By: Edward Rottmann, Founder and CEO at Chroma Energy Group
As the CEO of a small solar installation company, I’ve witnessed and experienced firsthand this industry’s resilience and the growing complexity of operating within it. Among the most unpredictable challenges are trade tariffs, which have reshaped supply chains, squeezed margins, and altered project timelines in ways few outside our sector fully appreciate.
The Tariff Landscape: A Brief Overview
Since 2012, the U.S. has imposed various rounds of tariffs on imported solar panels – initially targeting Chinese manufacturers for anti-dumping violations and later broadening to global safeguard measures under Section 201. While the original intent was to protect U.S.-based manufacturers, these tariffs have had significant ripple effects throughout the solar supply chain. Now, with a new wave of anti-circumvention tariffs targeting Southeast Asian manufacturers, installers are facing compounded costs that will increase energy prices.
Economic and Market Consequences
According to the Solar Energy Industries Association (SEIA), the Section 201 tariffs led to the loss of over 62,000 jobs, $19 billion in private investment, and the cancellation of 10.5 GW of solar projects between 2017 and 2021. SEIA’s data underscores a broader economic truth: for every job saved in solar manufacturing due to tariffs, 31 other jobs are lost elsewhere in the industry – mostly in installation, development, and related services.
This situation has profound implications for local economies, particularly in emerging solar markets like Alabama, Kansas, and the Dakotas, where smaller firms often lead deployment efforts.
Furthering Resilience
At Chroma Energy Group, we’re taking a few proactive steps that we’d advise any of our partners and colleagues in the solar space to pursue:
- Diversify Procurement Channels: Where possible, consider sourcing from manufacturers with U.S. assembly lines or countries not currently affected by the highest tariff brackets.
- Advocate for Fair, Transparent Trade Policies: Tariffs should not be weaponized at the expense of an entire industry. A clear, consistent trade policy that balances domestic manufacturing goals with the need for affordable, resilient energy is essential.
The solar industry has shown again and again that we can adapt. Module prices have fallen from over $4.00/W in 2010 to under $0.30/W by 2024, diminishing the relative economic impact of tariffs, according to Energea. But that doesn’t mean tariffs are harmless – especially for the small and mid-sized firms driving solar adoption at the local level.
Tariffs are a blunt instrument in a sector that requires precision. If we want to accelerate clean energy deployment while fostering economic opportunity at all levels, we must build a trade framework that works with our solar workforce and not against it.
