Over the past few weeks, tariff policy has gone from buzz to front-page news. The recent whirlwind of announcements started with new tariffs on several countries that supply solar equipment to the U.S., followed by a 90-day pause announced just days later. As it stands today, only Chinese imports face steep tariffs, but uncertainty remains about what comes next. If you're considering solar for your home, you might be wondering: "Will these tariffs affect my plans? And if so, when?"

In this post, we'll break down the current situation, share what history has taught us about solar tariffs, and explain what these changes could mean for your solar journey.

Note: This is an evolving topic. 

What Are Tariffs and How Do They Affect Solar?

Simply put, tariffs are taxes on imported goods. While not specifically targeting solar, they may affect many of the materials and components used in solar energy systems, including panels, inverters, batteries, and materials like aluminum and steel. These tariffs aren’t currently product-specific–they apply based on the country of origin which means tariffs can affect both solar equipment and the individual components used to build it. This means that products assembled here in the US will likely end up costing more.   

When tariffs take effect, they raise costs for U.S. companies, which often means higher prices for consumers. ​​For example, if imported solar cells, the critical components that actually convert sunlight into electricity, become more expensive because of a new tariff, your solar installation cost will go up, even if the products are assembled here in the States. 

According to the administration, these tariffs aim to strengthen domestic manufacturing by making imported products more expensive. However, in the short term, they can disrupt supply chains, limit product availability, and introduce potential pricing shifts for both solar companies and homeowners.

Where Do Solar Panels Come From?

Today, most solar and battery installations in the U.S. include components made overseas, particularly from Southeast Asian countries such as Cambodia, Malaysia, Thailand, and Vietnam. Even panels labeled “Made In USA” often have imported solar cells. Last year alone, the US imported 13.89 gigawatts of silicon cells (enough to power approximately ten million homes) from other countries.

This setup has left the solar industry very dependent on global supply chains. So when trade policies change, effects ripple through the entire industry, often resulting in higher costs for both installers and homeowners.

Domestic Manufacturing

America has made impressive strides in domestic solar manufacturing over the past two years. Thanks to the long-term strategic structure and incentives from the Inflation Reduction Act, companies have been building and expanding clean energy facilities across the country. As of early 2025, we now have the capacity to assemble more than 50 gigawatts of solar power each year. 

However, building solar modules isn’t the same as making all the parts that go into them, and most of the solar cells used in the US inside panels and along with many of the components are still imported. 

2018 Tariffs and What We Learned Last Time

This isn't our first experience with tariffs on solar. In 2018, a 30% tariff was put on imported solar panels and solar cells. Even before the tariffs took effect, the marketplace reacted; installation prices for homeowners jumped as suppliers rushed to buy up panels ahead of the expected tariffs. 

While the 2018 tariffs were designed to support U.S. solar manufacturers, studies showed a mixed impact—some growth in domestic production, but also higher prices for consumers and slower adoption rates overall. While these tariffs were intended to boost domestic manufacturing, they had significant impacts on the entire industry. Studies found that without these tariffs, the demand for solar energy would have been  17.2% higher. Instead, growth slowed.  Over the next few years, the industry missed out on thousands of jobs, billions in investments, and enough solar capacity to power millions of homes. Homeowners ultimately saw higher costs, with total increases estimated at $236.5 million Put simply, the 2018 tariffs made solar more expensive for everyday homeowners. Fewer companies were offering services, fewer systems were being built, and the price of going solar increased across the board. While the policy aimed to support American manufacturers, it ended up slowing down the industry's growth and made it harder for many families to access affordable clean energy.

2025 Tariffs and What’s Different This Time Around 

On April 2, 2025, On April 2, 2025, the current administration announced a wide-reaching range of tariffs that impacted nearly every industry. The solar industry is likely to feel the effects of new tariffs, which include up to 49% on products from Southeast Asian countries, including Vietnam, Thailand, Malaysia, and Cambodia. These countries supply most of the imported solar equipment used on American homes, so any new tariff policy affecting them could have widespread consequences. China, another major player in the solar supply chain, was hit even harder, with tariffs on some solar products exceeding 100%. Lithium-ion batteries from China, commonly used in residential energy storage, could significantly increase the price for homeowners looking to add backup power to their solar systems. 

Just days after the announcement, an unexpected shift occurred. The administration issued a 90-day pause on most of these tariffs. As it stands today, only Chinese imports face steep tariffs up to 145%.  It is important to note, despite some confusion, that solar cells were not exempted from the executive order and remain subject to tariffs. 

This temporary pause gives the industry a brief breathing window, but the uncertainty remains. With only three months before new decisions may be announced, solar companies are actively preparing for potential impacts on pricing, equipment availability, and installation timelines.

What This Means for Homeowners

While these tariffs haven't yet increased prices for homeowners, the potential for near future price increases is very real. History shows that even the announcement of tariffs can trigger early price adjustments as companies prepare for changing costs. Despite the current pause on most tariffs, the uncertainty alone can influence the market.

The good news is that solar incentives remain strong. You can still take advantage of the 30% federal tax credit and get significant savings on your solar investment. With all of this uncertainty, it is a good time to lock in today's prices and avoid possible delays down the line.

The Price of Grid Electricity Might be on the Rise

These tariffs won’t just affect the price of going solar; they will also likely affect the systems that keep the traditional grid running. That includes imports like transformers, grid batteries, steel and aluminum, and other equipment and materials utilities rely on to deliver power to homes and businesses. When these things become more expensive due to tariffs, those costs typically find their way to your monthly electric bill. In fact, some utility companies have already raised rates or warned of higher costs in anticipation of supply chain delays and rising infrastructure expenses.

Scientific American highlights this concern, warning: “Tariffs stand to exacerbate shortages of key components used by the energy industry… hamper[ing] efforts to keep up with rising electricity demand.”

Here's where solar can help, home solar offers a practical way to gain more control over rising energy costs. By generating your own energy at home, you become less dependent on the grid and more insulated from utility rate increases. Pairing your system with battery storage can add an extra layer of resilience, allowing you to keep essential appliances running during outages and use stored energy when electricity is most expensive. In a time of shifting policies and supply chain uncertainty, solar can provide more predictability and peace of mind.

Now Is the Best Time to Go Solar

Even with the temporary pause on tariffs, there’s still a lot of uncertainty about what will happen next. While prices haven’t gone up yet, the situation is changing rapidly. Any new announcement could lead to sudden price hikes or longer wait times. Here’s why it makes sense to go solar now:

• Current prices are still at pre-tariff levels
• The 30% federal tax credit offers significant savings
• Solar power protects you from utility rate increases

By starting your solar journey today, you can avoid potential equipment delays and start saving immediately.

Start Your Solar Journey

Citadel has helped thousands of California homeowners navigate solar decisions through changing policies, shifting incentives, and rising utility rates. We understand that making this decision during uncertain times can feel overwhelming. That's why our team is here to help you navigate these waters with confidence. We’ll walk you through your options, explain everything clearly, and deliver a system you can count on.

The current tariff pause creates a unique window of opportunity, but it won't last forever. By acting now, you can secure pre-tariff pricing while solar equipment remains readily available and affordable. Contact us today for a free consultation and take the first step toward energy independence.