New reports indicate that tariffs will likely exacerbate high energy costs, slow renewables and electrification transition. 

Recent reports from Wood Mackenzie and Anza Renewables show that new tariffs on imported energy storage and solar components are sharply increasing the cost of power generation in the U.S. Based on recent projections, prices for utility-scale solar facilities in the US will be 54% more expensive than in Europe and 85% more expensive than a new solar plant built in China. Depending on tariff levels, costs for battery energy storage systems are projected to increase between 12% and more than 50%.

According to Wood Mackenzie,

In a business with 5-to-10-year planning cycles, not knowing what a project will cost next year or the year after is disruptive and causes massive uncertainty for US power industry participants,” said Chris Seiple, vice chairman, Power and Renewables at Wood Mackenzie. “As a result, we could see potential delays in project development and rising power purchase agreement (PPA) prices. We will definitely see impacts on power sector capital projects. The severity depends on what scenarios play out.

The impact also extends beyond solar and storage, contributing to cost hikes for essential grid equipment like transformers and substation components. These rising costs are causing project delays, increasing energy prices, and could prompt a short-term return to gas-fired generation. Without stronger support for domestic manufacturing or changes in trade policy, experts warn that tariffs could undermine U.S. clean energy goals and put added stress on grid reliability.

Maryland Context

Rising tariffs on solar and storage components are expected to drive up energy project costs across Maryland, potentially delaying deployments and further increasing electricity rates. The state’s recent actions to decrease energy bills, including the Renewable Energy Certainty Act and the Next Generation Energy Act, may be less impactful if equipment acquisition costs increase exponentially.

Read the full story. 

Read the Woods Mackenzie Report.

Read the Anza Renewables Report.