Alexa st. John
Mike Summers has been eager to install solar in his Ohio home for years. And after he finally replaced his aged roof this year, his solar contractor got caught up in the action. His system includes 19 panels and battery backups – rising this week, and considers himself lucky in the summer.
said Summers, former mayor of Lakewood, just west of Cleveland. He receives a tax credit of about $10,000 for an investment of $39,000, but what’s about as important is that all the equipment is ready to go.
Other hopeful solar buyers may have a much more difficult time in the coming months. President Donald Trump’s escalating trade war with China threatens to crimp a large source of solar panels and components, and experts say the costs of the project will certainly rise as China retaliates.
According to the International Energy Agency’s report, particularly polysilicon, glass and solar cells, China recently accounted for at least 80% of solar panel components in 2022. Solar also calls for China to increase its critical mineral supply, an important player and electronics, as China is a key player around the world.
In the US, private industry has poured $18.2 billion into domestic supply chain development in recent years, according to Atlas Public Policy. This includes everything from the ingots and wafers that make up the panel to the electrical and structural components, to the assembly of the panel itself. Most of it came from the Inflation Reduction Act, passed during the former President Joe Biden administration, providing large funding for clean energy investments.
But it won’t come close to replacing it with what China produces.
“The system is costly for customers and in some ways it’s more difficult to do business, so when everyone thinks about it, it’s a loser,” said Briandy Paolo, assistant sales manager at Cleveland-based solar installer Yellow Light and assistant sales manager at Summers Project. Dipaolo said that some customers are holding back plans until they’re more clear. The company still had stock in solar panels made in North America a month ago to stay competitive in the coming months.
“We see both international and domestic manufacturers of equipment increasing costs in preparation for customs,” DiPaolo said. “You’ll be keeping prices lower because domestic manufacturers don’t get hit by tariffs, but you’re seeing this additional demand for equipment.”
Martin Pochtaruk, CEO of Heliene, whose focus is on large solar projects, said it is supply and demand. He explained the price of glass ingredients needed from China, which will rise in February due to tariff hikes. Suppliers from other countries matched with higher prices. This means higher costs regardless of source.
Alexis Abramson, dean of Columbia University’s Climate School, said there’s no doubt that residential solar will become more expensive. It cuts solar adoption and small and medium sized installers will enter the bottom, she said.
“We’re excited to announce that James Hasselbeck, Chief Operating Officer of New England-based Solar Company Revision Energy,” said:
Solar has become more affordable in recent years as technology expands, improves, and installations become cheaper. The system costs thousands of dollars on average, but the average cost of housing systems has dropped by more than 70% since 2010, according to the National Institute of Renewable Energy. American consumers have also been shot by credits that cut costs even further, although uncertain under the Trump administration.
Commercial and utility scale project costs also decreased dramatically.
It has grown rapidly across the US over the past 20 years. According to an annual report from association and consulting firm Wood Mackenzie, the commercial segment rose 8% in 2024, and the utility rose 33%. The housing segment fell 32% last year, but experts said it was due to high interest rates and election uncertainty and expected continued growth before tariffs occurred.
Sunlight is an important source of clean energy as it does not release harmful greenhouse gases that coal, natural gas and oil do. They are major contributors to global warming.
Trump imposed tariffs during his first term on imported solar cells and modules in 2018, hoping to reduce his dependence on China.
However, China subsidized its own domestic overproduction, and accused some US manufacturers of essentially moving operations to four Southeast Asian countries that have given temporary exemptions from tariffs.
Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association, said the US is “quickly tucking down supply chains from China to build the world’s most powerful solar power station.” The group said that in 2024, the production capacity of the south-centered modules increased by 190%, and Suniva resumed production, “it was reworked for the first time in five years.”
But Hopper also mentioned a sudden shift in policy risks that have been cold and slowed job creation, particularly for manufacturers. The group said the tariffs issued during the first Trump administration were subsequently harmful to the industry.
Ultimately, Abramson said, “I would encourage anyone who really thought about putting solar on the roof to really consider locking it faster than later.”
Find out more about AP’s climate coverage at http://www.apnews.com/climate-and-environment.
Alexa St. John is a climate reporter for the Associated Press. X: Follow her at @Alexa_stjohn. Contact her at ast.john@ap.org.
Associated Press Climate and Environmental Insurance receives financial support from several private foundations. AP is solely responsible for all content. Find AP standards for working with Ap.org supporters and charities, a funded coverage area.
Original issue: April 18, 2025, 12:54pm EDT
