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Local green energy companies closely watching US solar tariffs

Kristian Smith, project manager at Greenlight Energy, says buy solar now before the price goes up in the second quarter of 2025 (Photograph supplied)

A local alternative energy company is urging Bermudians to invest in solar panels now before American tariffs force the price up.

Last month, the US announced a range of duty of between 21.31 per cent to 271 per cent on solar panels imported from southeast Asian countries, such as Vietnam, Malaysia and Thailand.

“The new tariffs are likely to result in increased costs,” said Kristian Smith, project manager at Greenlight Energy.

“Our solar panels come directly from the United States. The tariffs are planned to take effect shortly after Trump’s inauguration in January, so we can assume that prices may change in the second quarter.”

Greenlight said that made now a great time to invest in solar panel installation.

“We encourage individuals to reach out and secure their place early to avoid potential cost impacts,” Mr Smith said.

Stratton Hatfield, chief sales and marketing officer at Be Solar, is confident prices are coming down in 2025, saying there are always going to be fluctuations in the market (File photograph)

Greenlight is actively evaluating alternative supply chain options, such as sourcing directly from Britain or Asia.

“However, these options may also lead to increased shipping and logistical expenses,” Mr Smith added.

“Once the tariffs take effect, we will carefully assess the cost and benefits of various sourcing strategies to ensure we continue providing the most cost-efficient solar solutions for Bermuda.”

He said the priority was supporting the island’s transition to clean energy while navigating economic challenges in a way that minimised impacts on customers.

Stratton Hatfield, the chief sales and marketing officer at Be Solar, said he was carefully watching the tariff situation in the United States, but did not expect his firm to be directly impacted.

“We import directly from Vietnam to get economies of scale and to avoid tariffs,” he said.

“However, we have sourced products from Italy, Germany, and South Korea in the past. Be Solar is brand neutral so will always search for high-quality products that come with competitive pricing and this may mean we pivot to other countries that are not facing higher tariffs.”

Despite the potential increase in price of foreign-imported solar panels in the United States, he was optimistic the cost of solar panels would come down in Bermuda next year.

“Companies will move to other jurisdictions or we will source products from other countries to avoid the tariffs,” he said.

“The industry is always going to fluctuate but as demand continues to increase, we forecast costs on panels continues to drop.”

Mr Smith hoped that was true but said it was important to be realistic.

“The cost of solar energy is influenced by a variety of factors, both local and international, which can make achieving consistent price reductions a complex process,” he said.

While the global trend shows a decline in solar technology costs due to advancements in manufacturing and economies of scale, Mr Smith said markets like Bermuda faced unique challenges, such as shipping expenses, and the need for specialised installation suited to island conditions.

“At Greenlight, we remain committed to exploring every avenue to make solar energy more affordable for Bermudians,” he said.

“This includes sourcing cost-effective materials, improving operational efficiencies and integrating innovative technologies.

By doing so, we aim to help Bermuda meet its clean energy goals while ensuring solar adoption remains financially accessible to as many residents and businesses as possible.”

The cost increases in America were fixed under the Biden Administration after American solar panel manufacturers complained that South East Asian countries were flooding the market with cheap, poorly made products.

The president-elect, Donald Trump, has promised to be even harder on green energy, having described his energy policies as pro oil with the slogan: “Drill baby, drill”.

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Published December 18, 2024 at 7:59 am (Updated December 18, 2024 at 7:46 am)

Local green energy companies closely watching US solar tariffs

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