How SolarCity Works (Now Part of Tesla Energy)
Solar Panel Installation Services
SolarCity was originally a company focused on designing, financing, and installing solar energy systems for residential, commercial, and government customers. The company would assess a home or building’s roof, energy usage, and sunlight exposure, then install solar panels tailored to that setup.Zero-Upfront Cost Model
One of SolarCity’s most revolutionary ideas was offering solar panel systems with no upfront cost. Instead of customers buying the system outright, they could:
urban landscape, landmarks, and solar panels.
Leasing or Power Purchase Agreements
Lease the solar panels and pay a fixed monthly fee, or
Sign a Power Purchase Agreement (PPA) to pay only for the electricity generated.
This made solar power more affordable and accessible to average homeowners.
Energy Production and Monitoring
- Once installed, the solar panels convert sunlight into electricity using photovoltaic (PV) cells. This power is used by the household or business directly, reducing the need to pull electricity from the grid. Any excess electricity can be sent back to the grid (called net metering) or stored in a battery system like the Tesla Powerwall.
SolarCity also provided online monitoring tools, allowing customers to track their energy production and consumption in real time.
Shanghai urban landscape, landmarks, and solar panels.
Integration with Tesla (Post-Acquisition)
- In 2016, Tesla acquired SolarCity to create a unified clean energy company. Now it operates under Tesla Energy, combining solar power generation with Tesla battery storage products and even electric vehicle (EV) charging.
Tesla Energy now:
Designs and installs solar panels and Solar Roofs (roof tiles that double as solar collectors).
Offers Powerwall for home energy storage and Megapack for utility-scale storage.
Enables customers to power their homes, charge EVs, and reduce grid dependence—all through clean, renewable energy.
Virtual Power Plants (VPPs)
- In some regions, Tesla has introduced the concept of virtual power plants, where homes with solar panels and Powerwalls are connected to form a decentralized power network. These VPPs can supply energy back to the grid during peak demand, improving grid stability and earning money for participants.
In Shorts:
SolarCity’s model was built on accessible solar installations, innovative financing, and customer-friendly service, and it laid the foundation for Tesla’s larger goal: a fully sustainable energy ecosystem powered by solar and supported by batteries.