Energy
Tesla updates its solar panel program with more powerful systems at lower pricing
Tesla has rolled out a new solar panel program that includes higher power solar systems at pricing that’s more affordable than ever before.
The update comes on heels of its recent solar incentive program that was aimed at stimulating consumer adoption of its solar panel systems through a continuous push to reduce the cost of ownership. In mid-2019, Tesla rolled out its solar subscription program that enabled solar customers to pay an affordable monthly fee for obtaining solar for their residence. With pricing as low as $65 a month, Tesla’s solar subscription program reduces the cost barrier of entry significantly, considering a solar panel system for the average 2,500 square foot house would normally cost between $18,000 and $20,000
Now, the company has rolled out more powerful solar system sizing and at price that’s more affordable than its previously smaller-sized systems.
In the past, Tesla offered four sizes for its solar systems.
- Small – 3.78 kW – $10,500
- Produces an average of 14-19 kWh per day
- Medium – 7.56 kW – $19,500
- Produces an average of 29-39 kWh per day
- Large – 11.34 kW – $29,000
- Produces an average of 43-58 kWh per day
- X-Large – 15.12 kW – $37,500
- Produces an average of 58-77 kWh per day
The new systems offer revised sizes with more efficient energy usage. The incentive prices below apply to California residents and vary in different states.
- Small – 4.08 kW – $10,000, $7,400 after incentives
- Produces 11-15 kWh daily
- Medium – 8.16 kW – $16,000, $11,840 after incentives
- Produces 23-29 kWh daily
- Large – 12.24 kW – $23,500, $17,390 after incentives
- Produces 33.44 kWh daily
- X-Large – 16.32 kW – $30,000, $22,200 after incentives
- Produces 45-58 kWh daily
Comparing the two systems and their prices is proof that the new panels offer more bang for your buck. The sizes have increased while the cost of each system has decreased.
After rolling out the subscription programs last year, Tesla introduced a price match guarantee in May. The addition of this feature to Tesla’s Solar business made it possible for customers to get the best possible price on the company’s solar panels, matching quotes from other providers in a resident’s area.
In Q1 2020, Tesla’s energy business thrived despite setbacks from the COVID-19 pandemic. The company stated that its 100,000th Powerwall was installed during the first quarter of 2020 in its Q1 Update Letter. The company also saw an increase in cross-selling within the energy business as “more than 40% of the residential solar customers opted for at least one Powerwall.”
Tesla Solar Roof also saw significant growth, and Giga New York reached a 4 MW weekly production rate, enough for 1,000 homes.
The advancements in Tesla’s Solar Energy business create opportunities for customers to utilize more efficient panels that cost less out of pocket. Combine the more cost-efficient panels with Tesla’s rental or subscription options, and powering a home with 100% clean energy from the sun is affordable and environmentally responsible.
Check out the new Tesla’s Solar Panels on its Energy website.
Energy
Tesla Lathrop Megafactory celebrates massive Megapack battery milestone
The Tesla Megapack is the backbone of Tesla Energy’s battery deployments.
The Tesla Lathrop Megafactory recently achieved a new milestone. As per the official Tesla Megapack account on X, the Lathrop Megafactory has produced its 15,000th Megapack 2 XL battery.
15,000 Megapack Batteries
Tesla celebrated the milestone with a photo of the Lathrop Megafactory team posing with a freshly produced Megapack battery. To commemorate the event, the team held balloons that spelled out “15,000” as they posed for the photo.
The Tesla Megapack is the backbone of Tesla Energy’s battery deployments. Designed for grid-scale applications, each Megapack offers 3.9 MWh of energy and 1.9 MW of power. The battery is extremely scalable, making it perfect for massive energy storage projects.
More Megafactories
The Lathrop Megafactory is Tesla’s first dedicated facility for its flagship battery storage system. It currently stands as the largest utility-scale battery factory in North America. The facility is capable of producing 10,000 Megapack batteries every year, equal to 40 GWh of clean energy storage.
Thanks to the success of the Megapack, Tesla has expanded its energy business by building and launching the Shanghai Megafactory, which is also expected to produce 40 GWh of energy storage per year. The ramp of the Shanghai Megafactory is quite impressive, with Tesla noting in its Q1 2025 Update Letter that the Shanghai Megafactory managed to produce over 100 Megapack batteries in the first quarter alone.
Tesla Energy’s Potential
During the first quarter earnings call, CEO Elon Musk stated that the Megapack is extremely valuable to the energy industry.
“The Megapack enables utility companies to output far more total energy than would otherwise be the case… This is a massive unlock on total energy output of any given grid over the course of a year. And utility companies are beginning to realize this and are buying in our Megapacks at scale,” Musk said.
Energy
Tesla Megapacks powers the xAI Colossus supercomputer
Tesla Megapacks step in to stabilize xAI’s Colossus supercomputer, replacing natural gas turbines. Musk’s ventures keep intertwining.
Tesla Megapack batteries will power the xAI Colossus supercomputer in Memphis to ensure power stability. The collaboration between Tesla and xAI highlights the synergy among Elon Musk’s ventures.
The artificial intelligence startup has integrated Tesla Megapacks to manage outages and demand surges, bolstering the facility’s reliability. The Greater Memphis Chamber announced that Colossus, recently connected to a new 150-megawatt electric substation, is completing its first construction phase. This transition addresses criticism from environmental justice groups over the initial use of natural gas turbines.
“The temporary natural gas turbines that were being used to power the Phase I GPUs prior to grid connection are now being demobilized and will be removed from the site over the next two months.
“About half of the operating turbines will remain operating to power Phase II GPUs of xAI until a second substation (#22) already in construction is completed and connected to the electric grid, which is planned for the Fall of 2025, at which time the remaining turbines will be relegated to a backup power role,” the Chamber stated.
xAI’s rapid development of Colossus reflects its ambition to advance AI capabilities, but the project has faced scrutiny for environmental impacts. The shift to Megapacks and grid power aims to mitigate these concerns while ensuring operational continuity.
The Megapack deployment underscores the collaboration among Musk’s companies, including Tesla, SpaceX, Neuralink, and The Boring Company. Tesla appears to be the common link between all of Musk’s companies. For example, The Boring Company built a tunnel in Giga, Texas. In addition, Musk has hinted at a potential collaboration between the Tesla Optimus Bot and Neuralink. And from January 2024 to February 2025, xAI invested $230 million in Megapacks, per a Tesla filing.
Tesla Energy reported a 156% year-over-year increase in Q1 2025, deploying 10.4 GWh of storage products, including Megapacks and Powerwalls. Tesla’s plans for a new Megapack factory in Waller County, Texas, which is expected to create 1,500 jobs in the area, further signal its commitment to scaling energy solutions.
As xAI leverages Tesla’s Megapacks to power Colossus, the integration showcases Musk’s interconnected business ecosystem. The supercomputer’s enhanced stability positions xAI to drive AI innovation, while Tesla’s energy solutions gain prominence, setting the stage for broader technological and economic impacts.
Energy
Tesla Energy celebrates one decade of sustainability
Tesla Energy has gone far since its early days, and it is now becoming a progressively bigger part of the company.
Tesla Energy recently celebrated its 10th anniversary with a dedicated video showcasing several of its milestones over the past decade.
Tesla Energy has gone far since its early days, and it is now becoming a progressively bigger part of the company.
Tesla Energy Early Days
When Elon Musk launched Tesla Energy in 2015, he noted that the business is a fundamental transformation of how the world works. To start, Tesla Energy offered the Powerwall, a 7 kWh/10 kWh home battery system, and the Powerpack, a grid-capable 100 kWh battery block that is designed for scalability. A few days after the products’ launch, Musk noted that Tesla had received 38,000 reservations for the Powerwall and 2,500 reservations for the Powerpack.
Tesla Energy’s beginnings would herald its quiet growth, with the company later announcing products like the Solar Roof tile, which is yet to be ramped, and the successor to the Powerwall, the 13.5 kWh Powerwall 2. In recent years, Tesla Energy also launched its Powerwall 3 home battery and the massive Megapack, a 3.9 MWh monster of a battery unit that has become the backbone for energy storage systems across the globe.
Key Milestones
As noted by Tesla Energy in its recent video, it has now established facilities that allow the company to manufacture 20,000 units of the Megapack every year, which should help grow the 23 GWh worth of Megapacks that have already been deployed globally.
The Powerwall remains a desirable home battery as well, with more than 850,000 units installed worldwide. These translate to 12 GWh of residential entry storage delivered to date. Just like the Megapack, Tesla is also ramping its production of the Powerwall, allowing the division to grow even more.
Tesla Energy’s Role
While Tesla Energy does not catch as much headlines as the company’s electric vehicle businesses, its contributions to the company’s bottom line have been growing. In the first quarter of 2025 alone, Tesla Energy deployed 10.4 GWh of energy storage products. Powerwall deployments also crossed 1 GWh in one quarter for the first time. As per Tesla in its Q1 2025 Update Letter, the gross margin for the Energy division has improved sequentially as well.
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