The US consumer demand for renewable energy continues to increase, with the more mounted solar panel capacity installed in 2024 than in 2023, which is observed more than in 2022. But the US trade policy is in a stream and high rates are imposed on imported solar panels, which may cause shortage.
I am a scientist who studies the sun, as well as an entrepreneur who works to use his power here on Earth, creating new designs to generate solar electricity. As part of these efforts, I studied market trends and production capabilities in the US and abroad. Currently, US manufacturers are not producing enough solar panels to respond to the demand for the nation, but investments in the industry and federal tax incentives are making progress, although the latest federal moves have created uncertainty.
In 2024, US installers placed enough solar panels to generate 50 gigs of electricity – enough to feed New York in a year.
US manufacturers made only a small part of this – 4.2 GW solar modules in the first half of 2024. It was a big impetus – however – a 75% increase compared to the same period in 2023, and prices were approximately three times higher than import costs.
A look at the recent import
In 2024, the United States imported many more panels than the necessary country, suggesting that developers can be stocking panels for future projects.
Most of these imported panels are made in Asia, especially Malaysia, Vietnam and Thailand. In fact, almost all US panels have used at least some components from abroad. Currently, China is making about 97% of the global delivery of photovoltaic waffles, which are construction blocks of solar panels.
The effects of proposed commercial policies in the United States on the solar industry remain unclear. In 2024, production continued a long -standing increase to benefit from government policies that favor domestic production. And imported panels seem to be planned to suffer from increasing tariffs that are increasing costs.
Domestic production is increased
Since 2010, solar panel production has increased about eight times. But the panels created by the US are more expensive than imported alternatives. In 2024, panels made by the United States usually cost 31 cents of watt, but imported panels, even including tariffs, existed before President Donald Trump’s second term, cost about one -third of this: 11 cents per Wat.
But local manufacturers are reducing costs by increasing production while relying on the government to maintain or increase import tariffs, which can make us panels more competitive in the country in the future.
Relying on overseas sources
However, an increase in domestic production, the demand for solar panels in the United States has increased even faster. To respond to demand, the US is bringing a significant portion of its solar photovoltaic modules.
Tariffs, including a 30% tariff for solar cells and solar panels, starting in 2018, are intended to increase domestic production.
But these tariffs and falling global prices have made solar installations more expensive in the United States than in the rest of the world. The average global price of installed solar systems dropped from $ 1.15 per watt in 2012 to $ 0.72 a 2016, almost half of US installations.
The rates for 2018, as well as the larger circles in 2012 and 2014, displaced the source of US imports of solar panels – from China and Taiwan to Malaysia and South Korea. Manufacturers also build solar panels in Singapore and Germany to maintain access to the US market. And Chinese companies even invest in US solar producers to take advantage of federal incentives and avoid tariffs.
New tariffs appear
Trump’s proposal for new solar tariffs made by foreign goods, including panels and components, particularly aimed at companies owned by Chinese Southeast Asia.
They could include a potential 375% tariff for Thai products – almost four times prices – and 3500% tariff for Cambodia products.
In contrast, US solar panels will be cheaper. But the reduced supply of solar panels will raise even the prices of panels produced in the country, at least until US production can catch up with demand. Some developers have begun to delay or cancel solar installations to cope with increasing costs.
Internal investment
To a large extent to the Law on Reduction of Biden Administration, which came into force in 2022, the US solar panel industry has been observed significant investments.
Since the entry into force of the law, more than 95 GW production capacity has been added to the solar supply chain in the United States, including new facilities that can build enough solar panels in one year to produce nearly 42 GW beyond existing production levels. This growth of production opportunities is largely found in Texas and Georgia.
However, the new administration to shift priorities and commercial policies make the landscape uncertain. Before Trump begins to discuss various trading policies related to solar energy, the industry predicts to install an average of 45 GW solar panels every year for the next decade.
This article is reissued by the conversation, a non -profit, independent news organization that brings you facts and a reliable analysis to help you make sense of our complex world. It is written by: Mojtaba Akhavan-Tafti, Michigan University
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Mojtaba Akhavan-Tafti holds shares in APT Solar Solutions Inc. in Ann Arbor, Michigan. He receives funding from public and private organizations to develop and commercialize three -dimensional solar modules.