As you have likely heard, the Trump administration announced they are imposing a 30% tariff on imported solar panels. There is a small annual exclusion for the first 2.5 gigawatts of panel imports. In addition, the tariff will be in effect for four years and then decline by 5% per year, ending at 15% in 2022.
So what does this mean for those who may be considering “going solar”?
Panels are just one component of the cost of solar. The other components are not impacted by the tariff. While all the details are not yet known, based on most of the estimates we’ve seen, the tariff will likely result in a 5% to 8% increase (per GTM Research) in prices of installed systems. When you consider the 30% tax credit and other tax advantages such as depreciation for agricultural and commercial systems, the net total impact will be less than 5% and here at Paradise Energy, we’ve positioned ourselves to be able to maintain our pricing levels with very little change.
Given the significant price drops in system costs over the past few years, solar will remain a very attractive investment and a great economical source of electricity for your business, farm, and home. So although the tariff will raise costs slightly, when you consider the current availability of incentives at the state and federal level, now remains a great time to be considering “going solar”.