{"id":11916,"date":"2025-03-06T19:37:49","date_gmt":"2025-03-06T19:37:49","guid":{"rendered":"https:\/\/www.solar.com\/learn\/?p=11916"},"modified":"2025-03-11T21:31:15","modified_gmt":"2025-03-11T21:31:15","slug":"what-trumps-2025-tariffs-mean-for-rooftop-solar","status":"publish","type":"post","link":"https:\/\/www.solar.com\/learn\/what-trumps-2025-tariffs-mean-for-rooftop-solar\/","title":{"rendered":"What Trump\u2019s 2025 Tariffs Mean for Rooftop Solar"},"content":{"rendered":"

*Update:\u00a0Shortly after announcing new tariffs on March 4, the Trump Administration issued exemptions for certain goods coming from Mexico and Canada until April 2, 2025.<\/em><\/p>\n

In March 2025, the Trump Administration enacted new tariffs on imports from Canada, Mexico, and China. While these tariffs may have some effect on the cost of solar panels (even panels made in the U.S.), the larger impact will likely be on the rise in electricity rates from utility providers who rely on imported materials to build and maintain the grid.<\/span><\/p>\n

Let\u2019s start with the impact on the cost of going solar.<\/span><\/p>\n

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Impact of 2025 Trump Tariffs on Rooftop Solar Costs<\/span><\/h2>\n

On March 4, the Trump Administration increased the existing tariffs on China by 10%, which includes solar panels and solar panel components.<\/span><\/p>\n

Tariffs on Chinese-made solar components are nothing new and, in fact, were imposed during Trump\u2019s first term and expanded by the Biden Administration in 2024. The idea is to protect and encourage domestic solar manufacturing.<\/span><\/p>\n

Overall, Trump\u2019s 2025 tariffs are expected to have a minimal impact on the cost of going solar<\/a>.<\/span><\/p>\n

For starters, most solar panels purchased by American homeowners do not come from China. They often include Chinese components, but the panels are manufactured in the US and other countries without tariffs. For most rooftop solar systems, the 10% increase won\u2019t apply to the whole panel, but to select components used to make it, such as the frames.<\/span><\/p>\n

Additionally, solar panels typically make up less than 30% of the total project cost. Within the full scope of a rooftop solar project, a 10% increase to certain solar components ends up being a very slim piece of the pie.<\/span><\/p>\n

The bottom line is that tariffs are inflationary. While solar panel prices may rise from the latest round of tariffs, the larger impact will likely be seen in your electricity bill.<\/span><\/p>\n

Related:\u00a0<\/strong>Trump and the Fate of the 30% Solar Tax Credit<\/a><\/p>\n

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Solar (and Battery) Specific Tariffs Will Influence Solar Pricing in 2025<\/span><\/h2>\n

There are two industry-specific trade cases working their way through the review process. The first is an \u201cantidumping, countervailing duty\u201d case against solar panel imports from Cambodia, Malaysia, Thailand, and Vietnam. Those four countries accounted for 80% of solar panels supplied to the US and preliminary duty rates range from 50% to over 500%. Those rates will become final later this spring and will further influence the price of solar panels.\u00a0<\/span><\/p>\n

Second, is the Chinese \u201canode\u201d antidumping countervailing duty case. The anode case is targeted at one of the core materials used to make batteries. Anodes represent about 10% of the cost components of energy storage and petitioners have asked for 900% duty rates. If those are accepted it could effectively double the price of a battery overnight as there are not a lot of non-Chinese anodes available in the market at scale.\u00a0<\/span><\/p>\n

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Impact of 2025 Trump Tariffs on Electricity Rates<\/span><\/h2>\n

Along with the 10% increase on Chinese imports, the Trump Administration enacted 25% tariffs on goods imported from Canada and Mexico, which includes crucial components to build, maintain, and modernize the electricity grid.<\/span><\/p>\n

Here are some examples:<\/span><\/p>\n