U.S. Senate Repeals Solar Energy Solar Panel Tariff Break
Following recent news that the U.S. House of Representatives had voted to reinstate solar panel tariffs on a handful of Southeast Asian nations, the Senate has now also voted to do the same. Both sides of the legislature have now shown that they want tariffs back on solar panels imported to America. But, their statement might only be symbolic, as President Biden has promised to veto these decisions. Solar Panel tariffs were paused for Malaysia, Cambodia, Vietnam, and Thailand last year. This was intended to give local distributors time to stock up on solar panels while America developed its solar panel industry. With more than 80% of the solar energy solar panels used in America being imported, tariffs can have a massive influence on the market.
What Does This Mean for Solar Installation in New York?
For New York Residents, the price of solar financing and outright purchases should remain stable in the meantime. There are available stocks of solar energy solar panels that have been imported while tariffs were paused. And, if President Biden veto’s the decisions from Congress, then the tariffs will remain paused throughout his term. The Executive Branch has the ultimate say on trade-related concerns.
If we look further into the future, the pause on solar tariffs was only ever supposed to be a temporary measure. It was designed to allow time for new solar panel factories to be established in America. This has already been underway. Some of the world’s leading manufacturers, like Q Cells, have already started to build local factories. Long-term, America will become more self-sufficient in terms of its solar industry. This will ensure a few things…
- Solar panel supply chain constraints will no longer be of concern.
- Tens of thousands of jobs will be created in the solar industry.
- Solar panel prices could become even more competitive, as importers will need to compete with local industry.
- Consumers and solar panel installation companies will have more choices.
Are tariff breaks the best thing for the wider industry right now? While it could be argued that Biden has gifted business to foreign companies, the reality is that America doesn’t currently have the infrastructure to develop all of the solar panels that it needs. Domestically the supply meets less than 20% of the total demand. The tariff breaks were a necessary stopgap while America’s industry was developed.
The government has also made tax breaks available for companies that build solar panel manufacturing facilities in America, so the approach is multi-leveled.
Should You Worry as a Consumer?
If you’re thinking about getting a New York solar installation, the latest news won’t change a lot for you. There will still be affordable solar energy solar panels available through leading installers like New York Power Solutions. Even when tariffs are eventually reinstated, either by the President or through a new Act of Congress, the domestic industry should be sufficient to help keep supply and prices in check.
Solar Power in New York is still a fantastic investment and one that’s historically at its most affordable level. The relatively low cost of a New York solar installation compared to the savings make it one of the best improvements that you can make in your home.
New York Power Solutions is ready to help you with the planning, installation, and long-term maintenance of solar power in New York. Start with your free online solar estimate and we’ll get right on to your energy savings evaluation, consultation, and cost/benefit analysis. When you go renewable with solar, you’ll have true energy independence and freedom from the ludicrous price of electric utilities in New York.