Solar Panel Tariff
Protecting Customers from Imminent Price Increase
Over the past week, we’ve gained a greater understanding of the new tariff. One interesting note is that the first 2.5 GW of imported cells will be exempt from tariffs. The 30 percent duty will likely undermine the business case for new solar power development in the United States. While strict, the tariff is lighter than the restrictions originally requested by SolarWorld and Suniva to the International Trade Commission.
Over the next year, it will become more apparent how this tariff will impact the solar industry. Some are concerned that this will lead to an increase in prices which will adversely affect American solar jobs, but Iowa Wind and Solar will do everything we can to ensure stable, affordable pricing to protect our customers and employees. We’ve weathered worse and are still looking forward to a very bright year ahead!
President Trump has imposed a tariff on imported solar cells. The tariff is set at 30% for all imported solar modules and cells. The tariff is set to drop by 5% per year over the course of four years. The final year will see the tariff set at 15%. While this decision will impact the solar industry, it will in no way shut it down. Solar has become more affordable and accessible in the US than ever before, and that’s a trend that will continue as we bring energy and jobs across America. IAWS will provide further updates as they become available.
Changes are coming quickly for the solar industry, but what does that mean for new solar customers in 2018?
Two major American solar panel production companies are calling for protection against unfair foreign competition, and President Trump has to make a decision of how to proceed on this matter by January 27th.
Unfortunately for the buyer, the more protection these companies receive, the more comes out of the consumer’s pocket. American solar companies are working to protect their customers from this expected rise in price and the uncertainty of what those prices may be.
It is impossible to predict how the White House will respond to this call to action. The deadline has been already been extended once from January 12th to January 27th. The final ruling will give everyone a clear view on what solar customers will see as the new normal.
On January 27th President Trump will have to make a formal decision on what he thinks is the best way to protect American solar panel manufacturers. Depending on this decision of implementing of a import tariff, quota, or combination of the two, American solar customers can expect price increases from 10-25%.
At Iowa Wind and Solar, we are anticipating these increases by working with our customers to protect them against changing prices. Lewis Butler, Sales Manager, assures customers not to worry:
“The good news is if you successfully secure panels through the first quarter of next year [as well as] everyone who is in our installation lineup right now… the installations should go according to plan.”
It will be interesting to watch the changes that are coming soon to the solar industry, but it is our job to provide innovation and efficiency that is aligned with the environment, not against it.
If you want more information on the current policy changes please view our in depth webinar below- Solar Panel Tariff: Everything you need to know about the International Trade Commission’s proposed tariff on solar modules with Lewis Butler, expert in the field of renewable energy with a Masters in Economics from George Mason University.
Together we are creating a cleaner environment for generations to come, so please remember to #BeBright !
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