On January 22, President Trump approved tariffs on imported solar cells and modules. Although expected, it was disappointing nevertheless for most of the U.S. solar industry.

Disappointment aside, the impact on the residential solar industry overall is expected to be moderate according to most experts.

 

The tariffs will be applicable on crystalline-silicon solar cells and modules over the next four years, on a declining schedule. In each of these 4 years, the first 2.5GW of imported cells are excluded from the tariff.

Year 1: 30%

Year 2: 25%

Year 3: 20%

Year 4: 15%

The tariff is expected to increase the cost of imported solar cells and modules by about ~$0.10/W in Year 1.

SolarMax has been reviewing pricing levels with our suppliers and to date have found no significan increase in price as most of our suppliers prepared for the tariff by purchasing significant quantities of panels in advance of the tariff. Insofar as the first 2.5 gigawatts are exempt from the tariff, we expect solar panel prices to be close to pre-tariff prices through the second quarter of 2018.

The tariffs will apply to imports not just from China, but also to imports from other major trading partners such as Mexico, Canada, and Korea. GSP beneficiary countries, aka poor developing countries, are exempted if they account for less than 3% of imports.