What Does the Recent Solar Tariff Mean For You?
In January 2018, the United States imposed a 30% tariff on all imported solar products into the U.S. This includes both solar cells and solar panels.
While the tariff will increase the cost of solar products coming into the U.S., the effects will be felt mostly by the manufactures and PV installation companies. The impact on the cost of residential solar systems and the installations will be minimal.
Still, we figured it was time to clear a few things up regarding how this tariff will work what the real impact will be for homeowners.
The Solar Tariff Explained
The recent solar tariff is being calculated as a fixed percentage. The tariff will last four years and will fall by 5 percent every year. This means that, by 2021, the tariff will drop from 30 percent down to 15 percent. By 2022, the tariff will no long be in effect.
To add to that, the cost of solar panels has been steadily declining over the past few years and this trend is expected to continue.
As the cost of solar panels decreased over the next four years, so will the impact of the tariff. In fact, the tariff may even encourage manufacturers to find ways of reducing cost at a quicker pace.
How It Affects Homeowners
For homeowners, the effects of the tariff will be minimal. The cost of a residential solar system will increase by about $500 to $1,000. However, as module costs continue to decrease over the next few years, so will the effects of the solar tariff.
Homeowners should also be aware that there are numerous rebates and tax incentives available to California residents that can help offset the additional cost. Combined with potential state and utility rebates, the net cost for a solar system can be well below the actual cost.
Financing options are available as well, so be sure to consult with your installer to find out what payment terms are available to you.
Save Big With Solar Optimum
Our team at Solar Optimum is well versed when it comes to helping homeowners visualize the big picture and see the balance between energy savings and cash flow. That’s why we offer financing options and help you qualify for all the newest and existing programs and rebates to fit your financial needs.
If you want to hold on to your cash, we've made it easy to take advantage of the financing options and opportunities available. Customers anticipating a utility rebate won't be burdened with a final payment to us. Solar Optimum will defer costs and apply the rebate even before it has been approved. This way, our customers can shine immediately with solar — while we await the rebate.
Years of savings through Solar Optimum can start with little to no upfront costs. And now that solar costs less than traditional power in most communities, we offer financing options to fit every budget. We can make your energy investment for your home easy and affordable. In fact, we'll be at your service every step of the way.
Download our free guide to learn more about purchasing a solar energy system for your home!