The United States has announced plans to implement a 15% tariff on imports of polysilicon and related products along the solar supply chain, along with minimum import prices for polysilicon as well as solar ingots, wafers, cells and modules. The tariffs and price floor will apply as of 12:01 Eastern Time on December 4, 2026.
The move follows a section 232 investigation into polysilicon imports, in which the Secretary of Commerce found that the quantities and circumstances of polysilicon imports threaten harm to U.S. national security. An announcement from the White House says the administration agrees with the investigation’s findings and recommendations, and sets minimum import prices at $21 per kilogram for polysilicon, $100 per kilogram for polysilicon ingots and wafers, $0.22 per watt for solar cells, and $0.38 per watt for solar modules.
The announcement notes that “in the solar sector, the United States is virtually entirely dependent on imports of solar ingots, wafers, and cells,” and says that it aims to support domestic manufacturing for both solar and semiconductor grade polysilicon. “Without a financially viable market for United States solar-grade polysilicon, United States polysilicon producers cannot thrive and ensure domestic manufacturing of solar- and semiconductor-grade polysilicon and their derivatives that meets United States economic and national security requirements.”
It also lays out terms allowing the U.S. Trade Representative to enter into arrangements with specific trading partners that would alter the applicability of the tariffs and price floors. And the announcement authorizes the Secretary of Commerce to “establish a program to incentivize investment in United States production of raw polysilicon, as well as ingots, wafers, and cells”, and to accept onshoring plans from companies looking to build, refurbish or expand a facility to produce those products, provided it starts construction by January 20, 2029. The White House released a fact sheet here.
Price impacts
According to a recent industry note from Roth Capital Partners, the upcoming Section 232 polysilicon tariffs are set to reset U.S. solar average selling prices (ASPs) materially higher. While the policy framework is designed to incentivize domestic manufacturing when paired with Section 45X production credits and existing trade measures, it introduces immediate cost increases across all major supply chain configurations.
For U.S. module manufacturers importing cells, Roth estimates post-232 pricing will rise to $0.40/W (comprising a $0.22/W cell cost and a $0.18/W domestic assembly cost based on recent Tier 1 manufacturer checks), representing an $0.11/W increase over pre-tariff levels.
For domestic producers importing both wafers and cells, estimated pricing reaches $0.48/W ($0.15/W wafer + $0.15/W cell manufacturing + $0.18/W assembly), reflecting a $0.05/W increase. Meanwhile, directly imported finished modules are projected to jump from pre-232 levels of $0.24/W up to $0.38/W, a $0.14/W premium.
As the industry prepares to absorb the framework over a 120-day implementation period, Roth Capital’s research suggests these equipment price hikes will ripple directly into project economics. The estimated average $0.10/W overall module price increase resulting from the tariffs is expected to require Power Purchase Agreement (PPA) rates to rise by $4.00 to $5.00/MWh to fully offset the additional capital expenditures.
Early reactions
Manufacturers already active in the United States have reacted positively to the news. Mark Widmar, CEO at First Solar, which produces thin-film solar modules that don’t contain polysilicon, called the move one of the most strategically significant trade measures in decades. “For years, China-linked supply chains dumped below cost and circumvented U.S. laws to undercut American workers and their livelihoods, while creating a strategic vulnerability. This action closes that loophole, and it is built to be enforced, with a minimum import price, an ad valorem tariff behind it, and real consequences for violators. That is the fair shot at a level playing field that American manufacturers and workers have earned,” he said in a statement.
Korean headquartered manufacturer Hanwha Q Cells is building one of the largest US solar manufacturing facilities in Georgia. “Today’s decision from the White House balances the reality of where America’s solar energy manufacturing is today while advancing our collective ambition to onshore the entire supply chain from polysilicon to finished panels in the U.S. This decision helps support the billions of dollars invested and the thousands of jobs created at factories around the country. It also helps lay the groundwork for more investments, more jobs, and more innovation to come. Demand for reliable, affordable, and safe energy has never been higher. American solar manufacturers are ready to rise to the occasion,” said Andy Park, Global CEO of Hanwha Qcells.
“This is a decisive win for advanced American manufacturing and investment in domestic energy supply chains. But most important, it helps companies like ours that are creating thousands of high-quality American jobs,” said Dan Barcelo, Chairman & CEO of Austin-based manufacturer T1 Energy. T1 Energy is building a U.S. solar supply chain, including a $510 million 2.1GW solar cell fab in Rockdale, Texas, expected to produce its first cells in early 2027.
“Section 232 changes the economics of solar procurement overnight. Developers are now facing higher equipment costs, while many will also be pushed toward domestic PERC products because there simply aren’t enough domestic TOPCon options available today. That means some projects will no longer pencil under the new economics, but we also expect this policy to become a major catalyst for U.S. manufacturing. The biggest story is surprisingly not modules, it’s wafers. Domestic wafer production has become dramatically more valuable overnight, and we expect to see significant new investment in that part of the supply chain over the next six months,” said Aaron Hall, President of Anza.
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