The companies have finalized to manufacture photovoltaic (PV) cells and modules at the site, which is scheduled to commence production in the summer of 2017.
Production of the PV modules at the site is expected to ramp to 1GW by 2019.
As part of the deal, Panasonic, which already manufactures battery cells for Tesla's electric vehicle and grid storage products, will cover capital expenses involved in the production.
On the other hand, Tesla has made a long-term purchase commitment from Panasonic.
The high-efficiency PV cells and modules manufactured at the site will be used to produce solar panels in the non-solar roof products.
Panasonic said in a statement: “When production of the solar roof begins, Tesla will also incorporate Panasonic's cells into the many kinds of solar glass tile roofs that Tesla will be manufacturing.”
Tesla recently acquired solar installer SolarCity, which is currently developing 1GW-plus PV panel manufacturing facility in Buffalo.
Panasonic will also work with Tesla for the development of PV next generation technology at SolarCity’s facility in Fremont, California, US.
Panasonic said: “The collaboration extends the established relationship between Tesla and Panasonic, which includes the production of electric vehicle and grid storage battery cells at the Tesla Gigafactory.”
Image: Panasonic and Tesla will commence manufacturing solar cells and modules in New York from 2017. Photo: courtesy of dan/FreeDigitalPhotos.net.