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Tesla doubles down on Solar options after record deployment

(Credit: Tesla)

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Tesla has rolled out new solar panel options by providing four new sizes and new pricing points.

Tesla has made several modifications to its solar panel program in 2020, with the most recent appearing in mid-June. The sustainable energy company rolled out a new program over the summer that included new, higher-powered solar panel systems at more affordable pricing.

Now, Tesla has made further revisions to the program, adding four new sizing options that are more versatile and allow for a more customized fit to any sized home.

Credit: Tesla

In June, Tesla offered four new sizes for its solar systems that had more efficiency and lower pricing.

  • 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

Tesla has added four new systems that are not labeled with typical “sizing” descriptions. Now, they are labeled with their power capacity in kW. The pricing options listed below apply to California customers and vary in other states. New sizes are indicated with bold lettering.

  • 4.08 kW – $8,200, $6,396 after incentives
    • Produces 16-21 kWh daily
  • 6.12 kW – $12,300, $9,594 after incentives
    • Produces 23-31 kWh daily
  • 8.16 kW – $16,400, $12,792 after incentives
    • Produces 31-42 kWh daily
  • 10.2 kW – $20,500, $15,990 after incentives
    • Produces 39-52 kWh daily
  • 12.24 kW – $24,600, $19,188 after incentives
    • Produces 27-63 kWh daily
  • 14.28 kW – $28,800, $22,386 after incentives
    • Produces 55-73 kWh daily
  • 16.32 kW – $32,800, $25,584 after incentives
    • Produces 63-84 kWh daily
  • 18.36 kW – $36,900, $28,782 after incentives
    • Produces 70-94 kWh daily

The new, more well-rounded options provide a fit that will cater to more households. The previous options were sufficient enough, but as Tesla’s solar deployment continues to grow, the company may have needed to adapt by providing more sizing options moving forward.

Tesla’s Q3 Earnings Update letter detailed the company’s skyrocketing demand for solar panels. Energy storage deployments reach a record 759 MWh in Q3, and Powerwall demand is continuing to grow. With Solar Panels, Tesla cited that its low-cost systems are “starting to have an impact.” Total solar deployments continued to grow and more than doubled in Q3 thanks to Tesla’s Solar Roof and Solar Panels.

The main reason for Tesla’s continuing demand growth in its solar energy deployments comes down to pricing. Tesla Solar is 30% less expensive than the U.S. average, thanks to its focus on reducing soft costs. This included eliminating wages for sales representatives and allowing customers to buy their own solar packages online. Additionally, soft costs, which are non-component costs of the system, can attribute to higher pricing when systems are being ordered. Instead of having permits, inspections, and salespeople to pay, Tesla did away with these and slashed costs significantly.

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Now that more sizing options are available, customers can get a solar panel outfitting from Tesla that is catered to the size of their home instead of buying a system that is more than big enough. This will reduce the possibility of a homeowner having to buy a system that is too big for their home and will save the customer money.

Of course, Tesla Solar can also be loaned for as little as $47 a month, and customers can also use the Subscription option, which runs as low as $65 a month.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

Energy

Tesla inks multi-billion-dollar deal with LG Energy Solution to avoid tariff pressure

Tesla has reportedly secured a sizable partnership with LGES for LFP cells, and there’s an extra positive out of it.

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Credit: Tesla

Tesla has reportedly inked a multi-billion-dollar deal with LG Energy Solution in an effort to avoid tariff pressure and domesticate more of its supply chain.

Reuters is reporting that Tesla and LGES, a South Korean battery supplier of the automaker, signed a $4.3 billion deal for energy storage system batteries. The cells are going to be manufactured by LGES at its U.S. factory located in Michigan, the report indicates. The batteries will be the lithium iron phosphate, or LFP, chemistry.

Tesla delivers 384,000 vehicles in Q2 2025, deploys 9.6 GWh in energy storage

It is a move Tesla is making to avoid buying cells and parts from overseas as the Trump White House continues to use tariffs to prioritize domestic manufacturing.

LGES announced earlier today that it had signed a $4.3 billion contract to supply LFP cells over three years to a company, but it did not identify the customer, nor did the company state whether the batteries would be used in automotive or energy storage applications.

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The deal is advantageous for both companies. Tesla is going to alleviate its reliance on battery cells that are built out of the country, so it’s going to be able to take some financial pressure off itself.

For LGES, the company has reported that it has experienced slowed demand for its cells in terms of automotive applications. It planned to offset this demand lag with more projects involving the cells in energy storage projects. This has been helped by the need for these systems at data centers used for AI.

During the Q1 Earnings Call, Tesla CFO Vaibhav Taneja confirmed that the company’s energy division had been impacted by the need to source cells from China-based suppliers. He went on to say that the company would work on “securing additional supply chain from non-China-based suppliers.”

It seems as if Tesla has managed to secure some of this needed domestic supply chain.

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Energy

Tesla Shanghai Megafactory produces 1,000th Megapack for export to Europe

The Shanghai Megafactory was able to hit this milestone less than six months after it started producing the Megapack. 

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Credit: Tesla Asia/X

Tesla Energy has announced a fresh milestone for its newest Megapack factory. As per the electric vehicle maker, the Shanghai Megafactory has successfully produced its 1,000th Megapack battery. 

The facility was able to hit this milestone less than six months after it started producing the grid-scale battery system. 

New Tesla Megapack Milestone

As per Tesla Asia in a post on its official accounts on social media platform X, the 1,000th Megapack unit that was produced at the Shanghai Megafactory would be exported to Europe. As noted in a CNEV Post report, Tesla’s energy products are currently deployed in over 65 countries and regions globally. This allows Tesla Energy to compete in energy markets that are both emerging and mature.

To commemorate the 1,000th Megapack produced at the Shanghai Megafactory, the Tesla China team posted with the grid-scale battery with celebratory balloons that spelled “Megapack 1000.” The milestone was celebrated by Tesla enthusiasts on social media, especially since the Shanghai Megafactory only started its operations earlier this year.

Quick Megafactory Ramp

The Shanghai Megafactory, similar to Tesla’s other key facilities in China, was constructed quickly. The facility started its construction on May 23, 2024, and it was hailed as Tesla’s first entry storage project outside the United States. Less than a year later, on February 11, 2025, the Shanghai Megafactory officially started producing Megapack batteries. And by March 21, 2025, Tesla China noted that it had shipped the first batch of Megapack batteries from the Shanghai plant to foreign markets.

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While the Shanghai Megafactory is still not at the same level of output as Tesla’s Lathrop Megafactory, which produces about 10,000 Megapacks per year, its ramp seems to be quite steady and quick. It would then not be surprising if Tesla China announces the Shanghai Megafactory’s 2,000th Megapack milestone in the coming months.

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Energy

Tesla launches first Virtual Power Plant in UK – get paid to use solar

Tesla has launched its first-ever Virtual Power Plant program in the United Kingdom.

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Credit: Tesla Energy | X

Tesla has launched its first-ever Virtual Power Plant program in the United Kingdom. This feature enables users of solar panels and energy storage systems to sell their excess energy back to the grid.

Tesla is utilizing Octopus Energy, a British renewable energy company that operates in multiple markets, including the UK, France, Germany, Italy, Spain, Australia, Japan, New Zealand, and the United States, as the provider for the VPP launch in the region.

The company states that those who enroll in the program can earn up to £300 per month.

Tesla has operated several VPP programs worldwide, most notably in California, Texas, Connecticut, and the U.S. territory of Puerto Rico. This is not the first time Tesla has operated a VPP outside the United States, as there are programs in Australia, Japan, and New Zealand.

This is its first in the UK:

Tesla is not the only company that is working with Octopus Energy in the UK for the VPP, as it joins SolarEdge, GivEnergy, and Enphase as other companies that utilize the Octopus platform for their project operations.

It has been six years since Tesla launched its first VPP, as it started its first in Australia back in 2019. In 2024, Tesla paid out over $10 million to those participating in the program.

Tesla VPP program in California hits new capacity milestone

Participating in the VPP program that Tesla offers not only provides enrolled individuals with the opportunity to earn money, but it also contributes to grid stabilization by supporting local energy grids.

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