Tesla announced that it is reviving solar leasing after years of allowing its solar business to slowly decline over the last few years.
The company had even stopped reporting solar installations.
Through the acquisition of SolarCity, Tesla became one of the biggest residential solar installers in 2016.
Beyond being a solar installer, SolarCity was very much a financial company. It offered solar financing and leasing services.
In 2019, Tesla expanded solar leasing into what it described as a “solar subscription” or “solar rental” where Tesla installs and owns the solar system on a customer’s home and then sells the power it generates at a discounted rate on the electricity from the grid.
However, Tesla’s solar deployment started to decline during those years, and the company killed its solar subscription service in 2021.
By 2023, we had reported on how Tesla was phasing out its solar installation business, and in 2024, Tesla ceased reporting its quarterly solar energy deployments.
Today, Tesla announced that it is bringing back solar leasing, or more specifically, solar + storage leasing, as the company sells solar panels with its own home energy storage product: Powerwall.
Here are the new Tesla solar and storage lease terms:
| Feature | Solar Panels Only, Solar + Powerwall | Powerwall Only |
|---|---|---|
| Lease Term | 25 years | 12 years |
| Annual Escalator | 3% | 3% |
| Upfront Cost 1 | $600 ($100 deposit + $500 progress payment) | $100 deposit |
| Payments Start | Permission to operate | Permission to operate |
| Buyout Available | After year five (price outlined in contract) | After year five (price outlined in contract) |
| End of Term Options | 1. Renew for five years at a new rate. 2. Buy out the system at fair market value. 3. Tesla removes your system (removal cost applies). |
1. Renew for five years at a new rate. 2. Buy out the system at fair market value. 3. Tesla removes your system (removal cost applies). |
| Availability Guarantee | 95% system availability throughout the term of your lease (calculated every two years) | 95% system availability throughout the term of your lease (calculated every two years) |
I went and requested a quote on Tesla’s website for a home in California with a $300 monthly electric bill and the company recommended this system for $198 a month:
Here’s the breakdown of the cost:
It does look like the homeowner could achieve savings within the first few months as Tesla takes cares of almost the entire upfront cost.
However, financially speaking, it is generally better in the long term to buy the system, whether with cash or through financing.
Electrek’s Take
It is interesting to see Tesla getting back into solar at this time. As sad as it sounds, I think the company is trying to take advantage of the upcoming phase-out of solar incentives.
Just as the end of the EV tax credit resulted in a surge of demand for EVs, which helped Tesla boost its sales this quarter, I think the automaker anticipates a similar surge in solar demand over the next year and wants to capitalize on it after basically abandoning solar for more than a year.
That said, it’s indeed not a bad time to go solar, but there’s a rush and it’s essential to do your research.
While Tesla is re-entering the solar market, there are now numerous competitive installers, and it’s a great way to lower your electricity bills. If you want to make sure you’re finding a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage. EnergySage is a free service that makes it easy for you to go solar – whether you’re a homeowner or renter. They have hundreds of pre-vetted solar installers competing for your business, including those who install Tesla Solar and Powerwalls, ensuring you get high-quality solutions and save 20 to 30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and you share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links. More.
![Genesis GV90 gets the royal green treatment in latest appearance [Images]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2026/02/Genesis-GV90-green-EV.jpeg?resize=1200%2C628&quality=82&strip=all&ssl=1 "Genesis GV90 gets the royal green treatment in latest appearance [Images]")
![Hyundai has a new baby EV in the works: Is this our first look at the IONIQ 1? [Images]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2026/02/Hyundai-IONIQ-1-EV-front.jpeg?resize=1200%2C628&quality=82&strip=all&ssl=1 "Hyundai has a new baby EV in the works: Is this our first look at the IONIQ 1? [Images]")
