Dive Brief:

• Tesla CEO Elon Musk, along with collaborator SolarCity, revealed an integrated solar roof and battery product for residential energy storage at an event in Los Angeles last week. The product mirrors conventional roof design with glass photovoltaic tiles in common roof colorways while eliminating external mounted panels, Utility Dive reported. Musk said the company's product is expected to cost less than a typical roof.

• The 7kW, 14 kWh Powerpack 2.0 battery is an offering of Tesla Energy, Tesla's planned merger with SolarCity that is still subject to approval from shareholders. The battery pack will be priced at $5,500 and sold through a single point of contact for sale, installation and service — much like Tesla's dealer model for its electric automobiles — if the company continues to follow Musk's July 2016 Master Plan, Part Deux. 

• Musk has not revealed the exact pricing of the roof, though he says it will eventually be a less-expensive option than a traditional one. He also has not detailed how power contracts with consumers could be fashioned or the effects of the PV roof on homeowner's mortgage, insurance and property values. 

Dive Insight:

Tesla's solar roof adds to a preexisting, though not extensive, list of integrated solar technologies that have been adapted for the residential market, many of which have not been successful, GreenTech points out. The publication's Eric Wesoff writes that although the design of Tesla's integrated photovoltaics is impressive, the company should be looking to work with existing construction companies and homebuilders, rather than going solo.

Despite difficulties in commercializing integrated solar roofs, the number of homes that rely on some sort of solar energy has grown from 30,000 in 2006 to 400,000 in 2013. There are roughly half a million homes with some type of solar technology today, and the U.S. Department of Energy estimates that by 2020, that figure could rise to 3.8 million. Builders are contributing to the trend, as many of the top U.S. homebuilders offer buyers the opportunity to incorporate some form of PVs, usually rooftop solar panels, into new construction projects. 

While it's true Tesla may find some difficulty in selling its integrated PV roof and battery storage pack to market, the National Renewable Energy Laboratory found that homes equipped with solar sold 20% faster and for 17% more than the neighboring houses that did not have the amenity. Homeowners can also take advantage of a federal and state tax credits, as well as utility rebates, as they consider the cost of installing PVs. 

The integrated solar system is a product of Tesla Energy, and whether shareholders view the solar roof offering as an exciting new extension of Tesla’s business or a risk in an unfamiliar market is still unclear. Shareholders vote on the merger later this month.