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Equipment Tariffs: Planning Solar, Storage and Upgrades

Ohio market insight · Efficiency & incentives

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The short answer

For equipment you install at your own site, the tariffs that matter most are the 50% Section 232 duties on steel, aluminum and copper content; solar-specific trade measures, including new Section 232 duties on polysilicon, cells and modules starting December 4, 2026; and Section 301 duties on Chinese batteries. They land at the same time as federal tax-credit deadlines, especially for solar. The practical response is to get quotes that show tariff exposure separately, order long-lead items early, and line up purchase dates with credit deadlines, confirmed with a tax adviser.

Where tariffs hit on-site equipment

Equipment Main trade measures (as of late Sept. 2026) Planning note
Solar modules and cells AD/CVD orders on Cambodia, Malaysia, Thailand and Vietnam (June 2025); final Commerce AD/CVD determinations on India, Indonesia and Laos (Sept. 2026); Section 232 polysilicon duties and minimum import prices from Dec. 4, 2026 Ask whether modules are already in U.S. inventory; tie timing to credit deadlines
Batteries (lithium-ion, non-EV) Section 301 duty on Chinese batteries rose to 25% on Jan. 1, 2026 Check cell origin and foreign-entity rules for tax credits
Transformers, switchgear, wire Section 232 50% on steel, aluminum and copper content; certain dry-type and control transformers added in August 2025 Order early; lead times can run many months
HVAC, motors, drives Metal-content duties where products fall on the derivatives list; other duties vary by origin Ask suppliers to itemize tariff surcharges
LED fixtures and controls Duties vary by product classification and origin Compare origins; tariff exposure is often a small share of project cost

Two broad measures changed during 2026. The Supreme Court struck down tariffs imposed under the emergency-powers law (IEEPA) on February 20, 2026. A temporary 10% Section 122 surcharge ran from February 24 to July 24, 2026, and Section 301 duties of 10–12.5% on imports from 60 economies took effect July 24, 2026. Goods already covered by Section 232, including the metals derivatives and the polysilicon products, are excluded from that Section 301 action.

Solar: three trade layers and a credit deadline

What changed. The Section 201 solar safeguard tariff expired February 7, 2026. It has been replaced by more targeted measures:

  • AD/CVD orders on cells and modules from four Southeast Asian countries, issued June 24, 2025.
  • Final Commerce determinations on India, Indonesia and Laos, issued September 11, 2026, with dumping margins of about 123%, 94% and 65% respectively, plus subsidy rates. Orders follow only if the International Trade Commission makes a final injury finding.
  • Section 232 polysilicon action (proclamation August 6, 2026; effective December 4, 2026). It adds a 15% duty on polysilicon derivatives, including cells and modules (10% for the U.K.; set so the combined rate is about 15% for the EU, Japan, South Korea, Taiwan and Switzerland). It also sets minimum import prices of $0.38/W for modules and $0.22/W for cells: goods entered below the floor pay duty on the difference.

Why timing matters. Under the July 2025 federal tax law, commercial solar qualifies for the clean electricity credit only if construction began by July 4, 2026, or the system is placed in service by December 31, 2027. Projects that did not start construction by July 4 now have to finish by the end of 2027, and the new module duties begin in December 2026. Modules imported before December 4 are not subject to the new Section 232 duty, so ask installers what is in U.S. inventory and whether their quotes include a tariff-adjustment clause. Foreign-entity (FEOC) restrictions also apply to projects starting after December 31, 2025. Confirm eligibility with a tax adviser before signing.

For the full solar-plus-storage cost picture, see solar and battery storage tariffs, and for payback math under Ohio's net-metering rules (systems sized up to 120% of usage), see commercial solar ROI in Ohio.

Batteries and storage

The Section 301 duty on Chinese lithium-ion batteries for non-EV uses, such as stationary storage, rose from 7.5% to 25% on January 1, 2026. The federal storage credit remains available at full value for projects beginning construction through 2033, stepping down to 75%, 50% and zero for 2034, 2035 and 2036, but FEOC sourcing rules apply to projects starting after 2025. For many Ohio sites, storage pays through demand-charge and capacity-tag reduction; capacity is worth about $120 per kW-year at 2026/27 PJM prices. See energy storage for Ohio businesses.

Lighting, HVAC and controls

Efficiency upgrades are less exposed than solar, because labor and controls make up a larger share of cost. Duties on metal content and imported components can still raise equipment prices. Three other changes matter more for the business case:

  • No utility rebates. None of Ohio's four investor-owned utilities currently offers business efficiency rebates, so projects have to pay back on bill savings, tax treatment or financing.
  • Section 179D ended for construction beginning after June 30, 2026.
  • Higher electricity prices raise the value of every kWh and kW saved, which partly offsets higher equipment costs.

Financing options include C-PACE through participating Ohio communities and USDA REAP guaranteed loans for eligible rural small businesses (new REAP grants paused since April 1, 2026).

Switchgear, transformers and service upgrades

Customer-owned switchgear and transformers carry the same metals exposure and lead-time risk as utility equipment. Distribution transformer lead times fell from about two years in 2024 to about 30 weeks by mid-2025, but custom gear can take longer. If an upgrade depends on utility work, such as a new service or a larger transformer, start that request in parallel. For how the same pressures reach utility delivery rates, see grid equipment tariffs and Ohio delivery rates.

How to plan purchases in this environment

  1. Size the project first. An audit tells you which measures pay back before you commit to hardware. See the commercial energy audit guide.
  2. Ask for itemized quotes. Separate equipment, labor and tariff surcharges; state the country of origin and how long the quote is valid.
  3. Read escalation clauses. Know who pays if duties change between order and delivery.
  4. Order long-lead items first. Switchgear, transformers and large HVAC units set the schedule.
  5. Map deadlines. Solar placed in service by Dec. 31, 2027 (unless construction began by July 4, 2026); 179D ended for construction after June 30, 2026; the 30C EV charger credit ended for property placed in service after June 30, 2026. Confirm with a tax adviser.
  6. Re-run the ROI at current prices. Use the ROI calculator guide, and see funding efficiency without utility rebates.

FAQ

Is it too late to claim the federal credit for commercial solar?

Not necessarily. Projects that began construction by July 4, 2026 are not bound by the 2027 placed-in-service deadline; others must be placed in service by December 31, 2027. Confirm your project's status and FEOC compliance with a tax adviser.

Do the new polysilicon tariffs apply to modules already in the United States?

The Section 232 duty applies to goods entered on or after December 4, 2026. Modules already imported are not subject to it, though their price may still reflect earlier duties.

Are there utility rebates to offset higher equipment prices?

Not from Ohio's investor-owned utilities for businesses at present. Financing such as C-PACE, USDA REAP guaranteed loans for eligible rural businesses, and tax treatment are the main options.

Should I delay an efficiency project until tariffs ease?

Usually not. Trade rules have changed repeatedly, while higher electricity prices increase savings now. Delaying can also miss tax deadlines. Lock pricing with clear escalation terms instead of waiting for a policy change.

Sources

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