Image: Tesla
Tesla is ramping up its solar ambitions in the U.S., announcing plans to significantly scale production at its Giga New York facility in Buffalo. As first reported by longtime Tesla watcher Sawyer Merritt (@SawyerMerritt), the company is expanding the factory to an initial solar module capacity of 300 megawatts per year, marking a notable shift in how Tesla sources its solar hardware.
Historically, Tesla has relied heavily on third-party manufacturers for solar panels. That’s now changing. The company is assembling its new solar modules in-house at its Buffalo facility, the same site where it produces components for Solar Roof. The move gives Tesla greater control over its supply chain while allowing it to tap into federal manufacturing incentives tied to domestic production.
This expansion follows Tesla’s recent unveiling of a new generation of U.S.-made solar panels and a redesigned mounting system, which the company says can cut installation times by up to 33%. The new panels deliver 420 watts of power and borrow cascading cell technology from Tesla’s Solar Roof, creating 18 independent power zones that reduce energy losses from partial shading. That design, paired with an all-black, low-profile aesthetic, is aimed at improving both performance and curb appeal.
Just as important is Tesla’s new Panel Mount system. By eliminating traditional rails and clamps, the rail-less design allows panels to latch directly into the mount, reducing labor time and requiring fewer roof penetrations. Installation speed has long been one of the biggest bottlenecks in residential solar, and Tesla is clearly targeting that pain point as it tries to make solar more accessible and cost-effective.
Producing these panels in Buffalo also helps Tesla secure a local supply chain for its growing installer network, while rounding out its end-to-end home energy ecosystem. Homeowners can now pair U.S.-made Tesla solar panels with Powerwall 3, inverters, and the company’s energy software under one roof.
The timing is no coincidence. Tesla’s energy division has quietly become one of the company’s strongest performers, recently posting its fifth consecutive record quarter for gross profit. With demand surging for Megapack, Powerwall, and now faster-to-install solar panels, scaling up Giga New York positions Tesla to capture more of the residential and small commercial solar market.
If Tesla can successfully ramp to — and beyond — that 300 MW annual capacity, Buffalo could once again become a cornerstone of the company’s clean energy strategy.
