{"id":11892,"date":"2025-04-04T06:32:21","date_gmt":"2025-04-04T06:32:21","guid":{"rendered":"https:\/\/www.solar.com\/learn\/?p=11892"},"modified":"2025-04-29T16:24:16","modified_gmt":"2025-04-29T16:24:16","slug":"how-tariffs-might-impact-solar","status":"publish","type":"post","link":"https:\/\/www.solar.com\/learn\/how-tariffs-might-impact-solar\/","title":{"rendered":"How Will Tariffs Impact the Cost to Go Solar in 2025?"},"content":{"rendered":"

Updated April 29, 2025:<\/strong><\/span> In addition to the \u201cReciprocal Day\u201d tariffs (see updates below<\/a>), the solar industry learned the final determination on rates for the anti-dumping, countervailing duty (AD\/CVD) case affecting crystalline silicon cells and solar panel imports from Cambodia, Malaysia, Vietnam and Thailand in late April.\u00a0<\/span><\/p>\n

While the headlines scream shockingly high rates of over 3,500% for some manufacturers from Cambodia, the reality is much more nuanced. Many of the very high rates were anticipated by manufacturers and, since the case was filed by Q Cells and a consortium of other companies in April 2024, manufacturers in the cross hairs of high rates have been steadily reducing exports from those countries and factories. For example, the country of Cambodia exported over 650 MW of solar panels in August 2024, but in February 2025 those exports dropped to just over 100kW \u2014 a dramatic reduction.\u00a0<\/span><\/p>\n

While the AD\/CVD case will have company-specific impacts, the broader supply\/demand picture for the US solar industry remains healthy, thanks to significant reshoring investments and capacity outside the targeted countries.<\/span><\/p>\n

Solar.com’s analysis shows that if the President maintains his IEEPA tariffs, this will have a far greater impact to pricing than the AD\/CVD case, despite the headlines.\u00a0<\/span><\/p>\n

Unsure how to proceed with going solar in the face of extraordinary headlines and tariff uncertainty? <\/strong>Reach out to a solar.com Energy Advisor<\/a>, who will help you navigate the process in a consultative and low-pressure environment.<\/p>\n

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<\/a>Updated April 9, 2025<\/strong><\/span>:<\/strong><\/span> Today, the President announced a 90-day change in the reciprocal tariffs, moving all countries except China to a 10% universal tariff rate. China, in turn, was increased to 125%.\u00a0<\/span><\/p>\n

What does this mean for solar components? A price increase is still coming, although likely moderated from where it was standing a week ago. Most solar panels will likely see a cost increase of 3 to 4 cents\/watt and increased balance of system costs contributing another 2 to 3 cents\/watt. 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.\u00a0<\/span><\/p>\n

Battery Energy Storage Systems (BESS) are at even higher risk of substantial price increases due to tariffs, given China\u2019s control over the BESS supply chain. Previously communicated 20 – 30% price increases might go up even more.\u00a0<\/span><\/p>\n

So what\u2019s a homeowner to do? If you\u2019ve been on the fence about going solar, now is undoubtedly the best time to do it<\/strong>. While the President might further delay or retract tariffs, locking in a contract at the current rates will likely preserve the lowest cost layers we\u2019ll see in 2025.\u00a0<\/span><\/p>\n

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Updated April 4, 2025<\/span><\/strong>:<\/span><\/strong> Through analyzing different supply chains, the solar.com team is flagging that Battery Energy Storage Systems (BESS) will likely see a significant cost increase with the new tariffs, given the percentage of battery materials that come from China. Unlike the solar industry, which has moved a lot of production outside of China, most battery components come from China. So even if the final assembly is done in the US, the imported parts will face the new round of tariffs.<\/span><\/p>\n

It\u2019s too early to quantify what the new pricing layers will look like, but we\u2019ll update this article as data becomes available.\u00a0<\/span><\/p>\n

One other note is that the guidance to Customs for collecting these duties indicates that products loaded on boats destined for the US\u00a0 prior to the date the duties are set to start<\/em> will be exempt from these tariffs. What does this mean? Between inventory in warehouses and in transit to the US, there is a small window to go solar before price increases start to take effect.\u00a0<\/span><\/p>\n

One solar.com qualified contractor already reached out to solar.com to let the team know their pricing will change for contracts originated beginning May 1, and we expect others will follow suit quickly.\u00a0<\/span><\/p>\n

Want to lock in your pre-tariff savings potential? Start your solar today.<\/a><\/p>\n

 <\/p>\n

Updated April 3, 2025:<\/strong><\/span> On April 2, the President announced \u201creciprocal tariffs\u201d on almost all imports to the United States (with exclusions for items like pharmaceuticals, semiconductors, and certain other items). The base tariff rate is 10%, and, for countries with a trade imbalance with the US, the tariffs seemingly correlate to 50% of the trade deficit.\u00a0<\/span><\/p>\n

These base duties go into effect on April 5 and the higher rates will be implemented on April 9. <\/span>Preliminary calculations by the solar.com experts anticipate a net 10 cents\/watt average increase in the cost of solar hardware. Imported panels will see an increased tariff rate of 3-6 cents\/watt on average, and balance of system components will also increase by another 3-5 cents\/watt.\u00a0<\/span><\/p>\n

Although there have been significant investments in US manufacturing over the last two years in the solar industry, these factories still rely on imported upstream components, so there\u2019s really no way to escape these new tariffs.\u00a0<\/span><\/p>\n

So, should you wait to go solar? There is currently inventory in US warehouses that was brought in before the tariffs. Going solar immediately after the announcement will likely allow you to purchase pre-tariff inventory and retain those savings. Over time, as those inventories are depleted, the question is whether the tariff rates will drop or the cost to install will go down?\u00a0<\/span><\/p>\n

As of April 2025, we\u2019re not seeing anything on the horizon that will lower installation costs at a rate greater than utility increases. Going solar, even after reciprocal tariffs, still represents one of the best ways for homeowners to control their costs by locking in their electricity prices.<\/span><\/p>\n

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How do tariffs impact the residential solar industry?<\/h2>\n

There\u2019s a lot of talk about tariffs these days and as consumers are considering going solar it\u2019s important to understand what the impact of tariffs might be for the solar industry.<\/span><\/p>\n

Believe it or not, solar in the United States is somewhat synonymous with tariffs. For more than a decade the industry has been dealing with allegations of predatory trade practices by Chinese companies. 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.\u00a0<\/span><\/p>\n

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. But not every solar component is made here, so there is some cost exposure.\u00a0<\/span><\/p>\n

Do solar panels come from China for the US market?<\/b><\/h3>\n

There are virtually no imports of silicon solar cells or panels from China to the U.S. due to hefty duties in the form of Section 301,\u00a0 Section 201, and anti-dumping\/countervailing duty tariffs. It\u2019s not important to understand what all of those mean; just know that it\u2019s cost-prohibitive to send solar panels from China to the U.S.\u00a0<\/span><\/p>\n

Ever since these large duties were placed on exports from China, many Chinese solar companies have moved production to Southeast Asia. Until 2024, roughly 80% of solar panels installed in the U.S. were manufactured in Cambodia, Malaysia, Thailand, and Vietnam. Because of this shift in production, a consortium of US companies filed a trade case in 2024 against those four countries, and, although the case is still being investigated, preliminary duties are substantial.\u00a0<\/span><\/p>\n

Tariffs and U.S. Solar Manufacturing<\/b><\/h3>\n

According to the Solar Energy Industries Association (SEIA), there is currently 50 Gigawatts of solar panel manufacturing in the U.S., enough to meet annual demand. If something is made here that means there\u2019s no tariff, right? Well, not exactly. Because a lot of the sub-components used to make solar panels and other solar equipment are imported they\u2019re subjected to duties. 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.<\/span><\/p>\n

It’s worth noting that solar modules make up less than 20% of the total cost of installing a home solar system<\/a>. So, a slight increase in module prices may not feel as substantial in the context of the whole project.<\/p>\n

The broader and more expansive tariffs become it\u2019s increasingly likely that these costs will impact the price of components used for solar construction. While reshoring manufacturing is the ultimate anecdote to tariffs these are capital and time-intensive projects that can\u2019t be done overnight.\u00a0<\/span><\/p>\n

Who pays for tariffs on solar?<\/b><\/h3>\n

The simple answer is the importer of record pays for the tariffs. They can either choose to absorb the duty or pass it along to the ultimate buyers. Specifically in the solar industry due to years of intense price competition, no manufacturer has the ability to absorb the tariffs. This means we can anticipate continued price increases for solar components.<\/strong>\u00a0<\/span><\/p>\n

Is now a good time to go solar?<\/b><\/h3>\n

Yes! Consumers who are considering going solar should get competitive price quotes. The faster your project is quoted the faster you can lock in pricing before new tariffs take effect. And, with the risk of the 30% tax credit going away<\/a>, waiting could cost you several thousand dollars.\u00a0<\/span><\/p>\n

Ready to receive competitive quotes and a custom design proposal? Get started today.<\/span><\/p>\n<\/gs-injectable>\n","protected":false},"excerpt":{"rendered":"

Updated April 29, 2025: In addition to the \u201cReciprocal Day\u201d tariffs (see updates below), the solar industry learned the final determination on rates for the anti-dumping, countervailing duty (AD\/CVD) case…<\/p>\n","protected":false},"author":51,"featured_media":11893,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":""},"categories":[4],"tags":[],"yoast_head":"\nHow Will Tariffs Impact the Cost to Go Solar in 2025? | Solar.com<\/title>\n<meta name=\"description\" content=\"As consumers are considering going solar it\u2019s important to understand what the impact of tariffs might be for the solar industry.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.solar.com\/learn\/how-tariffs-might-impact-solar\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Will Tariffs Impact the Cost to Go Solar in 2025?\" \/>\n<meta property=\"og:description\" content=\"As consumers are considering going solar it\u2019s important to understand what the impact of tariffs might be for the solar industry.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.solar.com\/learn\/how-tariffs-might-impact-solar\/\" \/>\n<meta property=\"og:site_name\" content=\"Solar.com\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Solar.comOfficial\/\" \/>\n<meta property=\"article:published_time\" content=\"2025-04-04T06:32:21+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-04-29T16:24:16+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/assets.solar.com\/wp-content\/uploads\/2025\/02\/solar-tariffs-2025.png\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"401\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Sam Wigness\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@SamuelWigness\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Sam Wigness\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.solar.com\/learn\/how-tariffs-might-impact-solar\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.solar.com\/learn\/how-tariffs-might-impact-solar\/\"},\"author\":{\"name\":\"Sam Wigness\",\"@id\":\"https:\/\/www.solar.com\/learn\/#\/schema\/person\/b594f06d4c2b5e6a0e85af02b90fb883\"},\"headline\":\"How Will Tariffs Impact the Cost to Go Solar in 2025?\",\"datePublished\":\"2025-04-04T06:32:21+00:00\",\"dateModified\":\"2025-04-29T16:24:16+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.solar.com\/learn\/how-tariffs-might-impact-solar\/\"},\"wordCount\":1708,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.solar.com\/learn\/#organization\"},\"articleSection\":[\"Solar Panel Cost\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.solar.com\/learn\/how-tariffs-might-impact-solar\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.solar.com\/learn\/how-tariffs-might-impact-solar\/\",\"url\":\"https:\/\/www.solar.com\/learn\/how-tariffs-might-impact-solar\/\",\"name\":\"How Will Tariffs Impact the Cost to Go Solar in 2025? 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