During Donald Trump's campaign to be the US president for a second time, his economic proposals focused on generating revenue by taxing trade -- including new and expanded tariffs on the solar industry. Those proposals turned into reality on April 2, 2025, when a raft of new and increased tariffs were announced during what Trump called Liberation Day. To understand what that means for those considering adding solar panels to their home, it's important to first understand what tariffs actually are.
Tariffs are fees imposed on imports of certain products from other countries, and they effectively increase those products' prices. While it may seem unusual or illogical for a president to want to raise prices, particularly in the wake of a bout of inflation unseen in decades in the United States, the logic behind tariffs is to raise prices American consumers pay on imported products to make the idea of creating or producing them domestically more appealing. Then, hopefully, some of those manufacturers would consider building factories or otherwise relocating production operations to the US.
When it comes to clean energy, Trump first imposed tariffs on solar cell and module imports in 2018, during his first term in office. Those tariffs were, however, not the first on solar components, as the US had already imposed tariffs on solar imports from certain countries. Research shows that in response to tariffs on Chinese-sourced solar products, production mostly moved to other Asian countries, rather than the US.
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But this go-around, Trump's main target is China, which leads the world in solar component manufacturing and has also helped lower prices considerably in recent years. Over the past decade, for example, solar panel prices have declined 37%, according to the most recent data available from the Solar Energy Industries Association.
"The Chinese government is subsidizing the production of solar panels, so that's the 'foul' that the US government is declaring and gives them a reason to institute tariffs," said Steve Cicala, associate professor in the Department of Economics at Tufts University and a research associate at the National Bureau of Economic Research, whose work focuses on the economics of regulation concerning energy policy.
That, in part, is why Trump feels emboldened to press forward with additional or stronger tariffs on solar components during his second term. Since April 2, tariffs on solar panels imported from some Southeast Asian countries have ballooned to 3,532%. So what does this mean for consumers?
How tariffs affect the cost of rooftop solar panels
No matter which way you look at it, tariffs increase the costs of goods, period. Additional or new tariffs on solar panels or components effectively raise the prices of solar projects. Even the threat of new tariffs could lead to price increases, too, as those in the industry start preparing for potential tariffs and position themselves to absorb increased costs. And then there's the impact of the tariff itself and what it means for importers.
"Ultimately, tariffs are just a tax. It's a specific kind of tax, and taxes make things more expensive," said Cicala. But even if the Trump administration's focus on tariffs does lead to price increases, Cicala said that some things are working in the industry's favor that should keep it growing. Those include legislation -- most notably, the renewable-friendly policies under the Inflation Reduction Act -- passed by the Biden administration, and the fact that solar technology itself has become cheaper and more efficient.
The Inflation Reduction Act, "which instituted a bunch of policies to promote renewables," Cicala said, "was designed in ways that were economically valuable to Republican districts."
The data bears this out, as noted in a report published by the advocacy group E2: "Growth from post-IRA projects tracked by E2 is particularly pronounced in Republican-led districts and states in the South."
As such, it may be a bad idea for the Trump administration to try and peel some of that legislation back, as it would be hurting his base. And given the technological improvements in solar technology, it's become easier to adopt and cheaper than alternatives, in many areas, meaning that it may be the go-to choice for homes and businesses in the energy market.
In short: Despite Republican rhetoric about slashing renewable energy, there isn't much of an incentive to do it, and the market may dictate the winners at this point, either way.
Should you go solar before tariffs go up?
For consumers or homeowners, particularly those who are interested in potentially buying and installing a solar system soon, the question now becomes whether they do so sooner rather than later. There continues to be some considerable confusion and concern about tariffs and their impact on customers., That alone may spur at least some percentage of solar-curious households to take action before prices increase.
While that may make logical sense, it isn't quite as clear-cut. Cicala said that there's going to be a trade-off for those households between potentially saving money by buying a potentially cheaper solar system soon, versus dealing with a system that could quickly become outdated. In other words, since solar technology is advancing and evolving so fast, systems that are manufactured in a year or two may be much more efficient and cost-effective than the ones on the market now -- so, even if you're saving money by avoiding tariff-inspired price hikes, you may be purchasing a less efficient system, and pay for it over the long haul.
"The panels themselves have gotten more productive and cheaper over time -- whether you want to install it now or two years from now, you may be avoiding the tariff now, but you're also locking yourself into a technology that won't be as good next year or the year after," he said. However, if you're already dead-set on getting a system, it may make more sense to go ahead with the purchase rather than wait. "Many people have decided that the economics [of a solar system] make sense. For those people, it's a no-brainer."
It may already be too late. "I expect that the quotes installers are giving out are already pricing in the anticipated increase," Cicala said.
