Understanding the Solar Tariff
At the beginning of 2019, the U.S. imposed a number of tariffs, including imported solar panels and solar cells. This tariff was set at 30%. Every indication is the U.S. is working to lower these tariffs soon. However, people struggle in understanding the solar tariff and its impact. Understandably so, Southern California homeowners have enjoyed lower energy bills since making the switch to solar power. Those are not going to significantly spike as the solar tariff will primarily affect manufacturers, not homeowners.
How the Solar Tariff Impacts Home Owners
The solar tariff was the result of a fixed percentage of these goods. Over the course of only four years, the solar tariff will be in place. The good news for homeowners is that it will drop by 5% every year. This means that as you ring in the new year soon, the solar tariff will lower to only 25%. As you ring in the next year, your solar tariff will lower again and you’ll only have to pay a 20% tariff.
With the steady pace of newer and less expensive technology, solar panels and cells have been similarly declining. This means homeowners will still be able to enjoy the benefits of lower energy bills and energy credits with carriers. New studies from the Department of Energy places the costs per kilowatt-hour of solar far behind those of coal and gas.
Californians Can Benefit from Solar Incentives
Particularly in California, where programs are so favorable to homeowners using solar power, the effects will be minimal at best. There are many solar incentives that can help offset any additional costs. The tariff may add a few hundred dollars upfront on the installation end, but over time the benefits will significantly overshadow the tariff. If you sell energy credits to your local power provider, you could actually make money off of your solar power system.
Now that you have a better understanding of the solar tariff and you’re considering the switch to solar power, contact us for a free energy evaluation. We can help you reduce your energy bills with this clean renewable source. Call us today at 951-678-7733.