Tesla New research from Wood Mackenzie shows that only 3,000 Solar Roof systems have been installed in the United States since the technology was touted seven years ago.
This installation rate falls well short of Tesla’s guidance and ambition for what was formerly called “solar glass” roof tiles. Wood Mackenzie said the company aims to manufacture 1,000 solar roofs per week in the second half of 2019 and install 1,000 per week in the first half of 2020.
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The report provides a glimpse into Tesla CEO Elon Musk’s struggle to integrate his solar energy business into an electric vehicle company after acquiring SolarCity in 2016.
According to Wood Mackenzie, the average weekly number of Tesla solar roof installations will reach just 21 by 2022. According to the study, Tesla had the highest number of installs in the US in the first quarter of last year, averaging 32 units per week.
Musk first touted a single-style solar panel in October 2016 in an attempt to garner shareholder enthusiasm for Tesla’s $2.6 billion acquisition of SolarCity. It was later revealed that the shingles he showed at his marketing event weren’t even a working prototype. Musk invested significant capital in his SolarCity and was chairman of the board while leading Tesla and SpaceX.
Finally a group of Tesla shareholders sued Tesla and Musk over the deal. But attorneys for the shareholders on Wednesday gave opening arguments for an appeal in the Delaware Supreme Court.
Shareholders argued that Tesla’s acquisition of SolarCity amounted to a bailout and was driven by Musk because his personal wealth and reputation were at stake. Musk denies that he pressured Tesla’s board to go ahead with the SolarCity deal. Had he lost, Musk could have forced him to pay out more than $2 billion, CNBC previously reported.
While Tesla’s solar roof efforts have struggled, the company’s conventional solar panels are gaining some traction in the market.
Traditional solar panel installations shrunk significantly from 2016 to 2020, but volumes are rising with broader growth in the residential solar industry, Mackenzie Wood researchers told CNBC via email. Tesla has installed a conventional solar panel system with a capacity of 156 megawatts in 2021 and 248 megawatts in 2022, researchers say.
The estimated capacity of 3,000 solar roof systems installed in the United States is about 30 megawatts.
Tesla originally intended to manufacture all of its solar roof tiles, but instead sourced solar glass from a Chinese supplier. AlmadenResidential roofing company GAF Energy will begin manufacturing and selling competing solar shingles to residential roofers in 2022.
According to Wood Mackenzie, Tesla solar roofs will command less than 0.03% of the approximately 5 million new roofs built in the US in 2022.
Tesla did not respond to a request for comment.
clock: Why Tesla struggled in the solar business
