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Solar panels imported into the US face up to four layers of trade restrictions: AD/CVD duties, Section 301 tariffs, FEOC restrictions, and, from December 4, 2026, a new Section 232 tariff on imported cells and modules (the Section 201 safeguard expired in February 2026). Combined, these add $0.05-$0.15 per watt to installed cost — or $400-$1,200 on a typical 8 kW residential system. Panels assembled in the US avoid the duties charged on imported finished panels.
Quick Answer
Solar panels face multiple layers of US trade restrictions in 2026: AD/CVD duties (antidumping/countervailing), Section 301 China-specific tariffs, FEOC (Foreign Entity of Concern) rules, and a new Section 232 tariff of 15% plus minimum import prices on imported solar cells and modules from December 4, 2026. The Section 201 safeguard tariff expired February 6, 2026. These tariffs add approximately $0.05 to $0.15 per watt to the cost of imported panels. 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 expired on February 6, 2026, the 8-year limit under U.S. trade law. A broader tariff follows: A Section 232 proclamation signed August 6, 2026 adds a 15% duty on imported polysilicon-based solar products, including solar cells and modules, plus minimum import prices of $0.22 per watt for cells and $0.38 per watt for modules, for goods entered on or after December 4, 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
Polysilicon, cells & modules — from Dec 4, 2026
Imported solar cells, modules, and other polysilicon products, with minimum import prices of $0.22 per watt (cells) and $0.38 per watt (modules). The old Section 201 safeguard expired Feb 6, 2026.
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; expired 2026)
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 safeguard expires Feb 6, 2026 at its 8-year limit; SE Asian AD/CVD duties fully in effect; FEOC deadline July 4
Section 232 tariff proclaimed August 6, 2026: 15% plus minimum import prices on imported solar cells and modules from December 4, 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. 232 (from Dec 4) | Sec. 301 | FEOC | Net Effect |
|---|---|---|---|---|---|
| China (direct) | 30-250% | 15% | 25% | Yes | Effectively blocked |
| Cambodia | 117-292% | 15% | No | No | Heavily tariffed |
| Malaysia | 9-14% | 15% | No | No | Moderate tariffs |
| Thailand | 23-77% | 15% | No | No | Heavily tariffed |
| Vietnam | 56-272% | 15% | No | No | Heavily tariffed |
| South Korea | 0% | 15% (combined) | No | No | Section 232 from Dec 4 |
| India | 0% | 15% | No | No | Section 232 from Dec 4 |
| 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 Section 232 column reflects the August 6, 2026 proclamation, which applies to imports entered on or after December 4, 2026.
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.
A Section 232 proclamation signed August 6, 2026 adds a 15% duty on imported polysilicon-based solar products, including solar cells and modules, plus minimum import prices of $0.22 per watt for cells and $0.38 per watt for modules, for goods entered on or after December 4, 2026. For imports from the EU, Japan, South Korea, Taiwan, Switzerland, and Liechtenstein, the Section 232 duty is set so the combined rate with normal U.S. duties equals 15%; U.K. imports pay 10%.
The minimum import prices work as price floors: imports declared below $0.38 per watt for modules or $0.22 per watt for cells face additional duties. Because the tariff applies at the border, a panel's exposure depends on where its cells and wafers were made: panels assembled in the US from imported cells carry the duty on those cells.
It follows the Section 201 safeguard tariff, which applied to most imported crystalline silicon cells and modules starting in February 2018 and expired on February 6, 2026 after reaching the 8-year limit allowed under U.S. trade law. Unlike Section 201, the new tariff also reaches polysilicon, ingots, and wafers further up the supply chain.
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 (expired) | Expired Feb 6, 2026; Section 232 duty applies from Dec 4, 2026 |
| 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 Section 48E begin-construction window closed July 4, 2026. Projects that began construction on or before that date locked in the full timing pathway; projects starting now still qualify for the 30% credit and the domestic content bonus with FEOC-compliant equipment, but generally must be placed in service by December 31, 2027.
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 232 Tariff (from Dec 4, 2026) | Only on imported cells or wafers | 15% + minimum import price |
| FEOC Compliant | Yes | Varies (often no) |
| Tariff Risk | Lower — limited to imported inputs | 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 not subject to the AD/CVD duties or Section 301 tariffs on imported panels, and it meets FEOC requirements. The Section 232 tariff that starts December 4, 2026 applies to imported cells and wafers used by any US assembler.
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, while MACRS 100% first-year bonus depreciation stays in place (permanently restored by OBBBA), preserving the commercial depreciation 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 today, plus the Section 232 tariff on imports entered on or after December 4, 2026) 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.
Yes. The Section 201 safeguard tariff on imported solar cells and modules expired on February 6, 2026 after reaching the 8-year maximum allowed under U.S. trade law. It had applied to most imported crystalline silicon solar cells and modules since February 2018. A broader tariff takes effect next: A Section 232 proclamation signed August 6, 2026 adds a 15% duty on imported polysilicon-based solar products, including solar cells and modules, plus minimum import prices of $0.22 per watt for cells and $0.38 per watt for modules, for goods entered on or after December 4, 2026. For imports from the EU, Japan, South Korea, Taiwan, Switzerland, and Liechtenstein, the Section 232 duty is set so the combined rate with normal U.S. duties equals 15%; U.K. imports pay 10%.
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. From December 4, 2026, imported cells and modules from these countries also face the 15% Section 232 duty and minimum import prices.
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 carry less tariff exposure, qualify for the FEOC domestic content bonus on commercial projects, and are not subject to the AD/CVD duties on imported panels. From December 4, 2026, panels assembled in the US from imported cells do carry the Section 232 duty on those cells. For Propel financing (lease/PPA), FEOC-compliant panels like Silfab are required.
Yes, a new layer is already scheduled. A Section 232 proclamation signed August 6, 2026 adds a 15% duty on imported polysilicon-based solar products, including solar cells and modules, plus minimum import prices of $0.22 per watt for cells and $0.38 per watt for modules, for goods entered on or after December 4, 2026. For imports from the EU, Japan, South Korea, Taiwan, Switzerland, and Liechtenstein, the Section 232 duty is set so the combined rate with normal U.S. duties equals 15%; U.K. imports pay 10%. It arrives after the Section 201 safeguard tariff expired on February 6, 2026. AD/CVD rates on Southeast Asian panels were finalized in 2024-2025, and further rate adjustments remain possible. 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.
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