What Will Be the Fallout of
After the Trump administration instated tariffs on solar panels coming from some Asian countries, the solar industry had mixed reactions. Biden’s arrival resulted in a moratorium on the tariffs, and now, we could be seeing yet another flip-flopping of the tariffs’ status.
The Senate recently voted to repeal the Biden moratorium. If their decision makes its way into law, the change is expected to have a significant impact on the demand for solar energy.
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Benefits of Biden’s Moratorium Will be Lost
When the moratorium was put in place, it was seen as a positive development for the solar industry, which had been struggling to keep up with the increasing demand for renewable energy sources.
The solar tariffs had raised the prices of imported solar panels and disrupted the supply chain, causing delays and increasing costs for installers and consumers. America’s nascent domestic manufacturing sector was simply unable to meet the demand for affordable solar panels so quickly.
Biden’s moratorium reduced the cost of solar panels, increasing demand for solar installations among customers who could more easily afford them. If the moratorium ends, then the tariffs will once again raise prices.
Industry groups such as the Solar Energy Industries Association (SEIA) have lamented the Senate’s vote.
In a statement, SEIA CEO Abigail Ross Hopper said:
“Unfortunately, politics won the day, and our legislators voted to pull the rug out from businesses that are investing billions of dollars and employing thousands of people in their states.
The solar and storage industry must build more manufacturing capacity in America, and the two-year tariff moratorium provides a bridge for us to do just that. Demand for American solar products far outpaces what we can build now. Curbing supply at this critical time will hurt American businesses and prevent us from deploying clean, reliable energy in the near term.”
Can a Veto Prevent Hit to Solar Sector?
American households and businesses are already having a difficult time affording solar. With the tariffs in place once again, installations become out of reach for many. Between the threat of the IRA’s repeal of solar incentives, and net metering crackdowns throughout the states, the solar sector can’t afford any more hits to demand.
Biden has recognized this crisis point and vowed to veto the repeal when it comes to his desk. While it’s not expected that enough opposition will be gained to override his veto, dissenting Democrats like Senator Manchin pose a threat. It remains to be seen whether these tariffs will come back into play.
Reinstated Solar Tariffs Could Lead to Fewer Solar Appointments
Should the moratorium come to a close, profitable solar appointment leads will likely be harder to come by. It will be essential for contractors to focus their efforts on obtaining quality customers from agencies that can guarantee superior screening and confirmed appointment scheduling.
Grid Freedom helps contractors overcome slumps in demand by delivering qualified solar appointments with homeowners intent on installing as soon as possible. Diligent screening by live agents singles out buyers who are financially prepared and dedicated to their goals. All appointments are pre-scheduled, providing certainty in a market where customer hesitancy is rising.
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