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![Tesla-SolarCity plant at Riverbend in South Buffalo. [Source: Derek Gee/Buffalo News]](https://www.teslarati.com/wp-content/uploads/2016/11/Tesla-SolarCity-factory-riverbend-buffalo-new-york-aerial-560x600.jpg)
Energy
Tesla Solar Roof tile production begins at Gigafactory 2, customer installs soon to follow
Tesla has begun production of its highly-anticipated Solar Roof tiles from the company’s Gigafactory 2 facility in Buffalo, NY. According to an email sent by Tesla, production of the photovoltaic glass roof tiles began last month and the company expects first customer installations to begin in the following months.
The announcement made by Tesla follows a series of production delays, since CEO Elon Musk first unveiled the company’s glass roof tiles more than a year ago. Tesla initially expected the rollout of the solar shingles to begin in 2017, with the manufacturing of the first two types of tiles — smooth and textured — to start during summer. Due to unforeseen delays, however, the mass production and installation of the shingles was ultimately pushed back, first to late 2017, and later, to 2018.
Over the past few months, several sightings of Solar Roof installations were observed by the Tesla community. These installations, however, turned out to be exclusive only to select employees of the California-based electric car and energy company. The glass solar roof tiles were being manufactured in Tesla’s Fremont factory at the time, a facility that is, while capable, unable to produce tiles on the same pace and scale as Gigafactory 2.
For the most part, Tesla has been fairly silent about the progress of its Solar Roof production. There were signs that a ramp-up was happening, such as solar cell manufacturer Panasonic opening new jobs for product expansion, as well as our report on a Tesla patent featuring an adhesive that can conduct electricity through the solar tiles. With Tesla’s recent announcement, however, the timeline for Solar Roof installations has become significantly clearer.
If any, the fact that the Solar Roofs are now being manufactured in Gigafactory 2 means that the photovoltaic tiles are rolling off the production line faster than ever. This ramp-up seems to be well within Tesla CEO Elon Musk’s expectations. Musk, after all, stated in a 2016 interview that he believes the 1.2 million-square-foot Buffalo, NY facility is capable of potentially producing up to 10 gigawatts of solar products every year.
RELATED: How much will a Tesla Solar Roof cost on my home?
Bloomberg New Energy Finance analyst Hugh Bromley believes that the Solar Tiles’ appeal will not only be limited to the United States, as other countries such as Australia might prove to be lucrative markets for the Silicon Valley-based energy company.
“It may actually do well in overseas markets where solar-photovoltaic is cheap, and homeowners are used to paying a premium for building materials and cars — such as Australia,” Bromley said in an email, according to a Bloomberg report.
- Tesla lifestyle reimagined by Miysis studio 3d
- Tesla teased a photo of its employee Solar Roof installation on the 2017 Second Quarter Update Letter
- Elon Musk unveils Tesla solar roof tiles [Source: Dennis Pascual]
Tesla’s Solar Roof tiles are quite unique in the way that they are both functional and aesthetically pleasing. Developed in collaboration with SolarCity, the Solar Tiles look almost indistinguishable from conventional roof tiles despite featuring a full-fledged solar panel. Being constructed from tempered glass, the tiles are pretty durable too, capable of surviving impacts that would otherwise compromise traditional roof materials like terracotta and slate. Paired with Tesla’s Powerwall 2 unit, the Solar Roof has the potential to give customers true independence from conventional power grids.
If you’re on the market for a solar roof or considering the installation of solar panels for your home or business, consider getting a customized solar cost estimate from a local installer through our partner at UnderstandSolar.
Energy
Tesla’s new Megablock system can power 400,000 homes in under a month
Tesla also unveiled the Megapack 3, the latest iteration of its flagship utility scale battery.

Tesla has unveiled the Megablock and Megapack 3, the latest additions to its industrial-scale battery storage solution lineup.
The products highlight Tesla Energy’s growing role in the company, as well as the division’s growing efforts to provide sustainable energy solutions for industrial-scale applications.
Megablock targets speed and scale
During the “Las Megas” event in Las Vegas, Tesla launched Megablock, a pre-engineered medium-voltage block designed to integrate Megapack 3 units in a plug-and-play system. Capable of 20 MWh AC with a 25-year life cycle and more than 10,000 cycles, the Megablock could achieve 91% round-trip efficiency at medium voltage, inclusive of auxiliary loads.
Tesla emphasized that Megablock can be installed 23% faster with up to 40% lower construction costs. The platform eliminates above-ground cabling through a new flexible busbar assembly and delivers site-level density of 248 MWh per acre. With Megablock, Tesla is also aiming to commission 1 GWh in just 20 business days, or enough to power 400,000 homes in less than a month.
“With Megablock, we are targeting to commission 1 GWh in 20 business days, which is the equivalent of bringing power to 400,000 homes in less than a month. It’s crazy. How are we planning to do that? Like most things at Tesla, we are ruthlessly attacking every opportunity to save our customers time, simplify the process, remove steps, (and) automate as much as we can,” the company said.
Megapack 3 is all about simplicity
The Megapack 3 is Tesla’s next-generation utility battery, designed with a simplified architecture that cuts 78% of connections compared to the previous version. Its thermal bay is drastically simplified, and it uses a Model Y heat pump on steroids. The battery weighs about 86,000 pounds and holds 5 MWh of usable AC energy. Tesla engineers incorporated a larger battery module and a new 2.8-liter LFP cell co-developed with the company’s cell team.
The Megapack 3 is designed for serviceability, and it features easier front access and no roof penetrations. About 75% of Megapack 3’s total mass is battery cells, with individual modules weighing as much as a Cybertruck. It’s also tough, with an ambient operating temperature range from -40C to 60C. This should allow the Megapack 3 to operate optimally from the coldest to the hottest regions on the planet.
Production is set to begin at Tesla’s Houston Megafactory in late 2026, with planned capacity of 50 GWh per year. Additional supply will come from Tesla’s 7 GWh LFP facility in Nevada, which is expected to open in 2025, as well as with third-party partners.
Energy
Tesla Energy is the world’s top global battery storage system provider again
Tesla Energy captured 15% of the battery storage segment’s global market share in 2024.

Tesla Energy held its top position in the global battery energy storage system (BESS) integrator market for the second consecutive year, capturing 15% of global market share in 2024, as per Wood Mackenzie’s latest rankings.
Tesla Energy’s lead, however, is shrinking, as Chinese competitors like Sungrow are steadily increasing their global footprint, particularly in European markets.
Tesla Energy dominates in North America, but its lead is narrowing globally
Tesla Energy retained its leadership in the North American market with a commanding 39% share in 2024. Sungrow, though still ranked second in the region, saw its share drop from 17% to 10%. Powin took third place, even if the company itself filed for bankruptcy earlier this year, as noted in a Solar Power World report.
On the global stage, Tesla Energy’s lead over Sungrow shrank from four points in 2023 to just one in 2024, indicating intensifying competition. Chinese firm CRRC came in third worldwide with an 8% share.
Wood Mackenzie ranked vendors based on MWh shipments with recognized revenue in 2024. According to analyst Kevin Shang, “Competition among established BESS integrators remains incredibly intense. Seven of the top 10 vendors last year struggled to expand their market share, remaining either unchanged or declining.”

Chinese integrators surge in Europe, falter in U.S.
China’s influence on the BESS market continues to grow, with seven of the global top 10 BESS integrators now headquartered in the country. Chinese companies saw a 67% year-over-year increase in European market share, and four of the top 10 BESS vendors in Europe are now based in China. In contrast, Chinese companies’ market share in North America dropped more than 30%, from 23% to 16% amid Tesla Energy’s momentum and the Trump administration’s policies.
Wood Mackenzie noted that success in the global BESS space will hinge on companies’ ability to adapt to divergent regulations and geopolitical headwinds. “The global BESS integrator landscape is becoming increasingly complex, with regional trade policies and geopolitical tensions reshaping competitive dynamics,” Shang noted, pointing to Tesla’s maintained lead and the rapid ascent of Chinese rivals as signs of a shifting industry balance.
“While Tesla maintains its global leadership, the rapid rise of Chinese integrators in Europe and their dominance in emerging markets like the Middle East signals a fundamental shift in the industry. Success will increasingly depend on companies’ ability to navigate diverse regulatory environments, adapt to local market requirements, and maintain competitive cost structures across multiple regions,” the analyst added.
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.

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.
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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