Solar panel makers and buyers have mixed feelings on Sec. 232 tariffs

New tariffs are set to raise the cost of solar panels, and the people who make them aren't happy about it either. Starting December 4, 2026, the government is putting a 15% tariff on imported solar wafers, cells, and finished panels, plus a minimum price floor on imported polysilicon (the raw material used to make solar cells). The idea is to boost U.S. manufacturing, but panel makers say it backfires: American factories still have to import most of the upstream parts (silicon, wafers, cells) at these new higher prices, since the U.S. barely makes any of that material itself. That pushes up the cost of domestic panels too, sometimes to the point where they struggle to compete with imports even after the tariff.

One manufacturer said he's already quoting customers at much higher prices than a month ago. Companies that only make cells, rather than complete panels, say the math is especially bad, since their costs now exceed what they can charge, even with tax credits factored in. This may push more companies toward building fully integrated factories that make both cells and panels.

For homeowners, this mostly means solar panel prices are likely headed up, though how much and how soon depends on your supplier and location. Large solar developers say the effects on utility-scale projects may take a year or two to show up, since many already have panels stockpiled. Smaller residential and commercial installations could feel the price shift sooner.