How the latest tariffs could impact solar energy in 2025

If you’ve been living in the U.S. and have a working screen of any kind, you’ve no-doubt heard of tariffs. Tariffs, of course, are a tax on imports imposed and collected by the government. And there’s no way around it: Tariffs make things more expensive for everyday consumers. 

If you’re thinking about going solar this year, you may also have seen headlines about new tariffs on imported solar panels and parts. The good news is that solar is still a great investment for most homeowners, but these policies can sound confusing (and a little intimidating). 

So, in this article we’ll break down how current and proposed tariffs could affect your solar install — and your wallet.

In this article: 

• What are solar tariffs?
• What is going on with solar tariffs in the U.S.?
• Types of solar electricity rate tariffs
• Global comparison of solar tariffs
• Economic impact of solar tariffs
• What does all of this mean for you?
• Frequently asked questions

What are solar tariffs?

The solar tariffs we’re talking about here are the kind we mentioned above: a tax imposed by the U.S. government on imported solar equipment, like solar panels, PV cells, and modules. 

There are other policies, sometimes called “tariffs,” within the U.S. — like feed-in tariffs, net metering, and time-of-use tariffs. These are also important considerations, but aren’t related to international trade and are not covered in this article. (Stay tuned!) 

What is going on with solar tariffs in the U.S.? 

Recent tariff announcements, including rates as high as 3,521% on Southeast Asian solar products, have stirred the industry. The ongoing solar tariffs, which started during the first Trump administration, have far-reaching implications for the U.S. power industry, including expected higher prices on solar equipment.

Bottomline? The landscape is more complex than ever. Here’s a breakdown of what’s been happening.

Anti‐dumping and countervailing duties (AD/CVD)

The U.S. government uses anti-dumping (AD) duties to penalize foreign companies that it perceives are selling solar products below fair market value, while countervailing duties (CVD) aim to offset subsidies provided by foreign governments that the U.S. government deems unfair. On the surface, these measures aim to level the playing field for domestic manufacturers.

“Dumping” refers to when a country exports products for less than the price they cost in its own market to undercut domestic competitors. Anti-dumping duties try to counteract this dumping with taxes on imported solar goods. Similarly, countervailing duties try to neutralize subsidies or tax incentives from foreign governments that enable importers to sell solar products at an artificially lower price. 

In April 2025, the U.S. Department of Commerce issued the final affirmative determinations in its anti-dumping and countervailing duty investigations on crystalline silicon photovoltaic (CSPV) cells and modules imported from Cambodia, Malaysia, Thailand, and Vietnam. It then imposed the highest anti-dumping rate from these rulings, 271.45%, on certain Vietnamese exporters.

Section 201 solar tariffs

The Section 201 solar tariffs were established in 2018 during the first Trump administration, and placed a 30% tariff on imported solar cells and modules over four years, declining 5% per year. However, Section 201 solar tariffs were extended to 2026 by the Biden administration, with the exclusion of bifacial solar modules that ended in June of 2024. The administration also raised the Tariff Rate Quota to 12.5GW, meaning more solar cells can be imported at a reduced rate.

Section 201 resulted in 62,000 jobs lost or never hired in the U.S., according to the Solar Energy Industries Association (SEIA). 

Section 301

Section 301 of the 1974 Trade Act allows the U.S. to impose trade sanctions on countries that breach trade agreements or restrict U.S. commerce. In terms of solar, Section 301 is more targeted than Section 201, establishing tariffs for solar imports from specific countries — especially China. In 2025, these tariffs were ramped up significantly:

• In late 2024, the Biden administration doubled tariffs on Chinese-imported polysilicon and solar wafers from 25% to 50%, effective January 1, 2025.
• In February 2025, the Trump administration added a 10% “reciprocal energy resource” tariff, raising the total tariffs on Chinese polysilicon, wafers, and solar cells to 60%.  

This increasingly complex tariff strategy aims to reduce U.S. reliance on Chinese solar materials and spur domestic manufacturing.

What you should know about Section 232 investigations

Section 232 of the Trade Expansion Act of 1962 allows the U.S. to restrict imports if they’re found to threaten national security. In July 2025, the U.S. Department of Commerce launched an investigation into imported polysilicon (a key material in solar panels) due to growing concern over U.S. reliance on Chinese-made materials for solar panels. 

If these restrictions are implemented they could stack on top of Section 301 tariffs, creating an even steeper cost barrier for imported solar materials.

Global comparison of solar tariffs 

The U.S. is not the only country that has solar tariffs. Several countries in the European Union have focused more on incentives than import restrictions to strive toward renewable energy goals, like the E.U.’s Net Zero Industry Act. 

Similar to the U.S., Brazil has established tariffs on imported solar modules, increasing tax rates to 25% in 2024. Germany proposed, but didn’t pass, a “resilience bonus” as part of the Solarpaket 1 legislation package early in 2025, which would have provided a subsidy for domestic solar manufacturers to help them compete with China.

Economic impact of solar tariffs

Solar-related tariffs have major implications for the growth, affordability, and accessibility of solar in the U.S. Import tariffs put a strain on the U.S. solar supply chain. According to a SEIA study on the effect of the Section 201 solar tariffs in the U.S. between 2017 and 2021, those tariffs caused the loss of 62,000 jobs, 10.5 GW of solar, and $19 billion in private sector investment. Additionally, a 2025 Wood Mackenzie analysis found that tariffs have made the U.S. the most expensive country in the world to build solar projects. 

What does all this mean for you?

In short, tariffs on imported solar panels and materials are driving up costs across the industry. But the good news is that while this may lead to modest price increases for residential solar, the impact on a single residential project shouldn’t be extreme. 

Supply chain challenges and import duties will raise costs, but the long-term ROI of solar, especially when paired with battery storage, continues to grow. Tariffs may shift the market, but they haven’t changed the bottom line: Residential solar is still one of the most effective ways to take control of your energy future.

Want to see how solar might look on your roof? Check out our marketplace.

Frequently asked questions 

What are solar tariffs and how do they affect the cost of solar energy?

Solar tariffs are a tax on solar equipment imported to the U.S. from other countries, such as solar panels, modules, and cells. These tariffs have the potential to make going solar more expensive, even when you buy equipment from a U.S. manufacturer, because they can disrupt the solar supply chain.

Are there any tax exemptions or reductions available for residential solar installations?

Yes, 36 states in the U.S. have property tax exemptions and 25 states have sales tax exemptions for residential solar installations, according to SEIA. Some state and local governments also offer further incentives for installing solar panels on your home.

Will tariffs make solar more expensive?

Yes. Tariffs make things more expensive for consumers. Period. The good news is that the increase is relatively modest for most homeowners. Recent tariffs have led to about a 1 cent per watt rise in solar module prices, according to PV Magazine, and SEIA confirms that the growing availability of domestically produced panels has helped stabilize prices. Combined with incentives, solar remains a strong financial investment for homeowners despite slight price bumps.