Tesla and Panasonic have finalised an agreement to begin the manufacturing of photovoltaic cells and modules at Tesla’s factory in Buffalo, New York State. The high-efficiency PV cells and modules will be used to produce solar panels for non-solar roof products. When production of solar roof products begins, Tesla will also incorporate Panasonic's cells into the various kinds of solar glass tile roofs that it plans to make. All of them will integrate with Tesla’s energy storage products, Powerwall and Powerpack. Production of the first PV modules will begin in summer 2017, and will ramp to 1 GW of module production by 2019.

As Tesla and Panasonic begin production, Buffalo will continue to expand Tesla’s American manufacturing base. Panasonic will also work with Tesla on developing PV next generation technology at SolarCity’s facility in Fremont, CA.

As part of the agreement, Panasonic will cover required capital costs in Buffalo and Tesla is making a long-term purchase commitment from Panasonic. 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.