Solar Panel Shortages and Price Increases on the Horizon
Solar panel prices have declined for the past 10+ years. During this time homeowners, business and utilities have benefitted from clean and inexpensive electricity from the sun, and the solar industry has grown considerably. But as with almost all commodity products — ranging from computer chips to clothing to cell phones — almost all solar panels are imported. Unfortunately, the U.S. solar industry is in the cross hairs of an international trade war. Tariffs are being considered that will effectively double the price of solar panels — increasing installation costs for all segments of the solar industry.
The International Trade Commission (ITC) decided in September that there was serious injury to U.S. solar cell manufacturers, so they will be recommending that tariffs be applied on all imported solar cells and panels. Since virtually all solar panels are imported, the tariffs they are considering will effectively double the price of standard solar panels. In advance of these proposed tariffs, almost all available inventory of solar panels is being purchased by utility-scale installers. As we learned in economics 101, when demand goes up and supply is constrained, prices increase. Indeed, prices for popular rooftop solar panels have already increased by 20%. Read more.
Advice for Homeowners from Cinnamon Energy Systems
We’ve been through similar supply shortages and price spikes before — going back to 2001. The last thing we want is to disappoint our customers, be forced to immediately raise prices, or see our business decline. When we saw these shortages developing we locked in inventory of panels from leading manufacturers to ensure that our customers can continue to get quality solar power system at the best possible price.
If you are a homeowner thinking about solar:
- Now is a good time to lock in low panel prices and get your 2017 tax credit.
- When selecting a solar installer, be sure they have inventory on hand to install your system on time.
- Beware of companies that do not guarantee a specific solar panel manufacturer and model; they may substitute an inferior panel because that’s all they can get at the time of your installation.
It’s ironic — prices for the cheapest and cleanest energy source are going up while homeowners are coping with record-high electric rates. If you’ve been on the fence about rooftop solar power, now is the best time to get an estimate for your home or business. Please call us at 408-883-7000 or complete the form below for a free quote. We’ll give you the straight scoop about panel availability, technology, financing and overall process of installing a system. Your questions will be answered promptly and honestly without pushy sales pressure.