Will Lawmakers Repeal Solar Tariff Exemptions?
A resolution to repeal President Biden’s temporary relief of solar tariffs on panels imported from Southeast Asian countries was introduced by lawmakers in the House of Representatives yesterday, according to a statement. The resolution is designed to help American solar manufacturers who have been struggling to compete with more affordable panels manufactured overseas, mostly by Chinese-owned companies. The measure was introduced under a previous Act that allows lawmakers to revise federal rules with a simple majority of votes. The resolution is being introduced by Democratic Representative Dan Kildee, with support from both sides of the political spectrum. Would a repeal of a tariff affect Long Island Power Solutions and other solar installers in America?
What do Solar Tariffs Do?
A Solar tariff is a tax imposed by our government on imported solar panels and other related solar equipment.
These tariffs are designed to protect domestic manufacturers of solar panels from foreign competition by making imported solar panels more expensive, in turn making domestic solar panels more competitive in the market. The tariffs also aim to encourage investment in the domestic solar industry and can help to create countless jobs. However, tariffs can also increase the cost of solar energy for consumers and businesses.
Up until today, there has been a delicate balance of tariffs when it comes to solar. America imports 80% of its solar panels from Asian manufacturers. However, this is quickly changing.
With the Inflation Reduction Act of 2022, tax incentives were created to entice solar producers to build more factories in America. The benefits of this have already been seen, with major new projects being developed in Georgia this year.
However, because America is so far behind in production, it could take several years before the domestic industry can compete on the same level as international suppliers.
Will the Repeal Make Long Island Solar Installation More Expensive?
Solar tariffs have the potential to make solar panels more expensive, although this is assuming that a majority of lawmakers would agree to repeal the current suspension on tariffs. It’s unclear whether lawmakers would support this resolution en masse, as doing so would hurt the American consumer in the pocket.
And, with leading companies providing Long Island solar installation, the supply chains are diversified through some of the world’s largest manufacturers. Our business is an authorized installer of Tesla solar power on Long Island, and prices have been relatively stable considering Tesla’s size and market penetration.
We are also partnered with industry leaders like Hanwha Q Cells for solar panels used in custom installations. Hanwha is one of the world’s leading manufacturers, and the company is already developing new production facilities in America.
The team at Long Island Power Solutions doesn’t foresee any major impact from the latest news. When looking at the bigger picture of Long Island solar installations, the cost of getting installed today is more than 90% cheaper than it was in 1990, and the return on investment is so much more impressive.
Solar power on Long Island is one of the best investments that you can make in your home.
Get a Free Estimate for Solar Power from Long Island Power Solutions
If you’re anxious about recent news, you could always just push ahead with a Long Island solar installation to make sure you take advantage of the conditions as they currently are. There has never been a better time to invest in solar, especially when considering some of the solar incentives, like the 30% federal tax credit based on the cost of a new solar system.
You can get a free estimate for solar power on Long Island from the team at Long Island Power Solutions. Solar tariffs could change in the future. The best way to avoid the impact is to start planning your switch today.