Tesla Will Start Production of Solar Panels in New York
American solar panel giant Tesla has announced that production has started at Gigafactory New York. The company’s facility in Buffalo will begin shipping panels to customers in Q1 2026. Even with headwinds from federal policy changes, Tesla is pushing forward with its solar expansion.
The company noted that it had “seen a surge in residential solar demand” despite the One Big Beautiful Bill Act cutting funding for the Federal Solar Tax Credit after December 31st, 2025.
Is It Important That Tesla is Making Solar Panels in New York?
Tesla’s latest announcement is crucial for several reasons:
- The Buffalo Gigafactory is proof that Tesla is manufacturing its own solar panels. Previously, it was contracting production through Panasonic. In-house production means more control over costs, specifications, and quality.
- Recent news surrounding solar has been slightly negative, especially with the Federal Solar Tax Credit being effectively locked out for customers who start planning their solar installations today. The fact that one of the biggest solar companies is actually expanding its production capabilities is a good sign for homeowners and the wider industry.
- It’s a timely reminder that even though we lost some solar tax credits, a residential solar panel installation can stand on its own. Tax credits made solar cheaper, but even without federal benefits, solar panels still generate savings and provide a return on investment to homeowners.
It’s also great news for New York’s economy. Many of the nation’s largest solar panel manufacturing facilities are in Georgia, Texas, Arizona, and California, yet some of America’s highest electricity costs are in the Northeast. A stronger solar industry in New York brings production and the economic benefits closer to families on Long Island.
Is a Long Island Solar Installation Worth it in 2025?
Yes, absolutely, and it’s imperative that you start planning your home solar installation now.
The federal solar tax credit is ending on December 31st. Contact us today to begin the pre-planning process if you want the best chance of making this deadline. The federal credit is worth 30% of your solar installation bill. Additionally, there are still other credits and incentives available.
- New York State still offers a 25% solar tax credit, capped at $5,000. This can significantly offset the real cost of switching to home solar. Unlike the federal credit, this one is guaranteed and won’t be going away any time soon.
- There are direct incentives available that will come off the top of your bill, reducing what you owe.
- Solar financing is still an excellent option. You can access an interest-free period based on your state tax credit.
Power Solutions is the most experienced solar panel installer on Long Island. We have connected thousands of families and businesses to clean and affordable solar.
The Benefits of Making Your Home a Solar Home
A solar panel installation will give you energy independence and help you save money in the decades to come.
- Solar panels reduce what you owe to PSEG Long Island.
- You will get credits for any electricity you export to the grid.
- Solar helps to offset electric heating costs and other power-hungry appliances.
- Solar can pay for itself. The average system has a payback period of 7 to 10 years.
- Solar panels last for at least 25 years, providing a strong return on investment.
Power Solutions can help you to dramatically reduce your energy spending. In addition to solar panels, we also install battery energy storage systems, including the Tesla Powerwall.
Get a free home solar estimate today with no risk, or call us at (631) 348-0001 to begin your energy savings evaluation. We will provide all the data you need to decide if solar is right for you. We provide the information. You make the choice.





