Part 5/8:
Zion highlights another major obstacle: tariffs on solar components and electric vehicle (EV) batteries, with particularly harsh implications for the solar sector. Most photovoltaic cells, necessary for solar panels, are imported from China, often manufactured under questionable labor practices. The introduction of a staggering 145% tariff on these imports has made solar power economically infeasible for most US projects.
Wind energy, while slightly insulated due to a broader range of suppliers—particularly in Northern Europe—still faces a substantial 10% tariff, adding further risk and uncertainty. This dual tariff situation effectively halts the expansion of solar solutions and significantly hampers wind energy projects as well.