New Solar Tariffs Could Affect Solar Panel Cost 

What's the deal with making solar panels prices higher?  We, the contrary has been the case over the last 20 years.  The cost of solar panels has been steadily diminishing due to innovation, volume, the efficiency of production, government intervention, and many more factors.   However there has recently been some new Tariffs placed on solar panels by President Donald Trump, and this, although hasn't offset the trend yet, could end in a temporary end in our continually lowered solar panel prices.   There are some aid type policies in place encouraging to offset growing costs, but let's see what more there is to be announced in the world of solar panel pricing.        

Recently in the solar panel industry news, there has been a lot of questionings regarding the new solar tariff from customers at HahaSmart. The unfavorable part of this new tariff is that this tariff will inflate the cost of a conventional home solar installation by $500 to $1,000. The good message is that you can still save money if you are bright, here at HahaSmart can save you within $1,500 and $3,000. For retail shoppers, the savings could be indeed greater.

Trump And Solar 

On January 22nd, 2018, the Trump Administration inflicted a 30% tariff against solar imports from outside the United States. The duty encompasses both imported solar cells, a key input to constructing solar panels, and solar modules, otherwise classified as solar panels. According to a production sheet issued by the U.S. Trade Representative, this duty will continue for four years and will decrease by 5% annually, declining to a 15% tariff in 2021.

The invisible hand, or otherwise known as free trade is a way to keep these prices dropping, and we are vehemently opposed to any trade limitation. We also expect this behavior to have a limited impact on the number of home solar installations in the United States. The majority of the influence of the tariff is reckoned to be felt by utility-scale developers. This expectation was confirmed by a June report issued by Reuters that exhibited U.S. businesses have canceled or stopped $2.5 billion in large PV installation projects due to the tariffs of solar panels. 

US Solar Tariffs

So, what is a tariff or duty? A tariff is simply a tax on imports or exports, in this sample, imports. There are two varieties of tariffs, those which are determined as a fixed rate on the goods and those that are measured as a planned dollar expense.

Trump’s tariff expects a 30% tax on carried panels in year 1, which is favored to a fixed dollar amount if you’re recognizing about going solar. Because the tariff is percentage-based, its authentic impact on costs will contract each year as the price of imported solar panels continues to drop.

Due to technological promotions in solar manufacturing, the cost of solar panels has decreased by between 2% and 6% per year for years previously. In China, South Korea, and other countries that constrain solar panel construction, diminishing costs and technological progress won’t reduce down solely because there is a U.S. tariff – and in precise terms, the tariff may provide them a basis to reduce costs quicker.

So, in conclusion, we can see that the percentage-based tariff, which is now estimated to drop each year, will also be small because it will be executed to ever-decreasing solar panel system prices. An example of this trend is represented below, wherever the dollar amounts exhibited are in dollars per watt of solar power.

Move into the future with solar with the help of HahaSmart., Try our price checker tool and see how affordable solar really is. We can also help find qualified solar installers who can help save you money on the cost of going solar.

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It's still an exceptional time to buy solar panels, so don't delay to contact us.