What Trump’s 2025 Tariffs Mean for Rooftop Solar

*Update: Shortly after announcing new tariffs on March 4, the Trump Administration issued exemptions for certain goods coming from Mexico and Canada until April 2, 2025.

In March 2025, the Trump Administration enacted new tariffs on imports from Canada, Mexico, and China. While these tariffs may have some effect on the cost of solar panels (even panels made in the U.S.), the larger impact will likely be on the rise in electricity rates from utility providers who rely on imported materials to build and maintain the grid.

Let’s start with the impact on the cost of going solar.

Impact of 2025 Trump Tariffs on Rooftop Solar Costs

On March 4, the Trump Administration increased the existing tariffs on China by 10%, which includes solar panels and solar panel components.

Tariffs on Chinese-made solar components are nothing new and, in fact, were imposed during Trump’s first term and expanded by the Biden Administration in 2024. The idea is to protect and encourage domestic solar manufacturing.

Overall, Trump’s 2025 tariffs are expected to have a minimal impact on the cost of going solar.

For starters, most solar panels purchased by American homeowners do not come from China. They often include Chinese components, but the panels are manufactured in the US and other countries without tariffs. For most rooftop solar systems, the 10% increase won’t apply to the whole panel, but to select components used to make it, such as the frames.

Additionally, solar panels typically make up less than 30% of the total project cost. Within the full scope of a rooftop solar project, a 10% increase to certain solar components ends up being a very slim piece of the pie.

The bottom line is that tariffs are inflationary. While solar panel prices may rise from the latest round of tariffs, the larger impact will likely be seen in your electricity bill.

Related: Trump and the Fate of the 30% Solar Tax Credit

Solar (and Battery) Specific Tariffs Will Influence Solar Pricing in 2025

There are two industry-specific trade cases working their way through the review process. The first is an “antidumping, countervailing duty” case against solar panel imports from Cambodia, Malaysia, Thailand, and Vietnam. Those four countries accounted for 80% of solar panels supplied to the US and preliminary duty rates range from 50% to over 500%. Those rates will become final later this spring and will further influence the price of solar panels. 

Second, is the Chinese “anode” antidumping countervailing duty case. The anode case is targeted at one of the core materials used to make batteries. Anodes represent about 10% of the cost components of energy storage and petitioners have asked for 900% duty rates. If those are accepted it could effectively double the price of a battery overnight as there are not a lot of non-Chinese anodes available in the market at scale. 

Impact of 2025 Trump Tariffs on Electricity Rates

Along with the 10% increase on Chinese imports, the Trump Administration enacted 25% tariffs on goods imported from Canada and Mexico, which includes crucial components to build, maintain, and modernize the electricity grid.

Here are some examples:

• Aluminum and steel from Canada are used in overhead power lines, transmission towers, transformers, and to build new power plants.
• Timber from Canada is used for utility poles.
• Energy products from Canada such as oil, gas, and hydroelectricity are used to power homes, especially in northern states.
• Transformers from Mexico are crucial for adjusting voltage levels as electricity travels from a power plant to your home. These are already in short supply and the U.S. imports roughly 80% of its transformers, with Mexico as its largest supplier.

That’s not to mention a retaliatory 25% export tax on electricity sent from Ontario to Michigan, Minnesota, and New York. All of this amounts to higher electricity costs for utility customers, who ultimately foot the bill for building and repairing the power grid.

Update: On March 11 President Trump called for an additional 25% tariff on Canadian steel and aluminum, raising the effective tariff rate to 50% for these goods on March 12. Since then, Ontario Premier Doug Ford rescinded his 25% export tax on electricity and the Trump Administration set the steel and aluminum tariff at 25%.

The Bottom Line

The new tariffs will push prices up across the board. While they’ll be most visible at the gas pump and grocery store, don’t overlook your electricity bill.

Even with a slight increase in solar panel prices, investing in rooftop solar can protect you from ever-rising utility rates that will likely rise even faster with the new tariffs. And the faster you go solar the more you insulate your project costs from incoming and future tariffs.