Tesla Eyes Texas for First Large-Scale US Solar Factory Under Project Crystal Sun

Tesla is weighing a major bet on domestic solar manufacturing, with planning documents outlining a vertically integrated factory in Fort Bend County near Richmond, Texas. Internally called Project Crystal Sun, the proposed facility would occupy roughly 1,234 hectares and, if built, would represent the first large-scale US plant to produce solar panels through a complete cycle — from ingot growth and wafer slicing all the way to finished modules.

PV Magazine noted that the plans call for this full-cycle production model, which marks a significant departure from the US industry’s norm. The vast majority of existing American capacity involves assembling modules from imported cells; cell manufacturing itself stood at under 15 GW domestically at the start of 2026, compared with roughly 60 GW of module-assembly capacity.

Tesla’s filing allocates $8.6 billion for manufacturing equipment and movable property. A key incentive in the package is an agreement to limit real estate taxes for ten years, running from 2029 through 2038. The company projects the fully realised facility would create 9,712 permanent jobs.

Construction is tentatively scheduled for 2026–2028, with commercial output targeted for the first quarter of 2029. However, no final decision has been taken: Tesla is simultaneously evaluating a site in another state, and securing local tax incentives remains a decisive factor in the final site selection.

The plant’s capacity figure was not included in the filing. Tesla’s leadership has previously stated a longer-term domestic production target of 100 GW annually, though that figure refers to a broader company goal rather than this specific project.

Source: PV Magazine