The U.S. solar industry is preparing for rising costs as new tariffs and antidumping duties impact the supply chain. The U.S. Commerce Department has imposed preliminary duties on solar imports from Southeast Asia, where a significant portion of modules for American solar projects are sourced.

On November 29, U.S. trade officials announced preliminary tariffs on solar cells from the four primary exporting countries in Southeast Asia. This decision follows complaints by American manufacturers that foreign suppliers were selling products at unfairly low prices.

China continues to dominate the global solar supply chain, and past U.S. tariffs on Chinese companies led many suppliers to shift production to Southeast Asia. The latest Commerce Department decision builds on previous recommendations to impose countervailing duties following complaints by the American Alliance for Solar Manufacturing Trade Committee (Alliance) earlier this year. The final anti-dumping tariffs are expected to be confirmed in April 2025.

The increased costs associated with these tariffs are expected to contribute to a solar construction price increase, impacting utility-scale solar installations across the U.S. The solar sector experienced significant growth in 2023, largely driven by tax incentives under the 2022 Inflation Reduction Act. However, the solar construction costs in 2025 may rise due to the additional trade restrictions, leading to potential delays and increased expenses for developers.

Industry analysts warn that these new tariffs could slow the expansion of U.S. solar projects, making it more challenging for developers to meet clean energy targets. With final tariff decisions expected in 2025, stakeholders in the solar market are closely monitoring how these measures will influence project costs and supply chain stability. US solar installation forecast by market segment (September 2024)

The solar construction costs in Florida in 2025 could see a significant surge due to new import tariffs and duties, potentially raising the cost of utility-scale solar projects by around 30% ($300/kW), according to estimates from FTI Consulting. This solar construction price increase in Florida for 2025 may slow down U.S. solar installations, reducing projections to 20-25 GW in 2025, compared to 35-40 GW without tariff action, stated Ken Ditzel, Senior Managing Director at FTI Consulting. The effect of these tariffs will largely depend on how they are implemented, but experts predict they will delay solar projects, particularly those that haven’t yet secured imported solar panels, said Leni John, Senior Vice President of Business Operations and Procurement at Strata Clean Energy.

While solar construction prices in Florida for 2025 are expected to rise, U.S. solar manufacturing has expanded rapidly due to incentives from the Inflation Reduction Act. Higher tariffs could further boost domestic manufacturing but are unlikely to fully bridge the supply gap.
“The U.S. solar supply chain is growing but still cannot meet the increasing demand for solar power,” noted a spokesperson from Engie, a clean power developer.

By October, U.S. solar module production capacity had expanded over fivefold to 45 GW, thanks to new tax credits introduced in the Inflation Reduction Act, according to analysts at S&P Global. The U.S. currently hosts over 95 utility-scale solar manufacturing facilities, with nearly 100 new or expanded sites announced since 2022, reports the American Clean Power Association.
In September, First Solar launched a 3.5 GW/year solar panel production plant in Alabama, bringing its domestic manufacturing capacity to 11 GW/year.
Forecast impact of protectionism on US solar manufacturing

China continues to dominate the global solar supply chain, and past U.S. tariffs on Chinese companies led many suppliers to shift production to Southeast Asia. The latest Commerce Department decision builds on previous recommendations to impose countervailing duties following complaints by the American Alliance for Solar Manufacturing Trade Committee (Alliance) earlier this year. The final anti-dumping tariffs are expected to be confirmed in April 2025.

With solar construction costs in Florida set to rise in 2025, now is the perfect time to lock in current rates. By acting quickly, you can take advantage of today’s lower prices and secure high-quality solar installation before costs increase. Getting started is simple—just request a free, no-obligation solar estimate today!
To receive your solar installation quote, give us a call at (888) 735-2641 or schedule an estimate online. With your quote in hand, you’ll know exactly what to expect before solar construction price increases in Florida take effect.
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