Tesla Brings Solar Panel Production Back to the U.S.

After a few quiet years in the solar game, Tesla is flipping the switch again, literally. The company announced that it has started producing a new residential solar panel at its Gigafactory in Buffalo, New York, with deliveries expected in early 2026. This marks Tesla’s most serious return to the solar business since the early SolarCity days. The timing? Convenient. U.S. demand for solar installations is rising fast after recent policy changes, and Tesla doesn’t want to be left in the dark.

Tesla’s VP of Energy and Charging, Mike Snyder, said during the company’s Q3 earnings call that there’s been “a surge in residential solar demand in the U.S. due to policy changes.” Those changes include the federal government ending the long-standing 30% tax credit for residential solar at the end of the year, which means homeowners now have a short window to cash in on those savings. Snyder also confirmed that Tesla has begun producing its new panels in Buffalo:

“We began production of our Tesla residential solar panel in our Buffalo factory, and we will be shipping that to customers starting Q1. The panel has industry-leading aesthetics and shade performance, and demonstrates our continued commitment to U.S. manufacturing.”

Tesla has been down this road before. Years ago, the company partnered with Panasonic to produce solar panels at the same facility, before switching to rebranded models from South Korea’s Hanwha. This time, Tesla says the panels are designed and built in-house signaling a more serious, long-term approach to the energy side of its business.

The Buffalo factory has had a complicated journey. It was born from New York’s “Buffalo Billion” initiative in 2013 to create clean-tech jobs and revive the local economy. Under SolarCity and later Tesla, the plant shifted focus multiple times from solar roof tiles that never quite took off, to building Supercharger components, and even housing Tesla’s data labeling team for Autopilot development. In 2024, Tesla announced a $500 million investment to add a Dojo Supercomputer cluster at the same site, used to process vehicle data for Full Self-Driving AI. Now, solar panels are returning to Buffalo, bringing the project full circle to its original mission of clean energy production.

For homeowners, Tesla’s renewed solar focus could mean a more cohesive energy ecosystem from rooftop power generation to Powerwalls and EV charging. It’s also happening at a pivotal time. The expiration of the federal solar tax credit has triggered a rush in installations across the country. For anyone still considering solar, this may be the last chance to take advantage of those incentives.

To make things easier, platforms like EnergySage help homeowners compare quotes from pre-vetted installers, including those who work with Tesla Solar and Powerwalls. It’s a simple, no-pressure way to secure competitive pricing and make sure the installation is done right.

Tesla’s move to bring solar manufacturing back to the U.S. hints at a broader ambition: to control more of its clean energy ecosystem, from the panels on your roof to the car in your driveway. Whether it’s a strategic revival or a long-term shift, one thing is clear Tesla is once again betting on solar power to fuel its next chapter.

Source: Electrek