Understanding current solar tariffs involves two key concepts: feed-in tariffs (for exporting excess energy) and import tariffs (for panel costs). Feed-in tariffs are credits for surplus solar energy sent to the grid, with rates varying by location and provider, and have been decreasing due to lower wholesale electricity prices. Import tariffs on solar panels, particularly from countries like China, can increase the overall cost of installing solar systems due to taxes on imported components, affecting supply chains and pricing.
Feed-in tariffs
- A feed-in tariff (FiT) is a payment or credit you receive for the excess electricity your solar panels generate and send back to the grid.
- The rate (per kWh) varies depending on your energy retailer and your state or region.
- Rates have been decreasing because of increased solar generation during the day, which lowers the wholesale electricity price.
- Retailers are becoming more flexible in offering various FiT packages to compete for customers.
Import tariffs
- Import tariffs are taxes on solar panels and components brought into a country from other nations.
- These tariffs can significantly increase the final price of a solar system because they increase manufacturing costs.
- They can also affect supply chains, as manufacturers may move operations to other countries to avoid the tariffs.
- The impact on overall installation costs is often a combination of the tariffs, supply and demand, and domestic production costs.
How to find current tariffs
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Feed-in tariffs:Check your energy retailer’s website or contact them directly. Rates are specific to your location and plan.
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Import tariffs:These are government-imposed trade policies. You can find information through government trade websites or energy industry news outlets that cover trade policies.
