Tariffs introduced in 2018 aimed to boost U.S. solar manufacturing but ended up slowing the industry’s growth. Now, in 2025, new and even steeper tariffs are creating new uncertainty for homeowners, small businesses, and clean energy advocates across the country.
- What are the latest tariffs on solar energy imports?
- What effect will Trump tariffs have on the solar industry in America?
- What does the future hold for solar energy in America?
1. What are the latest tariffs on solar energy imports?
The U.S. solar industry is facing a rapidly changing landscape due to new tariffs on imported solar panels. Most solar panel imports from China are now subject to a 145% tariff, making China a central player in this evolving situation. Meanwhile, several solar manufacturers in Southeast Asia may face tariffs as high as 3,521% after an investigation found they may be helping reroute Chinese solar products to avoid existing penalties.
In April 2025, the U.S. imposed a flat 145% tariff on imports from China to counter unfair trade practices and support American manufacturing. However, this move has major implications for solar installers. U.S. solar panel manufacturers depend heavily on Chinese materials and components, so even solar panels made domestically are becoming more expensive due to rising supply costs.
So, where did the unprecedented solar tariffs of over 3,500% come from? These were announced in response to recent findings that several Chinese-owned solar manufacturers operating in Cambodia, Vietnam, Malaysia, and Thailand were receiving Chinese government subsidies. This allowed them to export solar panels at prices far below their actual production costs, triggering the steep new tariffs.
2. What effect will Trump tariffs have on the solar industry in America?
Most solar jobs in the U.S. are in installation, not manufacturing. That means when costs of materials rise and projects stall, it’s local workers who lose out. The hope is that Trump tariffs will create more American manufacturing jobs, but that may not make up for losses elsewhere in the solar industry.
To predict what the future holds, we can look back a few years to the effects of tariffs imposed by the 2018 Trump administration:
- The 30% tariff raised solar panel costs.
- Higher costs led to a slowdown in solar projects.
- Around 62,000 solar installation jobs were lost.
- Domestic production saw minimal increase due to infrastructure gaps.
- Supply chain disruptions due to delays and shortages of materials.
As advocates of clean, affordable energy, we’re hoping our crystal ball is wrong and the effects of the latest round of tariffs will be less disruptive than expected. If investment in domestic manufacturing grows and incentives are offered to offset higher costs for consumers, the solar industry can survive this latest storm and come out stronger on the other side.
3. What does the future hold for solar energy in America?
The future of solar in the U.S. depends heavily on what happens with tariffs over the next few years. Different policy choices could lead to very different outcomes:
- If tariffs are lifted or reduced in the immediate future, solar panel prices would likely fall, reigniting growth in the installation sector.
- If tariffs are kept in place temporarily, there might be time for American manufacturers to scale up if they get the right support and investment.
- If tariffs remain indefinitely, the U.S. risks staying stuck with high prices, limited supply, and slowed progress toward clean energy targets until affordable materials and components can be sourced.
Whatever happens, it is clear to see that policy decisions made now will shape the trajectory of solar energy for years to come. And with Trump tariffs already driving up energy costs, there’s no better time than now to invest in your home’s solar-powered future.
At Wattson Home Solutions, we can help you navigate your solar options and find the best solutions for your budget. Plus, programs like MassSave can provide financial incentives and support, making going solar more affordable than ever.
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- If you liked this article, you might also like ‘Going Solar in Massachusetts with Wattson Home Solutions’.
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