It’s Time to ‘Lock In’ Solar Savings
Trade actions expected to lead to significant price increases by later this year.
As you may or may not be aware, there are petitions before the World Trade Organization and International Trade Commission seeking to impose tariffs on solar module imports into the United States. While a decision from these bodies may be made this coming September – the Trump administration has signaled that no matter the outcome, they may unilaterally impose a tariff on imports, in an effort to protect U.S. manufacturers of solar panels.
The net effect is that the cost of a solar project is expected to increase by more than 20%, regardless of where modules are procured. While this is still well below where prices were even a couple of years ago, the reality is – the longer you wait on a project, the more prices are likely to increase, and supply may become harder to get in advance of the tariff ruling.
There is uncertainty on where all of this will net out, and the solar industry is working against these actions (far more jobs are at stake if solar module prices get too high). Having said that, the best guidance we can offer our customers and prospects is to do everything you can to get aspired projects under contract well in advance of September.
Our approach to solar has always been on the economic value for our customers. If you’ve seen us run the numbers for you, you know we are passionate about helping customers maximize the potential savings available by harnessing the fuel from the sun. The core economics remain solid – the effective cost of solar energy is still $0.03 to $0.04 per kWh if you move ahead today. Unfortunately – if you wait, there will be more uncertainty on the economics. We are stressing the time urgency here because we want you to capture the best possible financial value from this remarkable renewable energy.
Please don’t hesitate to reach out with any questions – we are happy to discuss this in detail.
For more information on the trade tariff issue, feel free to visit:
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