amounts of video data from Tesla's fleet for AI training in autonomous driving systems. Demonstrating long-term confidence, Tesla extended its lease on the Buffalo plant through 2034.

Strategic Implications and Consumer Benefits

Tesla's renewed investment in domestic solar panel manufacturing holds significant promise. It could potentially reduce the United States' reliance on imported solar components, thereby strengthening domestic supply chains. Simultaneously, it offers consumers more diverse and potentially more reliable options for adopting clean energy solutions. This strategic timing is crucial, as it aligns with the impending expiration of federal tax incentive programs at the end of the year, presenting a final window of opportunity for Americans to install solar systems with substantial cost reductions. To facilitate this, Tesla continues its collaboration with EnergySage, a platform dedicated to helping consumers connect with reputable contractors, secure competitive pricing, and receive personalized solar proposals online.