By the SmartEnergy Editorial Team
Trade policy is now changing the clean energy business as much as new technology is. The U.S. wants to build more at home and rely less on foreign suppliers. So new tariffs and sourcing rules are changing how — and where — clean energy parts are made.
Solar panels and battery cells have long been made with parts from around the world. But as both the Biden and Trump administrations found, that leaves the U.S. exposed. Material shortages, global tensions and changing “foreign entity of concern” (FEOC) rules have made energy independence a matter of cost and of security.
A Supply Chain in Transition
The U.S. energy shift is now about building at home as much as cutting carbon. BloombergNEF says the U.S. bought more than 80% of its solar panels from Asia in 2024. That share should drop as U.S. factories grow with help from the Inflation Reduction Act’s manufacturing incentives.
New tariffs on Chinese-made batteries and solar materials are also changing project costs. Tariffs on key inputs like graphite and lithium-ion cells push builders to find new suppliers or pay more. These policies are debated. But many experts see them as growing pains for a young U.S. industry.
Trade limits may raise costs at first, but they also help U.S. factories grow.
Domestic Content as Competitive Advantage
For project developers and utilities, the FEOC sourcing rules are both a challenge and a chance. To earn the domestic content bonus credit, a project’s factory-made parts must meet a minimum U.S.-made share. That share goes up based on when building starts. Steel and iron parts must be made in the U.S. These limits are set in the tax code and can change with new laws or IRS guidance. That gives U.S. makers of solar panels, wind turbines and batteries an edge.
The Department of Energy’s Loan Programs Office is already backing new factories across the country. They range from battery plants in Nevada to solar panel plants in Georgia and Ohio. These new plants are starting to close the gap between what the U.S. needs and what it can make.
Implications for Developers and Consumers
In the short term, tariffs and trade limits will likely mean higher equipment costs and longer build times. But over time, the gains could be worth it: a stronger home supply chain, fewer global shocks and, in the end, steadier energy prices.
For customers, that can mean lower long-term energy rates thanks to local production, faster delivery and less exposure to swings in world markets. Clean energy may cost more up front, but it will be built to last — for your wallet and for the planet.
SmartEnergy’s Role in a Changing Market
As a renewable energy provider in deregulated markets, SmartEnergy sits right where these trends meet. The company works with suppliers and utilities that put U.S.-made parts and sustainability first. That way, its customers get energy plans that are both reliable and responsible.
SmartEnergy’s clean energy solutions do more than deliver renewable power. They also support the nation’s goals of energy independence and a more reliable grid. New policies will keep reshaping global supply chains. Through it all, SmartEnergy stays focused on connecting homes and businesses with sustainable electricity options that balance cost, performance and impact.
Powering Progress at Home
Clean energy starts with strong, local roots.
SmartEnergy connects homes and businesses to renewable electricity plans that support U.S. clean energy growth. That helps cut carbon footprints and builds a stronger energy future for America.
