Expect a Solar Tariff From Trump

A 30% tariff was recommended by the US ITC and now heads to Trump

The Federal Government still offsets 30% of the cost of even imported panels, so this places that expense as a wash. The actual expense of panels is minor to most projects, increasing in proportion as the project size scales, due to diminishing cost of labor with economies of scale. One added a benefit is this may be a boost, if only symbolically as well, for manufacturing, as well as research and development, of panels here in the US. Additionally, as China appears to be subsidizing their manufacturers to produce below cost, their is a potential that manufacturers further lower panel costs to remain cost advantaged and maintain production volumes. China has long appeared to have a focus on production volume over efficiency and this industry will remain significant to the nation as global demand for clean energy, and increasingly products from clean energy propelled supply chains, increases at a staggering rate.

If either of these outcomes proves to be the case, the Trump Administration will be standing on a huge symbolic win for the strategies they preached coming into office. Exemplary of protectionism successfully at work in the US. If they fail, or worse, they fail and have a negative impact on solar adoption in the US, Trump garners another symbolic win in favoring his base, including Federal spending hawks, over national competing interests.

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