Potential Tariffs Threaten to Inflate U.S. Solar Panel Prices by 66%

An analysis by Clean Energy Associates warns that new U.S. tariffs on solar imports from Southeast Asia could inflate solar panel prices by up to 66%, jeopardizing national climate goals. The proposed tariffs aim to protect domestic investments but could significantly increase the cost of solar projects.

New tariffs on solar imports from Southeast Asia could see U.S. solar panel prices soar by up to 66%, warns an analysis by Clean Energy Associates. The report highlights the potential threat to national climate objectives.

Major solar equipment manufacturers have urged President Biden's administration to impose these tariffs, citing the need to safeguard significant investments in U.S. manufacturing spurred by the Inflation Reduction Act (IRA). The IRA has already triggered a surge in domestic solar production.

CEA's analysis forecasts a rise in U.S. solar panel prices by 10 cents per watt to 32 cents per watt, while imported modules could spike by 15 cents per watt to 40 cents per watt. Such increases could hinder solar projects' profitability and disrupt U.S. plans to install 500 gigawatts of solar power by 2030, compared to 177 GW at the close of 2023.

(With inputs from agencies.)