With the recent announcement that the US Department of Commerce could slap hefty tariffs on imported Chinese solar components, many throughout the supply chain have begun to worry that this could slow down PV growth in the States.
With tariffs ranging from 31% to 250%, some experts predict that higher solar panel costs could dampen PV installation demand within residential and commercial markets. In effect, if American homeowners or businesses have to pay more for solar, they might be less likely to move forward with their own PV projects.
In a previous blog post, we discussed that these tariffs will probably not have as damaging effect as many believe. Solar is on the rise worldwide, largely as a result of falling silicon prices and increasing grid utility prices.
But even if demand does slow down a little bit – we’re all about making lemonade out of lemons.
Marketing Domestic Panels As “Tariff-Free”
At US Solar Institute, we sell a number of different leading solar systems, none of which will be affected by the upcoming Chinese tariffs. That’s because our systems are predominantly American and European-made. We believe strongly in their superior quality, and the prices are comparable to what you would pay if you were buying from China.
However, we’ve noticed something interesting. With the news of these tariffs, a number of clients have asked us,
“This system I’m buying….is it tariff-free?”
We were a bit surprised by these questions – having never been asked anything like this before.
Sure, we’ve had “Are these systems ‘American-made,’” or “Where do you source your materials?” But we’ve never had to field “tariff-specific” questions before.
We then realized that “tariff-free” is a real asset – a marketable asset for any solar system provider that uses systems not made in China. It’s almost like those “fat-free” labels you see at the supermarket, except our labels are 100% accurate and the product is actually superior (have you ever tasted fat-free ice cream?).
It’s Not about National Pride – It’s about Pricing Stability
This tariff-free concept really seems to resonate with many of our clients – and not just the ones in the United States. After all, you could easily chalk this growing interest to some sort of national pride for “American-made” products. But we’ve also noticed this trend with many of our Caribbean clients – solar installers and project developers who are more focused on quality and pricing than on nationalities. In fact, a disproportionate number of these questions have actually come from the likes of Jamaica and the Bahamas.
If you currently sell solar systems or components, you should really give some thought to marketing the “tariff-free” products in your line as “tariff-free.” It’s been working for us.