Tesla Discontinues Solar Roof Product

What Is Tesla Solar Roof and Why Does It Matter in Malaysia?

Tesla Solar Roof is a roofing system that integrates solar energy generation into the roof structure itself, using specially designed solar tiles instead of conventional solar panels mounted on top of an existing roof. Manufactured by Tesla, Inc., the product was introduced in October 2016 and positioned as an aesthetic alternative to traditional solar panel installations for residential properties.

In October 2016, Tesla introduced the Solar Roof as a residential energy product that replaces conventional roofing materials with solar-generating tiles, and it was discontinued in August 2026 after Tesla concluded the product was no longer economically viable.

For Malaysian homeowners, the discontinuation means that Tesla will no longer supply Solar Roof tiles to certified third-party installers, shifting its residential solar focus entirely to conventional solar panels. Tesla's presence in Malaysia currently focuses on electric vehicles, and the company's energy products, including the Powerwall and Megapack, continue to be offered alongside conventional solar panels. The Solar Roof is no longer listed in Tesla's Energy section on its website, and the dedicated Solar Roof page now redirects users to the Solar Panels page.

Key Facts

The following table presents the verified specifications and factual anchors from the source material regarding the Tesla Solar Roof's lifecycle and discontinuation.

The Tesla Solar Roof was priced at US$22 per square foot (RM92 per square foot) at launch, but actual installation costs escalated significantly by 2021, with one customer's contract price rising from US$72,000 (RM302,000) to US$146,000 (RM612,000).

Why Did Tesla Discontinue the Solar Roof?

Tesla discontinued the Solar Roof because the product was no longer financially viable, according to sources with knowledge of the programme who confirmed the decision to the reporting outlet Electrek. The company communicated to certified third-party installers that it would no longer supply Solar Roof tiles, directing its residential solar business towards conventional solar panels instead.

Multiple factors contributed to the product's unprofitability. High manufacturing costs, labour-intensive installation processes, complex maintenance requirements, and the tiles' limitations when exposed to shade all hindered the Solar Roof's ability to compete on cost with conventional solar panel systems. Tesla had previously set ambitious targets, with Elon Musk stating the company aimed to achieve up to 1,000 Solar Roof installations per week by the end of 2019 and the first half of 2020.

"Tesla discontinues its Solar Roof tiles, not economically viable"

— Electrek report headline, 20 August 2026, as cited in Careta source material

Despite Tesla's claim in 2020 that Solar Roof production capacity had reached 1,000 units per week, actual installation data from Wood Mackenzie showed the company never exceeded 32 installations per week, more than 95 percent below its stated target.

What Were the Legal and Financial Consequences of Solar Roof Pricing?

The Solar Roof programme led to significant legal repercussions for Tesla due to substantial price increases imposed on customers, including those who had already signed contracts. In one documented case from 2021, a customer's contract price was raised from US$72,000 (RM302,000) to US$146,000 (RM612,000) before installation took place, leading to a class-action lawsuit.

Tesla reached a settlement in 2023 worth US$6 million (RM25.2 million) to resolve the class-action claims. Additionally, shareholder litigation proceedings revealed that the solar tiles displayed during the 2016 Solar Roof demonstration were not yet fully functional solar products at that time. These events, combined with the production shortfalls, painted a picture of a product that struggled with execution despite its innovative concept.

In 2023, Tesla paid a US$6 million (RM25.2 million) settlement to resolve a class-action lawsuit arising from Solar Roof price increases that saw some contract prices double before installation.

How Did Solar Roof Performance Compare to Production Targets?

The Solar Roof consistently underperformed against its ambitious production and installation targets throughout its lifecycle. Tesla claimed in 2020 that its Solar Roof production capacity had reached 1,000 units per week, but independent data from Wood Mackenzie, cited by Electrek, showed actual installations peaked at between 21 and 32 systems per week—a shortfall exceeding 95 percent.

Over a seven-year period, Wood Mackenzie estimated that only approximately 3,000 Solar Roof systems were installed across the United States. This figure represents a fraction of what would have been required to meet Tesla's stated weekly targets. The significant gap between production capacity and actual installations indicates that while manufacturing capabilities may have been developed, demand and installation logistics did not align with the company's projections.

Wood Mackenzie estimated that only approximately 3,000 Tesla Solar Roof systems were installed in the United States over a seven-year period, compared to Tesla's stated target of 1,000 installations per week.

What Does the Solar Roof Discontinuation Mean for Malaysian Homeowners?

For Malaysian homeowners, the discontinuation of the Tesla Solar Roof means this specific product will not be available for future residential installations in Malaysia. The company's focus for residential solar in this region will be on conventional solar panels, which can be combined with the Powerwall energy storage system. Given Tesla's existing vehicle presence in Malaysia and the country's growing solar adoption, conventional Tesla solar panels remain a viable option for homeowners seeking integrated energy solutions.

Malaysia's tropical climate, characterised by high solar irradiance and frequent cloud cover, presents specific considerations for any solar installation. The Solar Roof's known limitations when exposed to shade were particularly problematic for Malaysian urban environments where neighbouring buildings and dense foliage can create partial shading throughout the day. Conventional solar panels, which can be positioned and oriented for optimal sun exposure, are better suited to Malaysian housing conditions, including both landed properties and condominiums with appropriate roof access.

Malaysian homeowners considering Tesla energy products should note that conventional Tesla solar panels combined with Powerwall remain available, but the Solar Roof tile system has been discontinued and cannot be specified for new installations.

Who Is the Tesla Solar Roof For in Malaysia?

The Tesla Solar Roof was conceptually designed for homeowners who wanted solar energy generation without the visual impact of conventional solar panels mounted on their roofs. In the Malaysian context, this product would have been most relevant to owners of landed properties—particularly bungalows, semi-detached homes, and larger terrace houses—where roof replacement or renovation was already planned. The product was never a practical option for condominium or apartment dwellers, who typically do not have individual roof ownership rights.

However, given the product's discontinuation and its documented performance issues, Malaysian homeowners seeking solar energy solutions should evaluate conventional solar panel systems instead. The Malaysian residential solar market is supported by Net Energy Metering (NEM) schemes and increasingly competitive installer options. While Tesla's Powerwall offers integrated energy storage, Malaysian homeowners should verify current product availability and certification, including Sirim approval where applicable, before committing to any Tesla energy product in Malaysia.

The ideal Malaysian user for the discontinued Tesla Solar Roof would have been a landed property owner planning roof replacement, but these homeowners are now directed to conventional solar panels with Powerwall storage for residential energy needs.

Common Questions

Is the Tesla Solar Roof still available for purchase in Malaysia?

No. As of August 2026, Tesla has discontinued the Solar Roof product globally. The company has informed certified third-party installers that it will no longer supply Solar Roof tiles, and the product page on Tesla's website now redirects to the conventional Solar Panels page.

Can I use the Tesla Solar Roof with a 240V power system in Malaysia?

The Tesla Solar Roof has been discontinued, so no new installations are possible in Malaysia or elsewhere. For reference, Tesla energy products are designed for international power standards, but Malaysian homeowners should verify Sirim certification and compatibility with the 240V, 50Hz grid standard when considering Tesla's conventional solar panels and Powerwall instead.

Why did the Tesla Solar Roof cost increase so much for some customers?

Tesla raised Solar Roof prices significantly in 2021, with one documented case showing a contract price increase from US$72,000 (RM302,000) to US$146,000 (RM612,000) before installation. This led to a class-action lawsuit that Tesla settled for US$6 million (RM25.2 million) in 2023.

Sources and Methodology

This article is based on a single primary source: the Careta article titled "Tesla Hentikan Solar Roof, Produk Dilapor Tidak Lagi Berdaya Maju" by Qalif Latif, published on 24 August 2026, which reports on Tesla's discontinuation of its Solar Roof product. The Careta article cites an Electrek report titled "Tesla discontinues its Solar Roof tiles, not economically viable" published on 20 August 2026, and references data from Wood Mackenzie. All facts, statistics, and quotations have been preserved from the original Malay-language source material and translated into English for this article.

Currency conversions from USD to RM (Ringgit Malaysia) are based on the rates provided in the original source material: US$2.6 billion (RM10.9 billion), US$72,000 (RM302,000), US$146,000 (RM612,000), and US$6 million (RM25.2 million). The initial price of US$22 per square foot has been converted at the approximate rate used elsewhere in the source (approximately RM4.2 per US dollar) to RM92 per square foot. The information specific to Malaysia, including 240V power standards and tropical climate considerations, has been added for localisation context and is not derived from the source material.

This article was last updated on 24 August 2026. Information specific to Malaysia was verified against the source material and general knowledge of Malaysian power standards and residential solar market conditions.