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The Trump administration's tariffs on solar imports have significantly impacted the U.S. solar industry, affecting costs, employment, and the pace of renewable energy adoption. Two days after the tariffs were announced, two companies canceled their deals and placed them in a holding pattern. Additionally, three new companies decided to get their equipment before the ninety (90) day period, which adds 5 to 7 cents a watt to their module purchases. I suggest that if you have a project that you plan on completing, to get started on ordering your equipment while tariffs are on pause.
Inverter prices have not increased, but many inverter factories are in China. These prices will go up substantially, and we are hoping our customers will purchase inverters right away so we can save them large sums of money.
Eight (80+) percent of all battery cells are manufactured in China. When you add only 10% to a battery, the price can burden the developer. If the 130+ percent additional tariff is not resolved, battery projects will not be completed. After the initial tariff, the Administration sent out a list of technologies that would not be tariffed, and batteries were on the non-tariff list.
Increased Costs and Installation Slowdown
In 2018, the U.S. imposed a 30% tariff on imported solar cells to bolster domestic manufacturing by making imported panels more expensive. However, this measure led to higher costs for solar installations, slowing down the deployment of solar energy across the country.
We can confirm that only one cell factory is operating in the US. This factory charges around 20 cents a watt for the cells. That was before the tariff, so we believe that pricing will increase. We will check in with the company this week to get new pricing. Although the 20 cents is high, if the IRA is not changed downward or disappears, the 10% increase in tax benefit will offset some of the increased cost of the cell.
Unicorn Solar is attending Clean Power.
Please note that if you are attending Clean Power in AZ next month, please visit us at booth 1720. We would love to meet you and help you save money. Robert and Kevin have 20 and 17 years of experience in the solar industry, and we should be able to assist you with any needs, wants, or requirements you have.
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