Like everything else, Trump’s trade policy is affecting the price of solar.
Near term, this could affect the spread sheets of clean energy developers. Longer term, as more US manufacturers jump in the space, could negate that objection that I’ve heard so many times, that “solar panels are all made in China”. (they aren’t btw)
“Trade fragmentation makes green products more expensive worldwide relative to non-green products,” European Central Bank analysts warned earlier this year. “This undermines the adoption of green technologies, leading to higher greenhouse gas emissions in the global economy.”
Rising power demand and efforts to slash planet-warming pollution are boosting clean technology markets. But those much-needed goods are becoming pricier and harder to get as governments throw up trade barriers to protect domestic industries and counter China.
Industry data shows U.S. tariffs on copper have increased costs for wire by 11.4%, for switchgear by more than 4% and for capacitors that store power by more than 6%. Domestically made transformers now cost 10% more to produce than when Trump took office, according to Bureau of Labor Statistics figures.
“The transition in certain sectors is still going quite fast, but you do wonder if in the absence of all of this trade conflict, if it could be faster,” said Chris Aylett, a researcher at Chatham House. “It’s difficult to know.”
Building a robust solar manufacturing sector and supply chain in America supports the U.S. economy. It also helps America meet rising demand for secure, affordable, and reliable solar energy. Currently, the domestic PV manufacturing industry has the capacity to produce enough PV modules to meet U.S. demand, but there are gaps in the crystalline silicon value chain. Expanding domestic manufacturing capacity and closing gaps in the supply chain will boost the U.S. economy and create valuable manufacturing jobs.
A strong solar manufacturing sector in the U.S. will also decrease dependence on foreign energy supplies, which will improve energy security.