If you’ve been following the news, you’ve probably noticed that tariffs have been in the headlines for much of 2025, and they’re having an impact on the solar industry.
Whether you’re a homeowner thinking about solar panels or a business owner watching energy costs, it’s helpful to understand how trade policies are affecting the rooftop market and how to best protect yourself from rising costs. Here’s a closer look at what’s happening and what you can do to stay ahead.
Why Tariffs? The Push for American Manufacturing
The main idea behind tariffs is to encourage domestic manufacturing. In theory, if it costs more to import solar panels and components, U.S. companies will step up to fill the gap, creating more jobs and raising quality standards. Sounds great, right? The challenge is that the U.S. solar manufacturing sector just isn’t big enough yet to meet the country’s huge demand. Even panels labeled “Made in the USA” often rely on imported components, which can also be hit by tariffs.
So, while the Inflation Reduction Act of 2022 has helped boost U.S. panel production, we’re still a long way from being self-sufficient. Ramping up domestic manufacturing takes time and major investment. In the meantime, solar companies face tough choices: raise prices to cover higher import costs, or dip into existing inventory to keep projects moving.
A Decade of Tariffs — and Counting
Tariffs on solar products aren’t new. The industry has been navigating these waters for over a decade, with both Democratic and Republican administrations imposing their own versions.
Back in 2012, the Obama administration slapped a 36% tariff on Chinese solar manufacturers, aiming to curb unfair pricing. More recently, the Biden administration stepped up tariffs, raising rates on photovoltaic cells and enforcing anti-dumping laws against several Southeast Asian countries. And this year, the Trump administration introduced tariffs as high as 3,521% on imports from Southeast Asia — a region that supplies most of America’s solar panels.
These measures are meant to level the playing field for U.S. manufacturers and strengthen our supply chain, but they come with trade-offs. When the cost of imported solar equipment goes up, installers often have no choice but to pass those costs along to consumers. That means uncertainty in pricing as the markets adjust, and potentially higher costs for homeowners and businesses wanting to go solar. This transition can also mean delays and disruptions in sourcing panels and parts, as well as a tighter market in the short term.
What’s Next? Policy Uncertainty and Market Shifts
The latest round of tariffs — including a 10% tariff on most global partners and a 145% rate on Chinese imports — has created more uncertainty. There’s talk that domestic manufacturing requirements could become necessary to qualify for tax credits. Additionally, battery storage, which is important for backup power, is expected to be hit especially hard by tariffs, since the U.S. still imports most lithium-ion batteries from Asia.
How Are Solar Companies Meeting These Challenges?
With new tariffs taking effect in 2025, the solar industry as a whole is preparing for higher prices and supply chain headaches. Some companies have relied on stockpiles of solar panels that were built up in 2024. (Bloomberg reports the U.S. had 40-50 gigawatts of surplus panels at the end of last year.) This buffer might soften the immediate blow, but it’s not a long-term solution. As inventories dwindle, access to the latest, most efficient panels could become limited, potentially slowing the pace of technological progress.
At EGT Solar, we are addressing these changes as we always have — with confidence, practicality, and resilience. In our 15 years in business in Idaho, we’ve made smart business decisions that have both allowed us to weather economic storms and helped our clients to mitigate these issues.
Our forte is in negotiating with manufacturers to find products of the highest quality for our customers so they can stay ahead of market fluctuations. Today, we offer a virtually endless aisle of products, which provide our customers with the most options for panels and components available in Idaho.
The Big Picture: Solar Still Makes Sense
However, even with tariffs, rooftop solar is still a smart investment. Since 2000, the U.S. has installed over 219 GW of solar capacity — enough to power more than 37 million homes. Solar technology continues to improve, and it’s more reliable than it’s ever been.
The market adapts, and history shows that solar growth continues, even as policies change. We recall that after Trump’s 2018 tariffs, the U.S. lost an estimated 10.5 gigawatts of potential solar deployment, but overall capacity more than doubled during his first term. Even now, solar remains the cheapest new energy source in the country, and installations jumped 51% year-over-year in 2023, reaching nearly 50 GW in 2024.
Ready to Go Solar? Now’s the Time!
If you’re considering solar for your home or business, we recommend you start gathering quotes and planning your project. It’s true that tariffs might push upfront costs higher in 2025, so it’s wise to act sooner rather than later to lock in better prices. By doing so, you’ll be joining millions of Americans who are making the switch to clean, reliable energy — and supporting the growth of domestic manufacturing along the way.
Have questions or want to learn more about how tariffs could affect your rooftop solar project? Contact our team today. We’re here to help you navigate these changes and find the best solution for your needs.
