Solar and Tariffs: What is the Impact and How Can Resonant Help
By Amy Miao
Disclaimer: Information as of 5/20/25. Resonant Energy will continue to monitor additional tariffs and tariff policy as the situation evolves.
Tariff announcements have flooded the news and will likely continue to cause waves in the coming months. Despite the uncertainty, this is what we know to be true:
On Wednesday, April 9th, the Trump administration instituted a 90-day pause on all ‘reciprocal’ tariffs, with the exception of China.
On Monday, May 12th, the Trump administration reduced tariffs on China from 145% to 30%.
The universal 10% tariff remains and applies to nearly all imported goods.
Below, we explore what this means and how Resonant Energy can support you with your potential solar PV projects
Executive Summary
Universal 10% tariff & ongoing Chinese import tariff impacts
The universal 10% tariff and ongoing Chinese import tariffs will likely contribute to a 3-5% increase in total development cost of solar. While tariffs on China have been higher, the solar supply chain we use only relies on China for the smallest components, meaning that tariff is less impactful (with the exception of transformers - details below). This is offset by 30% from the Federal Section 48e Investment Tax Credit (ITC), making the direct cost to customers ~2-3.5%.
Given the Trump administration’s unpredictability on tariffs and tariff policy, those developing solar can anticipate longer equipment lead times and potential supply challenges. We may also see a return to bulk purchasing and hoarding behaviors as was common during the pandemic.
What Resonant Energy can do to help
Resonant has all solar equipment on its watchlist, especially transformers and other key ‘balance-of-system’ equipment, given the greater challenge in sourcing these outside of China.
We will work with you to expedite your material orders as early as it is feasible to get ahead of supply chain disruptions.
Does it still make sense to go solar in 2025 in MA?
Given soaring electricity rates, solar is becoming increasingly necessary to offset utility costs for existing buildings and new construction.
Earlier this year, Boston became the first city in the country to require new buildings to achieve net-zero carbon emissions standards upon opening (i.e., BERDO), which solar can and will help with.
Generous incentives like SMART 3.0 and Solar For All are coming online to financially support your solar projects.
Given the uncertainty on the ITC, consider safe harboring your tax credit this year.
Equipment Analysis
All solar projects involve panels, inverters, racking, and other key ‘balance-of-system’ equipment (e.g., meter sockets, disconnect switches), with some solar projects requiring either upgraded utility transformers or dedicated on-site PV transformers. These are our anticipated implications on each piece of equipment given the universal 10% tariff on imported goods.
*Note: Project costs can vary significantly based on site-specific factors. This is intended only to provide an order-of-magnitude assessment.
Resonant’s Solar Strategy Recommendations
While the tariff situation continues to fluctuate, one thing that is relatively certain is that electricity costs are continuing to rise. Massachusetts electricity rates have historically been high, and Boston residents experience some of the highest energy burdens across the country.
Resonant will continue to support your solar projects by monitoring the trade war and supply chain implications on solar equipment. When necessary and where possible, we will work with clients to expedite equipment ordering in order to ensure compliance with all state and federal incentives. It is worth noting that as of the time of publishing, we have not been experiencing longer than normal lead times for most types of equipment. As always, we will continue to monitor both state and federal policies as changes occur – make sure to sign up for our newsletter to get the latest policy news.
Customers concerned about future cost increases can work with us to place orders earlier than normal in their process and pay a monthly additional warehousing fee if preferred; however, our current perspective is that the cost of warehousing equipment will likely be equal to or greater than the nominal savings on equipment costs due to the currently published tariffs.
Take action today to insulate yourself from the impacts of tariffs on solar projects. Reach out to us here.