Tesla’s solar business originated from its 2016 acquisition of SolarCity, a residential solar financing and installation company. After scaling back SolarCity operations and ceasing solar deployment reporting, Tesla shifted focus to its energy storage products, primarily the Powerwall and Megapack. The Powerwall 3, launched recently, has reintroduced Tesla to the solar market through its dual-purpose inverter, which supports both solar panels and battery storage.
EnergySage’s report indicates that in the second half of 2024, Tesla became the most quoted battery brand in the U.S., capturing 63% of the marketplace share. Its integrated inverter also made Tesla the second-most quoted inverter brand. The national battery attachment rate for solar systems reached a record 45% in the same period, with Tesla’s growth contributing to lower solar and storage costs. In major markets like California and Texas, most residential solar quotes included batteries, with Powerwall 3 frequently cited due to its inverter integration.
The report notes: “With batteries increasingly being added to solar systems—the national battery attachment rate jumped to 45% in H2 2024, an all-time high—Tesla’s growth was a key driver of the low storage and solar prices seen on EnergySage.” The Powerwall 3’s ability to serve as both a battery and solar inverter has reduced costs for combined solar and storage systems, making it a preferred choice for homeowners.
The rise of Powerwall 3 has impacted competitors, notably Enphase, a leading solar inverter manufacturer. Enphase’s U.S. market share dropped from 73% in 2022 to 53% in 2024, partly due to Tesla’s competitive pricing and integrated solution. While Powerwall 3 is not the least expensive battery on a per kWh basis—Panasonic and EG4 batteries were cheaper in late 2024—its cost advantage shines when replacing both a battery and a solar inverter.
However, EnergySage reported a growing trend in 2025 of customers seeking alternatives to Powerwall 3, influenced by concerns unrelated to product performance. The company is monitoring whether these preferences, alongside potential equipment shortages, will affect Tesla’s market share moving forward.
Tesla’s Powerwall 3 continues to drive the adoption of combined solar and storage systems in the U.S., supporting the growing demand for residential energy storage and contributing to more affordable clean energy solutions nationwide.
