Mike Summers, a homeowner in Ohio, recently had solar panels and a battery backup installed, feeling fortunate to have acted when he did. His $39,000 investment will yield around £8,000 in tax credits, and crucially, he faced no issues with equipment availability. However, other prospective buyers may not be as lucky. Ongoing trade tensions between the United States and China are set to impact the availability and affordability of solar components, many of which originate from Chinese manufacturers.
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China has long dominated the solar supply chain, producing a significant share of the materials and electronics required. Although the United States has invested more than £14 billion into creating a domestic solar supply chain, experts warn it cannot fully replace China’s output. The result is rising prices, as both international and domestic suppliers hike rates in response to anticipated tariffs. This includes North American manufacturers who, despite avoiding the tariffs directly, are responding to increased demand and supply concerns.
For solar companies like YellowLite and ReVision Energy, this uncertainty creates challenges in offering stable pricing and planning ahead. Consumers may be deterred by rising costs, and smaller firms could struggle to remain afloat. Despite sharp declines in solar costs over the past decade, with residential systems dropping more than 70% since 2010, these new pressures could halt progress. Analysts say this is particularly concerning given solar’s crucial role in reducing emissions and combating climate change.
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Trade policy under former President Trump first imposed tariffs in 2018 to limit reliance on China, but critics argue this hampered the sector. Although the U.S. is expanding its own production capacity, experts warn that abrupt changes in policy may cool investment and slow down job creation. Industry leaders encourage homeowners considering solar installation to act swiftly before further cost increases and policy shifts take hold.
