How Solar Tariffs Impact the Cost of Solar Panels in the U.S.

If you’ve been following the solar industry, you’ve probably heard that tariffs have affected the price of solar panels in the United States. But how, exactly? And more importantly: what does this mean for Arizona homeowners considering solar?

In this guide, we’ll break down everything you need to know — from what tariffs are and why they exist, to how they’ve impacted solar prices, availability, and your bottom line.

First, What Are Solar Tariffs?

A tariff is essentially a tax placed on imported goods. In the solar world, tariffs were introduced to discourage reliance on cheap, foreign-made solar panels — especially from China — and to protect U.S. solar manufacturing.

The U.S. has imposed several rounds of solar-related tariffs over the years, including:

• Section 201 Tariffs (2018) – A 30% tariff on most imported solar panels and cells, designed to protect U.S. panel manufacturers.
• AD/CVD Tariffs (Anti-Dumping and Countervailing Duties) – Targeting specific countries (e.g. China, Vietnam, Malaysia) accused of unfair pricing and government subsidies.
• Auxiliary restrictions – Including investigations into tariff circumvention, new tariffs on bifacial panels (temporarily exempted), and more.

Why Were These Tariffs Put in Place?

The rationale: Foreign manufacturers, especially from China and Southeast Asia, were undercutting U.S. solar panel manufacturers with panels priced below market value. These aggressive prices were made possible by government subsidies and huge economies of scale.

The U.S. government introduced tariffs to:

• Level the playing field for domestic manufacturers
• Encourage the growth of U.S. solar manufacturing jobs
• Reduce overreliance on Chinese supply chains

While well-intentioned, these tariffs created significant ripple effects—both positive and negative.

How Have Tariffs Affected Solar Panel Prices?

Let’s break it down:

1. Short-Term Price Spikes

When tariffs were first introduced in 2018, the cost of imported panels increased by 10–20% almost overnight. Many solar companies scrambled to stockpile inventory, which led to supply issues and installation delays.

2. Slower Price Declines

Before tariffs, solar panel prices were dropping rapidly each year. Tariffs slowed that trend, especially for entry-level systems that depended on low-cost imports.

3. Higher Costs for Consumers

Although solar prices are still lower than they were a decade ago, tariffs have added roughly $0.10–$0.30 per watt to system costs in some cases. For a typical Arizona home needing a 7 kW system, that’s an added $700 to $2,100 in costs.

4. Greater Interest in Premium & Domestic Panels

Some solar installers began leaning toward U.S.-based or tariff-exempt manufacturers. That has increased demand (and cost) for premium panels from companies like REC, Qcells (Korea-based with U.S. production), and Maxeon/SunPower.

Ongoing Uncertainty: The Ever-Changing Tariff Landscape

One of the most frustrating parts of solar tariffs is that the rules are constantly evolving.

• In 2022, President Biden imposed a 2-year pause on new tariffs for certain Southeast Asian countries.
• In 2024, the Department of Commerce resumed investigations into tariff circumvention by companies moving production from China to Vietnam, Thailand, and Cambodia.
• In 2025, additional tariffs are being considered or expanded, depending on trade policy shifts and global tensions.

For homeowners, this creates uncertainty in both availability and cost—especially if panel shipments are delayed at customs or rerouted due to regulation changes.

What Does This Mean for Arizona Homeowners?

While tariffs have increased pricing pressure industry-wide, Arizona remains one of the best-value solar markets in the U.S. thanks to:

• Plentiful sunshine (higher energy yields per panel)
• Lower soft costs (permits, labor, and interconnection)
• Strong incentives (26% federal tax credit, no sales tax, and net billing in many utility districts)

At Advanced Electric & Solar, we’ve adjusted by:

• Partnering with tariff-exempt or U.S.-based manufacturers to secure reliable, competitively priced inventory.
• Designing systems that maximize output per panel—so you need fewer panels to meet your goals.
• Keeping labor, design, and permitting costs efficient so we can absorb material fluctuations without passing them all on to you.

Should I Wait for Tariffs to Go Away?

Not necessarily.

Although there’s talk of easing some restrictions, the Inflation Reduction Act (IRA) and other federal legislation are pushing to rebuild U.S. manufacturing, not remove trade barriers. That means:

• Tariffs may be here to stay (in some form)
• Domestic prices may remain higher due to limited supply
• Solar tax credits and net billing policies may change before tariffs do

In other words: Waiting might not help, and it could hurt if you miss out on time-sensitive incentives or favorable utility rules.

Our Advice: Focus on System Value, Not Panel Price Alone

It’s easy to get caught up in panel pricing—but what really matters is the total value of your solar investment. That includes:

• Long-term savings on electricity
• Maximized tax credits and local incentives
• Quality workmanship and panel reliability
• Ongoing monitoring, support, and warranty coverage

At Advanced Electric & Solar, we walk you through every component — from panel brand to inverter type to warranty to tax credits — so you understand exactly where your money is going.

Want a Custom Quote Without the Tariff Confusion?

Our team stays ahead of supply chain shifts and trade regulations, so you don’t have to. Whether you want to go solar now or explore solar + battery + EV options for the future, we can create a system that’s built to last — and priced right.

Schedule your free consultation today and let’s design a solar solution that works for your home, your budget, and your future.