New Solar Tariffs Start December 4: What They Mean for Your Solar Price
In August, the federal government announced new tariffs on imported solar panels and the parts used to make them. They take effect December 4, 2026. If you're comparing solar quotes this fall, here's what's changing and what it may mean for you.
What's changing
On August 6, the President signed a proclamation under Section 232 of the Trade Expansion Act, a law that lets the government restrict imports for national security reasons. For solar equipment imported on or after December 4:
A new 15% tariff on imported silicon wafers, solar cells and solar panels. It applies no matter which country they come from, with somewhat different rates for a few trading partners.
A minimum price. Imported panels can't come in below 38 cents a watt, and cells below 22 cents. If an importer pays less, it owes the difference as an extra duty.
On top of existing duties. The new tariff adds to the duties already charged on panels from several Southeast Asian countries.
The administration says the goal is to rebuild U.S. manufacturing. In 2005, the U.S. made about half of the world's polysilicon, the raw material in most solar cells. By 2024 it made less than 2%. The solar industry is split on the move: the Solar Energy Industries Association says it will raise energy costs, while several U.S. panel makers welcomed it.
What it means for the price of a home system
Nobody knows the exact effect yet. A few things help put it in perspective:
Panels are only part of the price. A home system's price also covers the inverter, racking, wiring, permits, design and labor. A tariff on panels raises the total by less than it raises the panel price.
The cheapest imports are hit hardest. Recent estimates cited by Solar Power World put panels assembled in India at about 14 cents a watt and in Southeast Asia at about 27 cents. Both are below the new 38-cent floor.
Established brands may see smaller changes. A policy strategist at REC, one of the panel brands we install, told Solar.com he expects modest price changes from the main residential panel makers, with low-cost importers facing the most exposure.
It's about when panels are imported, not when you install. The tariff applies to panels that enter the country on or after December 4. Panels already here before then don't owe it, though prices across the market can still move.
If you're shopping for solar this fall
Compare quotes on the same equipment. If one price is far below the others, ask which panels it uses and where they're made.
Ask how long the quoted price holds. Equipment prices may change after December 4, so it's worth knowing how long your quote is good for.
Decide with real numbers. If you've been planning to go solar, a quote now shows you today's pricing, so you can decide on facts instead of headlines.
Questions about your project?
We'll tell you which equipment is in your quote and how the tariff change affects it. Request a free estimate or call us at (505) 228-8900.
