The Short and Long-Term Effects of Trump’s Solar Panel Tariffs on Idaho Solar Customers

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You may have read the “doomsday” articles back in February 2018 describing a cloudy future for the solar industry. Headlines recounted the “billions” of shelved U.S. solar projects due to the tariffs, or the “scramble” within the solar industry to finish projects ahead of the tariff deadline.

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There were some good reasons for these dire warnings. Just as the 2018 tariff on foreign-manufactured solar panels was set to go into effect, the federal solar Investment Tax Credit was also starting to sunset, and the price of solar PV was on a continued decline, signaling that solar was gaining parity in the energy market.

However, even with higher panel prices, declining tax credits, and cheaper electricity costs, the solar industry is starting to see clearer skies up ahead, at least in the short-term.

So what does this mean for solar Boise customers or the future of Idaho solar power in general?

According to the Solar Energy Industry Association (SEIA), the tariffs are not likely to impact the solar industry that much in 2018 and 2019, meaning the cost of installed solar is likely to remain steady, at least in the short-term.

Here are some key takeaways from SEIA’s quarterly report:

· In 2018, solar manufacturing and installation might stagnate a little as the industry adjusts to new tariffs on imported solar panels.

· In 2019, experts expect the industry to rebound as the tariffs go into effect and then decline. Remember, the tariffs are scheduled to last only four years and decrease by 5% each year within that timeframe.

· Between 2018 and 2019, developers might be inclined to speed up existing projects to take advantage of the existing Investment Tax Credit, which will start to sunset in the next few years. This might spike solar installation in the short-term.

All in all, SEIA estimates that photovoltaic (PV) solar is likely to more than double over the next five years, with over 14 GW of PV capacity installed annually in the United States by 2023.So, in 2018 and 2019, the solar tariffs are unlikely to dramatically impact the cost of solar for Idaho’s PV customers.

The longer forecast is less certain, however. According to SEIA, several developers have announced project cancelations, and there will likely be a downstream effect as developers, installers, homeowners, and utility operations work to renegotiate agreements regarding installed rooftop solar panels, also known as known as power purchase agreements.

In states like Idaho, where the Public Utilities Commission has voted to reduce the term of these agreements, this could add some uncertainty to the security and financial viability of long-term solar agreements.

Even with this looming, Idaho solar enthusiasts and potential customers can still take advantage of the federal Investment Tax Credit, which lets you deduct 30% of the cost of the purchase and installation of a residential solar project. This deduction drops to 26% for projects constructed after 2020, and 22% for projects that begin in 2021.

Idaho residents can also take advantage of the state’s Residential Alternative Energy Tax Deduction. This allows you to deduct up to 40% of the cost of a solar installation from your annual income taxes. You can make the 40% deduction in the first year of installation, and then deduct an additional 20% each year for three years.

 About EvenGreen Technology

EvenGreen Technology offers sustainable, competitively priced solar power solutions to solar Twin Falls clients and residents throughout the Northwest. EvenGreen Technology provides a holistic approach to energy efficiency with modern technologies, advanced designs, effective engineering, high-quality installations, consumer education, and reliable products.

For additional information, visit Evengreentechnology.com

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