Regardless of Implemented Tariffs, Solar Panels Are Still Quite Inexpensive
2018 was a year when tariffs on solar cells that are imported. The goal was to spark the manufacture of solar cells in the U.S. However, that was not the case. Importation of solar cells still prevails in the U.S. However, the unlikable scenario actually played out. Solar panels are now cheaper than before the implemented tariffs.
The tariffs are expected to drop to
15% from the initial 30%.
That means that their prices are expected to drop even more in the next two years.
U.S. Solar Market Insight Report that Wood Mackenzie and the Solar Energy Industries Association (SEIA) put out showcases how prices od solar cells and panels changed during 2018.
It is visible that prices dropped each quarter, regardless of tariffs implemented in the first quarter of 2018.
The reason behind this is the difference in demand. As 2017 was a year when solar panels got big, this was the time their prices were the highest. A large number of households switched to solar, which impacted the price of solar panels in 2018.
The sole fact that solar panels are bought for $0.22 per watt in tariff-free international markets confirms how low their prices got.
This shows that Trump tariffs did not have a significant impact on solar panel prices. However, the drop in their prices caused the trend to rise once again. But knowing that their affordable prices are what made them sought after, home owners don’t need to worry as it is unlikely that the prices will significantly rise.
Solar panels continue to be one of smartest investments for the future. It is environmentally friendly and saves money in the long run. Suppose that the policy environment improves this year, we can expect the U.S. to turn the engine on their market once again.