U.S. Solar Industry And Trump's Tariff 

We are half of the way through 2018, and while the tariffs are having an influence on jobs and companies, the U.S. solar market is still smoking.

The tariffs on imported solar panels inflicted by the Trump administration six months ago have done little to discourage the flourishing solar market in the United States.

Company officials and industry analysts say that the consequences of the tariffs, increased costs for installations that could reduce demand for solar projects and lead to thousands of job losses—have primarily been canceled out by other factors.

Many developers had piled up on inexpensive panels in the apprehension of the import fees. China reduced the pace of domestic installations, creating an excess of cheap panels that could spill into global markets. And U.S. consumers have a big incentive to install solar panels in the next 18 months before U.S. tax incentives start to fizzle out of the market.

So far, there are not adequate data to tell how much the import fees are altering project expenses, although it is clear that there has not been a dramatic change.

"We're talking about small changes to a general trend," stated Colin Smith, a solar examiner for Wood Mackenzie Power & Renewables. That general trend is the fast growth of solar. "It does have an impact," he said. "But it's not terrible."

Companies Respond 

A few firms responded to the tariffs this winter and spring by declaring plans to open or expand plants in the United States, in part to reduce exposure to the charges. Any benefit to doing that will likely be short-lived, however, because the tariffs, which started at 30 percent, go lower each year before a complete phaseout following four years.

Panel consumers are now saying that the effects on costs appear to be brief and minor. Bob Komin, a chief financial officer for the rooftop solar business SunRun, said in an Aug. 9 conference call that equipment costs are falling back to where they were last year before the run-up in forecasts of the tariffs.

"Generally speaking, I think any price increase arising from tariffs ought to be temporary," he stated, noting that the major suppliers have plants in several countries and can adjust their production to answer to tariffs.

Solar Tariffs

President Trump signed a request to force the tariffs in January, with an effective date of Feb. 7. It covers crystalline-silicon solar products, the most popular material used in solar panels.

The operation followed a complaint filed last year by Suniva and supported by SolarWorld, two of a small number of businesses that make panels in this country. They asked for security because foreign governments were subsidizing their industries and flooding the market with low-priced products.

The accusations about low-price solar imports have been around for years, and the administration's action was an early sign of an aggressive trade policy that has gathered energy ever since.

Trump's rise toward a trade war with China has included additional tariffs on other products, and the outcome of broader talks could well influence the effects on the American solar industry.

Want to save and be guided by experts? Go to HahaSmart.com and try our price checker tool. It tells you how much solar power you need and how much you can save on your energy bills each month.