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Solar panels imported into the US face up to four layers of tariffs: AD/CVD duties, Section 201 safeguards, Section 301 tariffs, and FEOC restrictions. Combined, these add $0.05-$0.15 per watt to installed cost — or $400-$1,200 on a typical 8 kW residential system. Domestically manufactured panels like Silfab avoid all import duties.
Quick Answer
Solar panels face multiple layers of US import tariffs in 2026: AD/CVD duties (antidumping/countervailing), Section 201 safeguard tariffs, Section 301 China-specific tariffs, and FEOC (Foreign Entity of Concern) restrictions. These tariffs add approximately $0.05 to $0.15 per watt to the cost of imported panels. Domestically manufactured panels like Silfab (made in Washington and New York) avoid all tariff layers, while panels from Southeast Asia face AD/CVD rates from 9% to 292% depending on the country of origin.
The United States imports the vast majority of its solar panels. As of 2026, domestic manufacturing accounts for less than 20% of installed solar capacity. This dependence on imports — particularly from China and countries that serve as intermediaries for Chinese manufacturing — has led to a complex web of trade restrictions built up over more than a decade.
The tariff story begins in 2012 when the US Department of Commerce determined that Chinese solar cell manufacturers were selling products in the US at below fair market value (dumping) and receiving illegal government subsidies. This triggered the first round of antidumping and countervailing duties (AD/CVD). Chinese manufacturers responded by shifting cell production to Southeast Asia — Cambodia, Malaysia, Thailand, and Vietnam — which led to a second round of investigations.
In 2018, President Trump imposed Section 201 safeguard tariffs on all imported solar cells and modules, regardless of origin. These tariffs were extended in 2022 and remain in effect through 2026. Separately, Section 301 tariffs target goods from China specifically.
Most recently, the Inflation Reduction Act introduced FEOC (Foreign Entity of Concern) restrictions that do not impose tariffs per se, but restrict federal tax credit bonuses for projects using equipment from adversarial nations. The net result is four distinct layers of trade restrictions, each with different rules, rates, and applicability.
Antidumping & Countervailing
Chinese cells/modules; SE Asian cells with Chinese origin
Global safeguard tariff
All imported crystalline silicon cells and modules
China-specific trade action
Solar products directly from China (most already redirected)
Foreign Entity of Concern
Equipment from China, Russia, Iran, North Korea — commercial projects only
First AD/CVD orders on Chinese solar cells (30-250% duties)
Second AD/CVD round extends duties to Chinese-owned cells made in Taiwan
Section 201 safeguard tariffs imposed on ALL imported cells/modules (30%, declining)
Section 301 tariffs add 25% on goods directly from China
Section 201 extended 4 years; 2-year moratorium on SE Asian AD/CVD enforcement
SE Asian AD/CVD moratorium expires (June); Commerce finalizes new duty rates
OBBBA signed (July 4); FEOC rules take full effect for ITC bonus claims
Section 201 at 14.75%; SE Asian AD/CVD duties fully in effect; FEOC deadline July 4
As of March 2026, solar panels entering the US face different tariff rates depending on where they — and their component cells — were manufactured. Here is a breakdown by country of origin:
| Country/Region | AD/CVD Rate | Sec. 201 | Sec. 301 | FEOC | Net Effect |
|---|---|---|---|---|---|
| China (direct) | 30-250% | 14.75% | 25% | Yes | Effectively blocked |
| Cambodia | 117-292% | 14.75% | No | No | Heavily tariffed |
| Malaysia | 9-14% | 14.75% | No | No | Moderate tariffs |
| Thailand | 23-77% | 14.75% | No | No | Heavily tariffed |
| Vietnam | 56-272% | 14.75% | No | No | Heavily tariffed |
| South Korea | 0% | 14.75% | No | No | Section 201 only |
| India | 0% | 14.75% | No | No | Section 201 only |
| USA (domestic) | N/A | N/A | N/A | No | No tariffs |
Rates shown are approximate ranges based on Commerce Department final determinations and USTR schedules. Individual manufacturer rates may vary. FEOC column indicates whether equipment from this origin is restricted from the 10% domestic content ITC bonus.
The most significant tariff development affecting today's solar market is the end of the two-year moratorium on AD/CVD duties for panels from Cambodia, Malaysia, Thailand, and Vietnam. This moratorium, which shielded importers from duties from June 2022 through June 2024, has expired.
The Commerce Department has finalized AD/CVD rates for these four countries. Cambodia and Vietnam face the steepest duties (up to 292% and 272% respectively for certain manufacturers), while Malaysia faces lower rates (9-14%). These duties apply when panels use Chinese-origin solar cells, which most Southeast Asian factories do.
The practical impact: solar panel prices from these countries have risen as importers factor in duty costs, post bonds, or seek alternative sourcing. This has accelerated interest in domestically manufactured panels and shifted market share.
Unlike AD/CVD duties that target specific countries, Section 201 safeguard tariffs apply to all imported crystalline silicon solar cells and modules — regardless of where they are made. In 2026, the rate is 14.75%.
There is a tariff-rate quota (TRQ) that allows the first 5 GW of imported cells to enter at a lower rate. This quota is designed to protect the US cell manufacturing industry while still allowing sufficient supply. Once the quota is filled, the full rate applies to all additional cell imports.
Section 201 was originally imposed in January 2018 at 30% and has declined on a schedule. The extension through February 2026 may be further extended depending on trade policy decisions. Even panels from tariff-friendly countries like South Korea and India are subject to Section 201.
Tariffs do not appear as a separate line item on your solar quote. Instead, they are embedded in the cost of the panels your installer purchases from distributors, who purchased them from importers, who paid the duties at the border. This is called price pass-through — the tariff cost cascades through the supply chain until it reaches you.
To understand the magnitude, consider a typical solar panel with a manufacturing cost (at the factory gate) of about $0.18-$0.25 per watt. By the time import duties, logistics, and supply chain margins are added, the tariff-related premium is approximately $0.05-$0.15 per watt, depending on the panel's country of origin.
| Cost Component | $/Watt Range | Notes |
|---|---|---|
| Base panel manufacturing | $0.18-$0.25 | Global wafer/cell/module production |
| AD/CVD duties (if applicable) | $0.02-$0.08 | Varies by country of origin |
| Section 201 safeguard | $0.02-$0.04 | 14.75% on imported panels |
| Importer margin & logistics | $0.03-$0.05 | Shipping, warehousing, customs brokerage |
| Net tariff pass-through to homeowner | $0.05-$0.15 | Total added cost on a typical residential system |
System Size
8 kW
18 panels x 440W
Tariff Added Cost
$400-$1,200
at $0.05-$0.15/W
% of Total Cost
2-5%
of installed system price
On an 8 kW system priced at approximately $24,000-$26,000 installed, tariff pass-through represents 2-5% of total cost. While not the largest cost component (labor and balance-of-system equipment typically account for 50-60% of total), tariffs create price volatility and uncertainty that can affect when and how you buy solar.
FEOC stands for Foreign Entity of Concern. Unlike tariffs, FEOC rules do not add a dollar amount at the border. Instead, they restrict which equipment qualifies for the 10% domestic content bonus under Section 48/48E of the Internal Revenue Code. This bonus is worth hundreds of thousands of dollars on commercial projects and directly affects lease/PPA rates for residential customers.
Equipment manufactured by entities headquartered in, owned by, or controlled by entities in China, Russia, Iran, or North Korea does not qualify for the domestic content bonus. This applies to solar panels, battery cells, inverters, and critical minerals used in their production.
The critical date is July 4, 2026. Projects must begin construction before this deadline to claim the domestic content bonus with FEOC-compliant equipment. After the deadline, the bonus may no longer be available regardless of equipment origin, depending on how the OBBBA phase-out provisions are interpreted.
Minimal direct impact. Since Section 25D (residential ITC) expired December 31, 2025, homeowners buying solar with cash or a loan receive $0 federal tax credit regardless of panel origin. FEOC compliance does not affect your federal tax situation. However, FEOC-compliant panels may hold better resale value and avoid future policy risk.
Significant indirect impact. The third-party financing company that owns the system claims the ITC under Section 48/48E. They need FEOC-compliant equipment to get the 10% domestic content bonus. If they use non-compliant panels, they lose the bonus — and that cost may be reflected in higher lease/PPA rates.
Major direct impact. Business owners claiming the commercial ITC under Section 48/48E can stack up to 70% in credits. The 10% domestic content bonus alone can be worth $50,000+ on a mid-size commercial system. Using non-FEOC-compliant equipment means leaving that money on the table.
The tariff landscape creates a genuine trade-off between domestic and imported panels. Domestically manufactured panels like Silfab cost more to produce (US labor, energy, and compliance costs are higher), but they completely sidestep all four layers of import restrictions. Imported panels may have lower factory-gate prices, but by the time duties are assessed, the gap narrows significantly — and on commercial projects, the FEOC bonus can flip the math entirely.
| Attribute | Silfab 440W (USA) | Typical Imported 440W |
|---|---|---|
| Manufacturer | Silfab 440W (USA) | Typical Imported 440W |
| Manufacturing Location | Washington & New York | SE Asia (Vietnam, Thailand, etc.) |
| AD/CVD Duties | None | 9-292% on cells |
| Section 201 Tariff | None | 14.75% |
| FEOC Compliant | Yes | Varies (often no) |
| Tariff Risk | None — immune to trade policy changes | High — rates can change with new rulings |
| Base Panel Cost | Higher manufacturing cost | Lower manufacturing, higher tariff cost |
| Propel Financing Eligible | Yes (required) | No |
| 10% ITC Domestic Bonus | Qualifies | Does not qualify |
Tariffs create pricing uncertainty for the entire solar industry. Rates can change with new Commerce Department rulings, USTR decisions, or executive orders — sometimes with little warning. Here is how NuWatt approaches this reality:
We stock the Silfab 440W, manufactured in Washington and New York. As a US-made panel, it is completely immune to AD/CVD duties, Section 201 tariffs, Section 301 tariffs, and FEOC restrictions. Your price is your price — no tariff surprises.
Some installers add "tariff surcharges" or "import duty fees" as separate line items after quoting. We include all equipment costs, including any tariff pass-through on imported panels, in the upfront quoted price. The number you see is the number you pay.
We offer Hyundai 440W (entry tier), Silfab 440W (FEOC-compliant, mid tier), and REC 460W (premium tier). Each serves a different buyer — budget-conscious, tariff-proof, or performance-optimized. We help you pick the right tier for your situation.
Our Propel financing program (lease/PPA) uses Silfab panels by default because the third-party system owner must claim the commercial ITC under Section 48/48E. FEOC compliance is baked into the program — no extra steps or decisions required.
When you receive a solar quote, ask your installer: "What happens to my price if tariff rates change before installation?" Some companies include escape clauses that allow them to raise prices if import duties increase between contract signing and installation.
At NuWatt, the price in your contract is locked. If you choose the Silfab 440W tier, tariff changes literally cannot affect your cost because the panels are made in the US. If you choose an imported panel tier, we absorb any tariff fluctuation between contract and installation. No surprises.
The solar panel pricing outlook for 2026-2027 is shaped by competing forces. Global manufacturing overcapacity (primarily in China) continues to push factory-gate prices down, while US tariffs and trade restrictions push domestic prices up. The net result depends on which force dominates — and for US consumers, trade policy is currently winning.
Here is what the data suggests:
Panel prices stable to slightly higher as SE Asian AD/CVD duties are fully absorbed. Strong demand for FEOC-compliant panels ahead of the July 4 deadline. Domestic panel wait times may increase. Best time to lock in pricing for commercial projects.
After the July 4 FEOC deadline, demand for domestic panels may ease slightly as the immediate deadline pressure lifts. However, ongoing tariff enforcement and potential new trade actions keep prices elevated. Total installed cost likely flat to +3%.
New domestic manufacturing capacity may begin to moderate US panel prices. However, MACRS bonus depreciation drops to 0% in 2027 (from 20% in 2026), reducing the commercial financial incentive. Residential installed costs may decline 2-5% as installer competition intensifies and soft costs continue falling.
Solar panel tariffs add approximately $0.05 to $0.15 per watt to the installed cost in 2026, depending on the country of origin and the specific tariff layers that apply. For a typical 8 kW residential system, that translates to $400-$1,200 in added cost that gets passed through to the consumer.
AD/CVD stands for Antidumping and Countervailing Duties. Antidumping duties counter below-cost pricing (dumping) by foreign manufacturers. Countervailing duties offset government subsidies. Chinese-manufactured solar cells face combined AD/CVD rates of 30-250%, which is why most Chinese manufacturers moved cell production to Southeast Asia.
No. Chinese-manufactured solar panels are not banned. However, they face multiple layers of tariffs (AD/CVD duties and Section 201 safeguard tariffs) that make them significantly more expensive. Additionally, panels with Chinese-origin cells do not qualify for the 10% FEOC domestic content bonus under Section 48/48E for commercial projects.
The Section 201 safeguard tariff applies to all imported crystalline silicon solar cells and modules regardless of country of origin. In 2026, the rate is 14.75% on cells and modules, with a tariff-rate quota that allows the first 5 GW of cell imports at a lower rate. This tariff was originally imposed in 2018 and has been extended with modifications.
Yes. Panels assembled in Cambodia, Malaysia, Thailand, and Vietnam using Chinese-origin cells face AD/CVD duties. A two-year tariff moratorium ended in June 2024, and the Commerce Department has determined final AD/CVD rates for these countries. Additionally, Section 201 safeguard tariffs apply to all imported cells and modules regardless of origin.
FEOC (Foreign Entity of Concern) rules restrict the 10% domestic content ITC bonus under Section 48/48E. Equipment manufactured by entities in China, Russia, Iran, or North Korea does not qualify. For residential buyers using cash or loans, FEOC has no direct federal tax impact since Section 25D expired. But for lease/PPA customers, the financing company needs FEOC-compliant panels to claim the full ITC.
Yes. US-manufactured panels like Silfab typically cost $0.05-$0.10 per watt more than comparable imported panels. However, they avoid tariff uncertainty, qualify for the FEOC domestic content bonus on commercial projects, and are not subject to AD/CVD or Section 201 duties. For Propel financing (lease/PPA), FEOC-compliant panels like Silfab are required.
The tariff landscape is uncertain. Section 201 safeguard rates are scheduled through February 2026 with possible extensions. AD/CVD rates on Southeast Asian panels were finalized in 2024-2025. New tariffs or rate adjustments are possible depending on trade policy. The trend has been toward higher, not lower, import barriers for solar equipment.
NuWatt offers FEOC-compliant Silfab 440W panels with locked pricing and no tariff surcharges. Get a transparent quote that includes all equipment costs — no surprises.
No obligation. No tariff surcharges. Pricing locked at contract signing.
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