How American-Made Solar Products Might Avoid New Tariffs
From the dinner table to the boardroom, there is considerable talk of tariffs these days. As companies strategize how to navigate a shifting landscape, homeowners are debating whether now is the best time to invest in solar systems before the tariffs take hold. Unfortunately, the answers to so many questions are murky right now and many questions remain unanswered. If you want your solar installation company to stay ahead of the conversation, there are some key considerations we advise considering.
Turn to the team at DynoRaxx to learn more about the American-made products we offer and the strategies we recommend pursuing during this period of uncertainty.
Which Tariffs Impact the Solar Industry the Most?
The current administration has issued blanket tariffs on goods from a growing number of countries. However, in regard to solar tariffs, it’s important to remember that this isn’t the first time that tariffs on solar goods have come into question. In 2018, the former administration issued graduated tariffs of between 15% and 30% on Section 201 and 301 goods. These included photovoltaic products made abroad. Further, these tariffs were later expanded from 25% to 50% to include solar cells manufactured in China.
Essentially, tariffs on imported solar equipment are nothing new. However, the exceptional increase is new and will make all imported solar systems considerably more expensive. Plus, the new expansive tariffs include rates as high as 25% on metals, making domestic solar system manufacturing costlier.
How Will This Impact Solar Product Costs?
The impact of raising tariffs on foreign-produced solar systems and the increased cost of the raw materials domestic manufacturers depend on will most certainly result in higher prices regardless of where the systems are manufactured.
Additionally, many companies are holding off on shipments from abroad for various reasons. The cost of the new tariffs is prohibitive to many businesses, and market volatility and uncertainty over tomorrow’s tariff rates mean that many businesses are holding off on placing new orders.
This will cause significant disruption to supply chains, with an increasing likelihood of shortages as the year progresses. Even with the present pause on tariffs from many countries and on many products and materials, the uncertainty is already rippling through the solar industry.
Will American-Made Solar Products Be Cheaper?
Yes, no, and maybe. It depends on the products and the manufacturer’s reliance on foreign components and materials. In cases where the company is heavily dependent on foreign components and materials, the cost will continue to rise until the tariffs are removed. Even then, those solar products are unlikely to see more than a gradual decline in prices that could take years to stabilize.
Domestically Produced Solar Products
Conversely, while domestically produced goods typically have a higher price point than imports, prices of domestically produced solar systems are less likely to see significant increases. Further, since the materials we rely on are sourced domestically, we’re also less likely to experience production and delivery delays. And, unlike many traditional ballasted solar racking systems, which are made from aluminum, we use fiberglass baskets, which are not. This will make our domestically produced solar systems considerably more dependable and attractive within the marketplace.
DynoRaxx Produces Solar Mounting & Racking Products in the U.S.
At DynoRaxx, we’re absolutely certain that the sun will continue to rise and shine regardless of whatever tariffs are imposed on the industry at large. We will continue to manufacture and deliver the superior solar solutions our clients depend on for their solar energy needs. We offer a comprehensive range of high-quality products that will provide safe, reliable, efficient installation and maintenance of your systems, including:
Why Solar Installers Should Choose DynoRaxx
At DynoRaxx, we’re committed to ensuring you receive the superior solutions and dependable products you need to enjoy the benefits of solar energy production. We will help you find the best solutions for installing the systems your clients and customers depend on. We’re committed to helping your business navigate an increasingly volatile market so that you can continue to grow and expand your operations.
When you need products you can rely on, contact the team at DynoRaxx to place an order for our American-made solar racking and mounting solutions.