Illinois residents are no strangers to rising energy costs. And with interest in solar energy surging across the state, it’s natural to wonder: what’s driving recent price increases in solar installations? One major culprit is federal tariffs on solar equipment. While these tariffs aim to support U.S. manufacturing, they’ve had complex ripple effects on prices, availability, and project timelines—especially for residential solar consumers. In this post, we’ll break down how these tariffs work, what they mean for you as an Illinois homeowner, and how you can still take smart steps toward solar energy despite the challenges.
Why Tariffs Matter for Illinois Solar Buyers
Federal tariffs on solar components have quietly reshaped the solar landscape. At first glance, a few extra cents per watt may not sound like much, but when you multiply that by the size of an average rooftop system (typically 6 to 10 kilowatts), those costs add up fast. Whether you’re working with a local installer or considering a national provider, those increased material costs usually trickle down to the customer. Illinois homeowners, who already face rising electric bills, are feeling the pinch.
The Solar Tariff Timeline: From Section 201 to Section 301
Now that nearly every corner of the global supply chain has been affected, tariffs have become a huge point of controversy with implications reaching far beyond party lines, but the regulations of today’s news have been years in the making.
2011–2014: First Tariffs on Solar Panels
- Trade petition claims Chinese companies are selling solar panels in the U.S. at unfairly low prices because of government support.
- U.S. responds by placing tariffs (around 31%) on Chinese solar panels to fight unfair pricing.
- Tariffs expand to include panels from Taiwan (some over 50%), leading companies to shift production elsewhere.
2018: Section 201 Tariffs Introduced
- The first Trump administration imposes Section 201 tariffs to protect U.S. solar manufacturers from foreign competition.
- 30% tariff applies to nearly all imported solar panels, raising costs for U.S. solar projects.
2022: Section 201 Tariffs Extended
- The Biden administration extends Section 201 tariffs for another four years, but doubles the import limit for duty-free solar cells and excludes bifacial panels (used in solar farms).
- A new investigation begins into whether Chinese companies are avoiding solar tariffs by using factories in Southeast Asia.
- Ongoing trade tensions and supply disruptions highlight the need for more diversified solar sourcing, increasing pressure on domestic policy.
2023-2024: Section 301 Tariff Enforcement Expands
- It is confirmed that some Southeast Asian companies are helping China dodge tariffs. These companies now face extra fees (some over 50%).
- 15% tariff applies to all solar panels, including bifacial ones. Enforcement of new rules starts mid-year.
- Section 301 tariffs now affect a broader range of solar-related equipment, including inverters, batteries, and some materials used in solar production.
- Tariffs on Chinese solar cells jump to 50%. Developers adapt by buying from other countries, using tax credits, and taking advantage of U.S. manufacturing incentives.
2025: Illinois Policy Update Aligns with Federal Tariff Landscape
- The U.S. now has a 15% tariff on all panels, extra fees on certain Southeast Asian products and more domestic factories on the way, further closing the price gap with imports.
- Illinois introduces Smart Solar Billing in place of full retail net metering.
- Homeowners now look to avoid higher system costs and maximize available incentives as tariff pressures persist.
How Do Federal Solar Tariffs Affect Illinois Solar Cost?
Today, solar tariffs add an estimated 3 to 4 cents per watt to the cost of a solar system. On a 7-kilowatt system, that’s roughly $210 to $280 in additional panel costs alone—and that doesn’t include higher prices for ground mounts, premium materials, and shipping delays caused by strained suppliers. What does this mean for Illinois families? Simply put, higher up-front costs for solar. Homeowners are feeling the impact of the solar installation price increase due to Section 301 in Illinois. And while state incentives help offset some of that, budget-conscious homeowners may still hesitate when seeing slightly higher quotes than expected.
The Ripple Effect on Solar Jobs & Supply Chains
It’s not just the equipment that’s affected. According to the Solar Energy Industries Association (SEIA), tariffs have led to a significant slowdown in deployment, with an estimated 62,000 fewer solar jobs nationwide and billions in delayed or canceled projects. This impacts local communities, too. Fewer jobs, fewer installations, and less momentum in clean energy growth all mean slower progress toward Illinois’s climate and energy independence goals.
More Than Just Panels: Battery Storage & Utility-Scale Projects
Many Illinois homeowners are now considering battery storage to boost energy independence and protect against grid outages. But tariffs are hitting batteries too—especially lithium-ion imports from China, which now face tariffs as high as 145%. And let’s not forget the big picture. Utility-scale solar projects that help stabilize the grid and reduce electricity costs for everyone are also more expensive to build. This slows down progress toward a cleaner, more reliable statewide energy system.
Looking Forward: Domestic Manufacturing Gains & Future Outlook
Not all the news is bad. In fact, there’s a silver lining. U.S. solar manufacturing is expanding rapidly, thanks to a combination of tariffs and the incentives provided by the Inflation Reduction Act (IRA). As more panels are made here at home, prices may begin to stabilize, and project timelines should improve. For Illinois homeowners, this could mean greater access to domestically manufactured systems that qualify for IRA tax credits and rebates.
How Will Solar Tariffs Impact Illinois Residents & Industry?
So what’s the takeaway for solar shoppers in Illinois? Short-term: expect modest price increases and occasional delays, particularly if your installer sources panels or inverters from overseas. Long-term: a stronger, more resilient supply chain that prioritizes local manufacturing and reduces dependence on global markets. Add in the fact that Illinois offers robust solar incentives, and you still have a highly attractive environment for making the switch.
Tariff Tips for Smart Solar Shoppers
Even in a shifting policy landscape, you have options. Here are a few tips to help you navigate solar tariffs and maximize your investment:
- Ask where your equipment is sourced. American-made modules are often seen as the best solar panel sources to avoid tariffs in Illinois, thanks to their potential for extra incentives.
- Lock in quotes sooner than later. If you’re close to making a decision, now’s the time—before further tariffs or supply disruptions impact pricing.
- Bundle battery storage. If you’re concerned about grid reliability, pairing your panels with battery backup can provide peace of mind—and better payback under Illinois net metering rules.
- Work with local experts. Illinois-based installers are familiar with current policies, incentive programs, and how to help you navigate them.
Wrapping It Up: Bigger Picture Takeaways
Tariffs are part of a broader strategy to make the U.S. solar market more self-reliant, but they’re not without growing pains. The important thing to remember is that Illinois remains one of the most solar-friendly states in the Midwest, with generous state incentives, strong net metering policies, and an increasingly responsive grid. By staying informed and making strategic choices, you can still go solar with confidence—and save money while doing it.
What to Do Next
If you’ve been thinking about going solar, now is a great time to take the next step. Start by getting a quote from a trusted local installer, ask about equipment sourcing, and find out which state and federal incentives you qualify for. The clean energy transition is already underway in Illinois—and even with a few hurdles, there’s still a bright future ahead. Thinking about making the switch before more solar tariffs are put in place? Talk to a local expert today and see how solar could work for your home.