Tesla’s solar business experienced a significant decline last year, as per its Q4 2023 earnings report. The company reported a 36% drop in solar deployments to 223 megawatts (MW) in 2023, down from 348 MW the previous year. This happened even as the United States experienced a record year for adding solar capacity.
The last quarter of 2023 saw a 59% year-on-year decrease in Tesla’s solar deployments to 41 MW. The company attributed the decline to high interest rates but offered no further explanation. The downturn could be partly due to Tesla’s shift from being an installer to a supplier of solar installations.
While the solar sector has been struggling, Tesla’s energy generation and storage business is flourishing. The company reported a 125% increase in energy storage deployments in 2023, with total deployments reaching 14,724 megawatt hours (MWh).
Despite the decline in its residential solar business, Tesla emphasized the significant role of commercial and home batteries in transitioning to renewable energy sources. These batteries store clean energy for later use and can help communities to manage extreme weather conditions by reducing peak demand and providing backup power during outages.
