The future of solar energy in America is hitting a costly obstacle — and it starts at the global level. A new wave of tariffs and trade tensions between the U.S. and China is poised to make solar panel systems significantly more expensive for American homeowners and businesses alike.
Mike Summers, a homeowner in Ohio, considers himself fortunate. After replacing his roof, he installed 19 solar panels with a battery backup — just before prices begin to climb due to the latest geopolitical conflict. Summers will benefit from $10,000 in tax credits on his $39,000 investment, but others may not be so lucky.
China currently produces over 80% of the materials used in solar panels, including polysilicon, solar cells, and specialized glass. As the U.S. imposes new tariffs on Chinese goods and China retaliates, the global supply chain is being squeezed. The result? Higher prices and less availability of parts.
Brian DiPaolo, assistant sales manager at solar company YellowLite, confirms that the market is already feeling the pressure. “International and domestic manufacturers are raising prices in response to expected tariffs. Even domestic companies are increasing prices because of the surge in demand.”
Although the U.S. has invested over $18 billion into developing a domestic supply chain — thanks largely to the Inflation Reduction Act — that investment still falls short of replacing China’s global production dominance.
Martin Pochtaruk, CEO of Heliene, points out that even non-Chinese suppliers are matching the price increases caused by tariffs. “There’s no escape — everyone’s paying more,” he says.
Experts agree: the price of residential solar systems is going up. Alexis Abramson, dean of Columbia University’s Climate School, warns that this will slow adoption, especially for small and midsize solar installers who may not survive the pricing shifts.
Although residential solar prices have fallen more than 70% since 2010, this new development could reverse progress, just as America was gaining traction in clean energy adoption.
According to industry data, while utility-scale solar grew 33% in 2024 and commercial solar increased 8%, the residential market fell by 32%. Analysts blame high interest rates and election-year uncertainty — and that was before the tariffs.
If you’ve been thinking about going solar, now might be the time to act before prices climb further.
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