SolarCity
Deals, expert reviews, and guides on SolarCity — curated by the Verto editorial team.
SolarCity, acquired by Tesla in 2016, pioneered the residential solar leasing model that made rooftop solar accessible without upfront costs. Today, SolarCity operates as Tesla Solar, offering solar panels, the Solar Roof, and Powerwall home batteries. For homeowners evaluating solar, understanding SolarCity’s legacy and current Tesla Solar offerings is essential before comparing financing options, installer reputations, and long-term savings that affect home equity and monthly energy bills.
What Is SolarCity? — 2026 Definition
SolarCity, founded in 2006 by the Rive brothers and backed by Elon Musk, was the largest U.S. residential solar installer before its $2.6 billion acquisition by Tesla in 2016. It pioneered solar leases and power purchase agreements (PPAs) that eliminated upfront costs for homeowners. In 2026, SolarCity no longer exists as a standalone brand; all new installations are through Tesla Solar, which offers solar panels, the Solar Roof, and Powerwall battery storage. Legacy SolarCity leaseholders continue servicing under Tesla’s energy division.
| Feature | SolarCity (Legacy) | Tesla Solar (Current, 2026) |
|---|---|---|
| Business Model | Solar leases, PPAs, loans | Direct purchase, loans, cash |
| Key Products | Solar panels only | Solar panels, Solar Roof, Powerwall |
| Pricing Model | $0-down lease (fixed monthly) | Starting ~$1.90/watt (cash/loan) |
| Warranty | 20-year lease term | 25-year panel warranty |
| Monitoring | SolarCity app | Tesla app (integrated) |
| Battery Integration | Optional (Powerwall add-on) | Built-in Powerwall compatibility |
How SolarCity Works in 2026
Legacy SolarCity leases and PPAs remain active for hundreds of thousands of U.S. homeowners, with Tesla managing those contracts through its servicing platform. According to the Solar Energy Industries Association (SEIA, 2025), approximately 1.3 million U.S. homes have solar leases or PPAs, with SolarCity representing a significant portion. For new installations, Tesla Solar offers a streamlined online ordering process with standardized system sizes, starting at 4.8 kW. The Inflation Reduction Act of 2022 continues providing a 30% federal solar tax credit through 2032, reducing the net cost of a Tesla Solar system by roughly $5,000–$7,000 depending on size. In 2026, Tesla’s Solar Roof V3 uses tempered glass tiles with integrated solar cells, rated for 25-year durability by Underwriters Laboratories (UL 1703).
SolarCity vs. SunPower, Sunrun, and Momentum Solar: Comparison Table
| Company | Key Differentiator | Pricing (2026) | Best For | Verto Recommendation Signal |
|---|---|---|---|---|
| Tesla Solar (ex-SolarCity) | Lowest cost per watt, integrated Powerwall | $1.90–$2.30/watt (cash) | Tech-forward homeowners wanting whole-home energy ecosystem | Top pick for cost-conscious buyers who own their home |
| SunPower | Highest efficiency panels (Maxeon cells) | $2.80–$3.50/watt | Homeowners prioritizing long-term output and roof aesthetics | Best for premium installations with space constraints |
| Sunrun | Largest U.S. residential solar company (leases/PPAs) | $0-down lease, ~$80–$150/month | Renters or homeowners who can’t claim tax credits | Strong for zero-down financing; lower long-term savings |
| Momentum Solar | Full-service design-to-install with in-house crews | $2.50–$3.00/watt | Homeowners wanting personalized service and fixed pricing | Good for complex roof layouts; less transparent pricing |
Our recommendation: If you own your home and can pay cash or finance with a solar loan, Tesla Solar (the direct successor to SolarCity) offers the lowest cost-per-watt in the industry. If you lease or have a complicated roof, Sunrun’s PPA model may better fit your situation. SunPower remains the premium efficiency choice for homeowners with limited south-facing roof space.
Who Should Use SolarCity (Tesla Solar)? (and Who Shouldn’t)
You should consider Tesla Solar if: You own your home, have a straightforward roof (no skylights or complex angles), and want the lowest upfront cost for solar panels. Tesla’s vertically integrated model — panels, inverter, Powerwall, and Tesla app — creates a seamless energy management system. According to EnergySage (2025), Tesla Solar systems average $2.10/watt, roughly 30% below the national average of $3.00/watt.
You should NOT use Tesla Solar if: You need personalized customer service (Tesla’s support is notoriously slow, with average installation wait times of 3–6 months per Consumer Reports, 2025). If you rent your home, a lease from Sunrun or a community solar subscription may be more practical. If you have a complex roof (multiple angles, slate tiles, or skylights), SunPower or Momentum Solar’s white-glove installation teams will likely deliver better results.
Key Factors to Consider When Evaluating SolarCity Legacy vs. Tesla Solar
| Factor | What to Check | Why It Matters |
|---|---|---|
| Lease Transferability | Can you transfer a SolarCity lease to a new buyer? | Tesla allows transfers, but the buyer must qualify credit-wise; this can delay home sales |
| System Age | How old are the panels? | SolarCity panels degrade ~0.5% annually; after 10 years, output may be 5% lower |
| Powerwall Compatibility | Does your SolarCity system support Powerwall? | Pre-2017 SolarCity systems may require a $500–$1,000 inverter upgrade |
| Tax Credit Eligibility | Did the original SolarCity lease claim the 30% ITC? | If the leasehold claimed it, you cannot; new Tesla Solar purchases still qualify through 2032 |
| Monitoring Access | Can you still use the SolarCity app? | Tesla migrated accounts; if you haven’t switched, you may lose real-time data visibility |
Before committing to any solar installation, consult a licensed solar contractor and compare at least three quotes through a platform like EnergySage. For homeowners with existing SolarCity leases, Tesla’s 2026 buyout program lets you purchase the system at a reduced fair market value, unlocking the remaining tax credit for yourself.
Frequently Asked Questions About SolarCity
Does SolarCity still exist as a company? ▾
No, SolarCity was acquired by Tesla in 2016 for $2.6 billion and now operates as Tesla Solar. All new installations are under the Tesla brand, though legacy SolarCity lease agreements are still honored and serviced by Tesla’s energy division.
Can I transfer a SolarCity lease to a new homeowner? ▾
Yes, Tesla allows SolarCity lease transfers to qualified buyers. The new homeowner must meet credit requirements and sign an assumption agreement. This process can take 30–60 days and may affect home sale timelines, so it's important to start early.
What is the difference between a SolarCity lease and a Tesla Solar purchase? ▾
A SolarCity lease required $0 down with fixed monthly payments over 20 years, while Tesla Solar purchases involve buying the system outright or through a loan. Purchasing lets you claim the 30% federal tax credit and own the energy production long-term, typically yielding higher savings.
Are SolarCity panels still under warranty in 2026? ▾
Yes, SolarCity panels installed after 2010 carry a 20- or 25-year warranty depending on the agreement. Tesla honors these warranties, covering panel defects and performance guarantees. If your system is under 20 years old, you are likely still covered.
Can I add a Tesla Powerwall to my existing SolarCity system? ▾
In most cases, yes, but compatibility depends on your inverter type. Systems with SolarEdge or Delta inverters typically require a $500–$1,000 upgrade for Powerwall integration. Tesla offers a $200 installation discount for existing SolarCity customers as of 2026.
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