It’s not new news that US President, Donald Trump and his Administration, have put in place a tariff on the importation on solar panels. For now, there will be no price changes, but this won’t last long as the stockpiles of modules that companies imported in anticipation of this tax will dwindle.
How will this impact homeowners and their bottom line?

What is the new solar tariff and how does it work?

The new solar tariff, put in place on January 22, 2018 is a levy placed on the importation of solar energy equipment (i.e., solar as well as solar cells used in the construction of solar panels). The tariff is percentage based and is scheduled for a 4-year period, starting 2018 and ending in 2021.
The tariff kicks off at 30% in the first year and then drops at a steady rate of 5 percent each following year until it gets to 15% on the 4th and final year.

What does this mean to you and other homeowners?

The impact of the new solar tariff to homeowners, won’t carry as much weight as anticipated. Transparently said, the new tariff is estimated to increase the price of a homeowner going solar by $500 – $1,000. With that in mind, why would now be a good time to go solar?

1. Solar companies have stockpiled panels that won’t be affected by the tax

There is certainly a rush as homeowner scurry to get in on the panels that won’t be impacted by the tariffs, but as GreenTech Media mentioned US companies have about 2 giga-watts of tariff free models reserved for 2018 projects; which is equivalent to about 2,000 residential solar installs that are 10 kilowatts (avg size).

2. Homeowners are still going to save between 10-40% off their electricity

Solar for homeowners is a long term play. Even with a price increase of $500 – $1,000 on the cost, qualified homeowners can still save between 10-40% off their electricity.

3. The price of solar has substantially dropped

Less than 10 years ago if a homeowner wanted to purchase an average size system (8-10kw) they would be looking at a price tag around $80,000, today they are looking at a price tag around $30,000. We ourselves have witnessed the price continue to drop and Ben Gallagher mentioned in a GTM Research Study he predicts that the price of constructing solar power technology will continue to decrease by 4.4 percent each year.

4. The tariff impacts the panels and not the installation (the expensive part)

The panels themselves aren’t the expensive part – it’s the install. The new solar tariff would only affect solar panels and other solar energy equipment which make up a small % of the entire cost. It’s the installation that drives up the price and it’s companies like ours that can help pair homeowners with installers that offer competitive pricing and the best products in the market so homeowners aren’t impacted.

5. State & Federal incentives will continue to help

The state and federal incentives are still there. State rebates such as the Residential Solar Investment Program in Connecticut that give homeowners a $0.54 per watt rebate (up to a 10 KW system) when purchasing panels and the Federal Tax Credit that gives homeowners a 30% tax credit continue to make it attractive for homeowners to go solar and save.

What now?

No matter how you choose to look at it, solar energy is still the best bet for homeowners as it provides, clean, affordable and renewable energy that allows qualified homeowners to save between 10-40% off their electricity bill and protect themselves from future electricity price increases.
If you knew that the tariffs wouldn’t impact your price and you could save between 10-40% off your electricity if you pursue solar now – would you explore the option?  
Learn more about what we can save you on your electricity with no money down here.
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