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April 29, 2025How President Trump’s Tariffs Are Impacting the Solar Industry
After years of consistent growth, the solar industry is facing a new era of uncertainty as President Trump’s tariffs and potential policy reversals loom large. After spending the leadup to the election pushing these specific taxes as a way to build up the American economy, Trump stayed true to his word this past April as the administration announced a sweeping set of tariffs that affected nearly every industry. As most solar manufacturing is done overseas, the solar industry was immediately hit, with global supply chains disrupted and uncertainty casting doubts on the future of solar energy. In the blink of an eye, years of steady growth came to a screeching and unsettling halt. While the solar market has weathered storms in the past, the scale and scope of these new tariffs could have long-lasting consequences for the industry.
The Solar Industry Under President Biden
Clean energy, including solar, saw record-breaking growth over the past few years, including a record-breaking number of solar installations in both 2023 and 2024. Much of this growth is due to the Inflation Reduction Act (IRA), which was passed in 2022 under the Biden administration. The IRA incentivized the creation of clean energy jobs, as well as domestic manufacturing, and provided a whopping $369 billion in investments for climate initiatives. This included long-term tax credits, including the Investment Tax Credit (ITC), which incentivized homeowners and businesses alike to invest in solar panels and batteries.
The Solar Industry Under President Trump
Since taking office in 2025, the President Trump has taken a different approach to clean energy. The administration favors fossil fuels over clean energy and has threatened to dismantle much of what the IRA accomplished, including walking back many of the clean energy incentives that directly led to the recent boom in the solar industry.
While the Trump administration has already made many controversial moves, the most notable one so far may be his tariffs. Though their stated purpose is to improve American manufacturing, they also threaten to derail global industries which rely heavily on international trade and cooperation. In March, Trump signed an executive order which would implement a 145% tariff on China. Additionally, several other Southeast Asian countries, many of which are key players in the global solar supply chain, have been hit with high tariffs as well. The implementation of these tariffs could provide a major blow to the solar industry, and significantly raise the costs involved with going solar. The damage done to the industry would not only be an economic setback, but an environmental one as well.
How Tariffs Affect the Solar Industry
When it comes to tariffs, the truth is that no industry will be unaffected by them. The nature of a global economy means that somewhere along the line, your business will be hit by the sharp increase in costs associated with importing goods from abroad. When it comes to the solar industry, China accounts for roughly 80% of the world’s solar production. While China has moved much of its manufacturing to other countries in Southeast Asia, tariffs have expanded to affect those countries as well. As a result, the industry has been hit hard and is trying to find its footing. Some companies have already shut down. Others have raised their prices to cover the costs of tariffs. Many US solar distributors are also reporting delays in shipping and product shortages.
Potential customers who may have been interested in going solar are now holding back due to the volatility and uncertainty of the industry, as well as potentially higher costs. As costs rise across the supply chain, the prices of solar equipment continue to climb. Eventually, the cost gets passed on to installers, and ultimately, to the consumer.
The 30% federal tax credit that was a big part of the IRA still applies, but with higher costs, homeowners may not be receiving the savings they once did. Additionally, the Trump administration is threatening to get rid of the federal tax credit by the end of the year. The end of the tax credit paired with rising costs due to tariffs adds up to an uncertain future for the solar industry. With that uncertainty looming like a dark cloud, the wise move may actually be to invest in solar now. If you’re even considering going solar, acting sooner rather than later may mean saving more, before tariffs lead to price hikes and the 30% federal tax credit is repealed.
How the Solar Industry is Adapting
The solar industry is now facing serious headwinds after years of growth and innovation under the Biden administration. Despite setbacks, the industry continues to move forward. Manufacturers are continuing to open or expand their production capabilities, with some moving their operations to countries that are not affected by tariffs like Mexico or India. Local installers are adapting as well and adjusting their strategies to work around the increased costs. Some are redesigning systems to rely less on high-tariff components, while others are stocking up on inventory at pre-tariff prices. Others have simply found other suppliers at lower prices.
At the end of the day, despite everything, solar still makes sense in 2025. Even with tariffs and increased costs, going solar is still a wise long-term investment. Utility rates continue to rise across the country, and solar offers a path to grid independence, lower utility bills, and reduced carbon emissions. Thanks to the IRA, tax incentives, including the 30% federal tax credit, still offer homeowners good reason to invest in solar. Many state and local incentives, such as rebates and net metering, offer even more opportunities for solar savings.
As hectic as things may seem, this isn’t the first time the industry is experiencing this kind of as shakeup. In 2018, during Trump’s first term, tariffs on solar panels led to a temporary dip in the industry. However, it quickly rebounded and later boomed during the Biden years. At the end of the day, the demand for clean energy, and the economic benefits of generating it, remains strong.
The Case for Going Solar Now
While the uncertainty in the industry may cause some to hesitate, the best move right now would actually be to act quickly. With prices rising, inventory dwindling, and supply chains disrupted, there’s a clear incentive for homeowners to act sooner rather than later. Solar Discovery has a full inventory of equipment purchased pre-tariff, meaning they won’t be affected by any price hikes. However, this inventory won’t last forever, especially with more changes from the Trump administration potentially on the horizon.
For those considering going solar, waiting could mean paying significantly more down the road for the same system. It could also mean delays in installation and fewer options when it comes to preferred brands for solar panels or battery systems. In an industry plagued by uncertainty, the best course of action is to act fast and secure your long-term savings.
How Solar Discovery Can Help: Tariff-Free Prices
At Solar Discovery, we’ve taken steps to protect our customers from the turbulence of the solar industry. We’ve anticipated the changing markets and acted to ensure rising costs don’t reach the end customer. Through strategic partnerships and agreements, we’ve secured tariff-free pricing through the end of 2025 for solar and battery installations.
We’re committed to making clean energy accessible and affordable, even in volatile global and political environment. By working together with trusted manufacturers and maintaining our inventory, we can continue providing high-quality, affordable solar solutions to our customers. Get in touch with us today to learn more about how you can get started on your solar journey today.
