Tariffs are essentially a tax on imported goods. New tariffs will likely effect imported material costs for silicon and earth minerals utilized in the manufacturing of solar panels, inverters and batteries. While many manufacturers are already in the process of shifting to stateside manufacturing, most of them still source their raw goods from overseas suppliers. This could impact project costs of solar installation companies by increasing prices by an average of $500 for a residential project.
The Silver Lining
Not all hope is lost! Here’s what may cushion the blow:
Battery + Solar Bundles – Combining solar with storage could increase long-term savings and resilience, making higher costs more palatable.
Domestic Manufacturing Boost – The Inflation Reduction Act provides major incentives for U.S. panel production, which could lower reliance on imports.
Central Coast Community Electric Incentives – 3CE, San Luis Obispo and Santa Barbara counties local electrical generation company is providing homeowners with massive rebates for battery installations.
Federal Tax Credits – Federal Tax Credits are 30%, allowing home and business owners to recuperate 30% of their original installation cost and improve the ROI on these projects.
Original Energy’s Expert Analysis
Tariffs may slightly raise solar installation costs in 2025 by increasing project prices around $500 dollars, but the long-term value of solar remains strong with our average client seeing over $50,000 in lifetime savings. Whether you’re motivated by energy savings, environmental goals, or energy independence, the sun still offers a powerful return on investment.
