Will Solar Tariffs Affect Your Federal Rebate for Solar?
The affordability of solar power on Long Island means that you can get clean energy at home while paying less to your utility company. Calculating the cost of a Long Island solar installation can be complicated when you look at things from a high level. The cost of manufacturing, tariffs, domestic taxes, labor, and a host of other factors are all considered in the price. Over the weekend, it was announced that the House of Representatives had voted to restore solar panel tariffs. Does this mean that solar power on Long Island is going to get more expensive, and will it affect your Federal rebate for solar? Let’s find out…
How is Your Solar Rebate Funded?
Your Federal rebate for solar, specifically the 30% tax credit made possible by the Inflation Reduction Act of 2022, is funded until 2032. This funding has already been approved by Congress. It can be repealed, however, this is unlikely to happen as the Act is beneficial to consumers as well as professional industries and service providers.
The latest news relates to imported solar panels and won’t affect your rebate. Lawmakers want to restore tariffs on panels that come from Malaysia, Vietnam, Cambodia, and Vietnam. Investigations have found that these countries are being used as conduits to ship Chinese products to the U.S. without import tariffs.
Why are Lawmakers Trying to Add Tariffs to Solar Panels?
President Biden invoked the Defense Production Act to implement a moratorium on tariffs for imported solar panels. This moratorium was set to last for 24 months and would affect 80% of America’s solar panel supply. It temporarily removes tariffs to ensure that panels are more affordable, so that homeowners can transition to solar, and large-scale developments can be completed at reasonable costs.
The House of Representatives has voted to restore the tariffs, but this would still need to pass through the Senate. Even if it does, President Biden has the power to veto the decision and has vowed to do so.
The logic here is simple. By pausing these tariffs in the meantime, the solar industry in America will remain uninterrupted. It will also give manufacturers a chance to set up factories in North America to avoid tariffs in the future. This would stimulate the economy and create jobs. Some of the world’s most important solar manufacturers have already built factories in America, although 80% of the domestic solar panel supply is still supported by imported products.
Your Federal solar rebate is safe no matter what happens with tariffs on imported solar panels. Even if tariffs were reimplemented, solar would still be affordable with only a slight decrease on the long-term return on investment. Tariffs were active until June 2022, and even before that time, solar was still more affordable than it had ever been.
Learn About the Cost of Solar with Long Island Power Solutions
If you’ve been thinking about getting a Long Island solar installation, the latest news may have you concerned. There’s no need to worry about what’s happening with tariffs at this time. At least under the current Administration, solar will remain affordable for the foreseeable future, and when tariffs are eventually reinstated, there will be time for America to expand its manufacturing industry. Eventually, we’ll reach a point where the market is more competitive and more components are domestically sourced, which will work out better for homeowners and the industry.
Learn about the cost of solar with your free estimate for Long Island solar installation. Your Federal rebate for solar isn’t going anywhere, and with no-money-down financing from Long Island Power Solutions, you can afford to go green at home, while securing long-term savings that last for decades. Choose the best installers on Long Island and get solar done right.