Solar panel tariffs

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U.S. Solar Tariffs 2025: Rising Costs and the Shift to Domestic

In April 2025, the U.S. solar industry is navigating significant changes due to newly imposed federal U.S Solar Tariffs. These tariffs average 37% on imported solar panels and 47% on

New tariffs on solar cells could make domestic panels more costly

Why new tariffs on solar cells could make domestic panels more costly The Biden administration''s taxes target Asian countries where Chinese producers moved after an earlier

FAQs 6

Is the solar industry insulated from tariffs?

Although the cost to install solar in the United States is higher than elsewhere in the developed world, the industry continues to grow in the U.S. The good news is that there has been significant investment in solar manufacturing in the U.S., so the industry is somewhat insulated from the impact of tariffs.

Why do solar panels have a 25% tariff?

For example, 25% tariffs on steel and aluminum are felt not only by racking suppliers but also solar panel manufacturers as frames are typically made of aluminum. Outside of cells, frames are the single most expensive sub-component in a solar module, so a 25% duty may increase the cost by a few cents per watt on American-made solar modules.

Are US solar panels at risk from China's tariffs?

US-manufactured solar panels, which use upstream material from China, might see the largest cost increases given the steeper duty rates and a lack of supply chain outside of China. Battery Energy Storage Systems (BESS) are at even higher risk of substantial price increases due to tariffs, given China’s control over the BESS supply chain.

Why did Trump impose tariffs on solar panels?

The first Trump administration made enforcing tariffs a key part of its trade policy. In 2018, Trump imposed Section 201 tariffs on solar panels imported from foreign countries, aiming to bolster American solar manufacturers. While American solar panel manufacturing did see an expansion, installation costs for homeowners escalated as a result.

How will tariffs affect the solar industry?

Imported solar panels will likely receive price increases due to the new tariffs, which may affect pricing of the entire US solar industry. Even though our solar equipment is not directly affected by the proposed tariffs, the overall market may see price adjustments.

What are China's new tariffs on solar products?

The newly increased tariffs on imports from China, effective as of September 27, 2024, specifically target products vital to the solar industry: Solar cells and modules: Tariffs have doubled, increasing from 25% to 50%. Lithium-ion batteries: For electric vehicles, these batteries now face a tariff of 25%, up from 7.5%.