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Having solar panels installed on your roof comes with several associated costs. Aside from the installation fee and the upfront expense of the solar panels, you also need to set aside enough funds for routine maintenance and repairs. You must also have your roof inspected and checked for damage. How long will your roof last? Will repairs extend the roof’s service life, or do you need to install a new one? That will increase your overall project costs. Understanding solar tariffs can help you manage your spending and budget.
What Do You Need to Know About Solar Tariffs?
If you have been thinking about buying solar panels, you may have heard about solar tariffs since it was in the news early this year. First, tariffs on solar imports were extended. Months later, the President moved to drop tariffs from Southeast Asian countries. If you are considering hiring solar services in Peoria to install those solar panels, understand the solar tariff situation to get an idea of what’s currently happening in the industry. This may or may not affect your budget costs, so the more information you have before moving forward, the better.
What Does the News Say?
Last June, President Biden declared a 24-month tariff ban for solar panels from the following Southeast Asian countries: Cambodia, Thailand, Malaysia, and Vietnam. The decision was made after an investigation froze imports from the four nations, saying that solar panels from them were finding ways to circumvent tariffs on China-made goods. The move has cleared up concerns about retroactive tariffs that could have gone as high as 250 percent. Tariffs could be put on panels imported after the 24-month ban, depending on the results of the investigation. But retroactive tariffs were now off the table, so that’s one less thing to worry about once the investigation and two-year suspension on tariffs end.
How Will the Ban Affect the Solar Market?
Tariffs are taxes, or duties levied on goods from abroad and imported into a country. That makes the imports more expensive, so consumers are more likely to choose local products and service companies. However, US tariffs target China-made solar panels. That’s obvious, given how the dropped tariffs only apply to four Southeast Asian countries. Given the longstanding trade war between the US and China, though, recent developments are not surprising. The dropped tariffs also provide competition but won’t dominate the market, supporting fair trade policies and standards.
What Will Happen Next?
Supply chains are also moving away from China. Issues intensified during COVID-19, as the pandemic disrupted logistics. It has been harder to import products from China since then. Freight rates also rose in 2021, and that, combined with congested ports, virus-related lockdowns, and other problems, has led to more and more customers and companies securing an alternative elsewhere. China produces around 75 percent of solar panels around the world. And while that limits the panels that US solar developers can use, it also means that more companies are finding alternatives, boosting demand for local suppliers.
