Trump's Tariff Could Raise Solar Projects $1000 On Average

The Trump administration issued its official ruling regarding the Suniva Section 201 case and declared that they agree that the nation’s solar industry has taken losses as a result of global solar actions.

The administration has decided to force a 30% tariff on all imported solar cells and solar panels, reducing 5% a year for four years. The first 2.5GW of solar cells introduced will not be tariffed, to protect the domestic solar panel industry.
 
The administration published its thoughts on the Section 201 case via a fact sheet: Section 201 Cases: Imported Large Residential Washing Machines and Imported Solar Cells and Modules. The document’s first half is connected with washing machine imports, while the second half concentrates on the Suniva trade case.

If Tesla and Panasonic can get their solar cell and panel production going in Buffalo, it won’t pay any tariffs. Either way, the first 2.5GW of solar cells shipped aren’t tariffed – so, long-term, Tesla might have ducked a bullet even if they plod along.

Interestingly, even though Tesla would have profited from this tariff because of Buffalo, they lobbied against it.

According to one organization, the tariff applies in about 15 days – but could be continued to start in 90 days.

23,000 Jobs Saved

Greentechmedia and the SEIA submitted that the USA would lose up to 80,000 jobs if the 40¢/W tariff that Suniva asked for was implemented. This tariff is less than half of that for the high-end market, and one quarter in the low cost, high volume market.

Greentechmedia proposed a 10¢/W tariff would slow the solar industry by 8.3%.

Both Suniva and SolarWorld have implied that they’d go out of business without really high tariffs.

This tariff will influence the cheapest solar panels the least since they’re already priced the inexpensive. Thus, utility-scale installation groups – who buy panels at 35¢/W will exhibit the least consequences: a project price increase of approximately 10-11¢/W. Not a disastrous number for the big players.

Organizations that buy higher efficiency solar panels – most American residential consumers and some smaller commercial systems will pay a greater price. Since higher efficiency panels tend to fetch most, a 30% tariff on them will be greater. For example, an LG or Panasonic panel, maybe a cutting-edge bifacial monoPERC, which costs closer to 50-70¢/W at import, will see a cost increase of 15-21¢/W.

Something at the ultra high end like a SunPower at $1/W – will see an improvement of 30¢/W. This is a raw number, totally inappropriate for a US based company who gained nothing from Chinese banking favors.

That 15-21¢/W applied over the average system installation size of 5,000W, will mean an additional cost of $750-$1,050. If the average system is the USA costs $3/W – this increase on just the solar panels will be approximately 5-7% on the overall system price.

5kW Price

A 5kW, on average (this varies significantly transversely our country with different prices of electricity and sunlight), will generate about $1,000/year in electricity revenue (excluding incentives).

Interestingly – the 30% Federal Tax Rebate – will be implemented after the tariff increase is applied. That means, your system will rise in price – not the full 5-7%, but actually more like a 3.5-4.9% because you’ll get a 30% Federal Tax Credit smacked off of your 30% Federal Solar Panel tariff.

Curious about solar hard costs vs. soft costs near you, and how that might affect your own solar panel pricing? We here at HahaSmart you will have a look at what we can offer you on the cost of solar panels and cost of solar installations. We will strive to find you the best prices available. Follow the solar experts. Try our price checker tool. It tells you how much solar power you need and how much you can save on your energy bills each month. Please visit our solar blog to find out more about the benefits of going solar.