Solar power tariff

How will tariffs affect the cost of solar panels?

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. Let’s start with the impact on the cost of going solar.

Will trump's 2025 tariffs affect solar?

Overall, Trump’s 2025 tariffs are expected to have a minimal impact on the cost of going solar. 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.

Will China increase solar tariffs?

This move will increase tariffs on certain solar products coming from China to up to 60%, including solar cells, wafers and polysilicon. This comes only months after the Biden administration increased tariffs, under Section 301, for solar cells from 25% to 50% in September 2024 and later on did the same for wafers and polysilicon.

Are solar tariffs inflationary?

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. 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.

Can a manufacturer absorb solar 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.

Do you need solar panels for this tariff?

Households don’t even need a full solar installation to be eligible for this tariff – so if you don’t have panels yet, you can start using it with just a battery. 15p per kWh is a good rate, and the qualifying conditions are pleasingly limited: you just have to import your electricity from British Gas.