How will new trade tariffs affect solar and battery prices?
We take a look at the impact of Trump’s trade tariffs
On 2nd April, President Trump announced wide ranging trade tariffs on products exported by countries across the globe.
In this article, we take a look at how these new trade tariffs might impact the cost of solar and battery installations for UK homes and businesses; and how customers can protect themselves against higher prices.
What’s the history of trade tariffs on solar and battery products?
During his first term in office in 2018, Trump began the ‘trade war’ with China. At the time, he imposed tariffs of up to 30% specifically on Chinese made solar panels. This had the aim of increasing domestic manufacture of solar panels, however in reality it increased solar installation prices for US consumers.
In Trump’s second term we are seeing trade tariffs really move to the fore, with wide ranging tariffs announced on a whole host of countries and regions, including Canada, China, Mexico, Europe and the UK. With a truly global solar supply chain, solar and battery component prices will undoubtedly be influenced if these trade tariffs come into play.
Will trade tariffs impact UK solar and battery prices?
We believe that critical decarbonisation technologies like solar panels should remain free from trade tariffs.
In the UK we currently benefit from no trade tariffs on imports of solar panels, inverters and battery storage. This helps keep costs down for households and business choosing to install these products.
As part of his suite of tariffs, Trump has imposed an eyewatering 104% tariff on goods exported from China to the USA. This includes components within the Tesla Powerwall 3, an extremely popular battery storage product that we install at Good Energy. This is likely to increase the cost of the Tesla Powerwall for UK customers.
He’s also imposed a 10% tariff on exports from the UK to the USA. While this trade tariff won’t directly change the cost of importing goods, there are a range of geopolitical scenarios where tariffs on solar and battery products could be introduced in the UK.
The first scenario is that the UK applies tariffs to imports from the US in direct response to the tariffs they are imposing on us. We are seeing other nations impose similar retaliatory tariffs. Another scenario might see the UK agreeing to impose trade tariffs against China, as a bargaining chip to reduce US tariffs on the UK.
Which solar and battery products might be impacted by new trade tariffs?
The two superpowers in solar and battery manufacturing are the USA and China. Between them, they manufacturer the majority of high-quality cost-effective components that go into solar installs here in the UK.
We’ve already mentioned the likely rise in cost of the Tesla Powerwall, which is manufactuered in the USA using components from China.
Good Energy’s product range also includes Solar Edge inverters and optimisers and Empower micro inverters from the USA; along with Jinko and AIKO solar panels and SigEnergy batteries from China.
Any tariffs imposed by the UK on the USA or China would likely see the cost of these products increasing for installers and end customers.
We continually engage in the market to look at more local alternatives. European solar manufacturers do exist, but at the moment they come with a significant price premium, meaning even if trade tariffs are implemented, our existing product range is likely to remain the best value for customers.
How might new trade tariffs impact the cost of a solar installation?
When a car is imported from one country to another, the whole cost of the car is generally subject to a tariff. So, a 10% tariff would see the price of the car increase by 10% for the end consumer.
In contrast, the cost of a solar and battery installation isn’t all down to the cost of the panels and other components, in fact that only applies to about 50%. The other half of the cost is scaffolding and skilled design and installation costs (which is all value that goes straight back to the local economy).
This means a 10% tariff on a solar and battery system would likely see the overall price increase by 5%. For a typical household 10 panel system with a 5KWh battery, this would mean a price increase of about £500. For a bigger system with a 13.5kWh battery, prices might go up by about £800. Substantial, but at the moment, hypothetical increases.
For a 500kW commercial solar system, a 10% tariff on products could mean an increase in cost of around £15,000, which would slow down the payback period for the business.
How can I get a good price for my solar and battery installation?
Good Energy is one of the largest solar installers for homes and businesses in the UK, having completed over 5,000 home solar panel installations and hundreds of business installations. That gives us the scale to hold a large stock selection of solar and battery products in our UK warehouses, and therefore keep prices more stable for our customers.
A typical turnaround for a household solar panel system can be as little as 6 weeks, and for businesses it can be done in a few months, subject to the appropriate approvals from the DNO and other relevant parties.
With the energy price cap having risen in April 2025, and tariffs not yet impacting installation prices, now could be the perfect time to get solar and secure the financial benefits.
Find out if solar panels are a good investment for your home or business, by getting a quote today.
