The Tariff on Solar Panels
The US Government has imposed a 30 percent tariff on solar panels made outside the United States on January 22nd, 2018. Should this impact your decision on the consideration of solar panels for your home or business? Let’s break it down for you and you can decide that for yourself.
The implementation for this tariff on solar panels could have been to delay the inevitable decline of fossil fuels like coal or to help domestic solar manufacturers. If the US government implemented this tariff for the dwindling coal industry than they merely just postponed it. Whatever the reasoning for this tariff is it can ultimately be seen as nothing more than a speed bump.
Perhaps the US government wanted to boost domestic solar manufacturers and to create competition again. However, American labor costs can’t come close to competing with foreign solar labor costs. Meaning the cost of a domestic solar panel will cost the same if not more than a foreign solar panel. At the same time foreign solar panels are more efficient than domestic solar panels. Basically creating an “even” playing field, but not really.
What we hope for with this Tariff
As technological advances and evolving social preferences transform industries we definitely can see renewable energy rise in the industry. Hopefully domestic solar manufacturers can get a leg up by creating efficient solar panels for the US people. If not then people will simply just buy foreign solar panels. Because costs are falling so fast, the penalty on imported panels won’t matter much.
How it impacts you overall
To put it simply the price per watt increases. However, solar is still affordable for the average consumer and should not worry you if you plan on purchasing solar for your home. Will this be the US governments only tariff on solar panels though? Technically they can bring in many more tariffs on solar panels and mess with the free market. Our solution to you would be to get a custom proposal today! By getting solar panels installed onto your home not only do you own your energy system.
- Avoid any further tariffs that could potentially raise the price per watt.
- $0 down and it pays itself off
- Avoid the rising energy prices
Looking for more in depth information? Download our free E-book “Introduction into Solar“!