What Does the Solar Tariff Mean For You?

We recommend our clients purchase refurbished photovoltaic (PV) solar panels for their off-grid solar systems. Why? They’re a lot cheaper, and when you get them from reputable vendors, you don’t lose substantial performance compared with new ones. 

The slight difference in power output may matter if you have to squeeze as many panels onto the limited surface area of a suburban roof as possible. But here in Caliente, where most people sit on 10, 20, or 40 acres, the total cost is a lot more reasonable if you buy a few more refurbished panels at a deeply discounted price and plop them on the ground instead of spending thousands on mounting mechanisms to optimize the crap out of each one.

There has been an abundant supply of refurbished, high-quality solar panels for the past few years. Most come from decommissioned and upgraded utility-scale solar farms in southwestern states like Arizona, New Mexico, and California. We bought 3 pallets for a good deal and can’t be happier with our current setup.

So, why are solar farms tossing out perfectly functional PV panels?

They replace older (but still good) panels with bifacial ones (which can receive light on both sides) to generate more electricity on the same amount of land. Since utility-scale installations run at a 100% utilization rate daily, they make their money back relatively quickly. 

Even better: Bifacial panels were exempt from the standard 25% solar cell import duty, making the upgrade even more appealing for large installations.

But will the equation change after the recent White House announcement?

The White House announced on May 16, 2024, that the administration is raising the import duty on regular solar cells from 25% to 50%. It will also remove the exemption status for bifacial solar cells. The decision will essentially kill most of the business case for replacing well-performing solar panels with bifacial ones.

As a result, solar farms will likely hold onto their current panels for longer, and the supply of high-quality refurbished panels will dwindle soon. Then, economics 101 kicks in — a drop in supply means a price increase. We expect a dramatic price hike for refurbished solar panels while the costs of new ones may also be affected.

Here’s another piece of calculus about solar panel costs: These items are heavy (say, 50 lb each), so you must factor in shipping and delivery costs. It doesn’t make sense to pay $500 to ship 10 panels (at around $40 to $50 each), but the numbers probably work out if you spend $800 to ship 80. (Note: the numbers are hypothetical.)

That’s why we help our clients pool their resources and place bulk orders. If you want to take advantage of the low costs of refurbished solar panels before the anticipated price hike, hit us up.