Panasonic spends $256 million on Tesla solar panel factory

Tesla just announced that it struck a deal with Panasonic to produce photovoltaic cells at the Buffalo, NY solar panel factory scheduled to go online in the summer of 2017. Started by SolarCity, the factory was purchased by Tesla in November in a $2.6 billion all-stock deal. 

A Tesla solar roof. Image source: Tesla.

Since October, Tesla has been teasing the announcement, but the electric vehicle and stationary battery maker said that the deal would fall through unless investors approved the SolarCity purchase. Now, according to Reuters, Panasonic is investing $256 million into the factory.

In a blog post, Tesla wrote that “Panasonic will cover required capital costs in Buffalo and Tesla is making a long-term purchase commitment from Panasonic.” According to the blog post, the factory will produce Panasonic’s high-efficiency PV cells and modules. Currently, it’s unclear if these solar cells will be the same as the HIT (Heterojunction with Intrinsic Thin layer) solar cells that Panasonic currently produces. Panasonic’s solar panels use several thin layers of silicon, a two-sided cell design, and heat-resistant cell structures to trap and produce energy more efficiently.

This past June, Green Tech Media reported that SunPower broke rooftop solar efficiency records with panels that captured 24.1% of the Sun energy they were exposed to. The two runners-up were Panasonic’s panels with 22.5% conversion efficiency and SolarCity’s panels with 22.04% conversion efficiency.

Tesla noted that Panasonic’s experience in solar panel production is the result of a years-long push to focus on corporate clients rather than on low-margin consumer electronics. The two companies are working to supply batteries for Tesla’s upcoming Model 3, the automaker’s first mass-market car. Panasonic is also the exclusive supplier of batteries to Tesla’s Model S and Model X.