Tesla has agreed to pay $6 million to resolve a class action lawsuit regarding its Solar Roof product. The suit was filed due to unexpected price increases for the Solar Roof home energy system.

The Tesla Solar Roof transforms the entire roof into a solar array, eliminating the need for traditional solar panels. This design offers both the protection of a traditional roof and the ability to harness solar energy. The Solar Roof was created in 2016, although Tesla did not begin production on a large scale until 2020.

Following the launch of the Solar Roof, customers entered contracts for installation. However, Tesla raised its prices significantly in April 2021, and customers with pending orders were required to pay these new higher prices. One plaintiff had his Solar Roof bill skyrocket from $72,000 to an astonishing $146,000.

According to CNBC, Tesla ultimately increased solar installation prices three times in 2021. It also began requiring customers to purchase the Powerwall storage system, an additional expense.

The settlement agreement revealed that around 8,636 customers were affected by the sudden price hikes, leading to over 6,300 contract cancelations. However, Tesla honored 1,656 contracts at the original quoted price. An additional 57 customers whose installations are ongoing will have their Solar Roofs installed at the initial price.

The settlement totals $6,080,000, with $863,600 allocated to an automatic payment fund, $2,220,000 for a new contract roof installation fund, and $1,406,400 for an out-of-pocket loss fund.

Despite the setbacks with the Solar Roof, Tesla’s overall solar deployments, including panels and solar roof tiles, reached 67 megawatts in the first quarter of 2023. This represented a 40% increase compared to the first quarter of 2022.