BRENTIN MOCK, CITY LAB — This week, a 30 percent tariff that President Donald Trump tacked onto imported solar panels kicked in. Industry experts are predicting it will end up costing the U.S. 23,000 solar jobs in 2018 alone. There’s still a lot of uncertainty about how precisely the new tariff will impact domestic solar-panel sales and jobs, but GTM Research expects it to slow the residential solar market by nearly 10 percent between now and 2022. That could affect the number of solar jobs in the future, especially where the power drill hits the rooftop—more than three-fourths of solar jobs in the U.S. are in demand-side sectors such as installation.
It’s too early to tell what impact this will have on city-located solar jobs with the tariff just kicking in this week. The bulk of the cost of solar projects is mostly in labor, permitting, and installation, even for systems in low-income areas. The cost of panels is usually less than 15 percent of the total cost of these kinds of projects. Still, the future is somewhat uncertain for some organizations that have committed to spreading solar to poor families.
One organization grappling with this issue is Civic Works, a Baltimore nonprofit. It just completed the pilot phase of a new solar initiative that installed solar panels on the rooftops of 10 houses in several low-income communities, including Sandtown-Winchester, the neighborhood where Freddie Gray, who had asthma, was arrestedbefore he was later found dead in police custody.
A loan from the City of Baltimore’s Energy Initiative Loan Programgave the nonprofit the capital to cover all the upfront costs of solar installation on the houses it’s serving. Civic Works will receive additional help from the 30 percent federal solar tax credit to recoup some of those costs, which is generally how low-income solar is financed. Many of the nonprofit’s workers are people who’ve been incarcerated and unemployed. However, nonprofits usually are working on very thin-margin budgets in this game, and can’t afford anything even a little financially surprising.
Millett continued: “The economics are tough to work out with any solar project, though, and doing it on low-income homes adds an extra complexity. But it’s something people are working to overcome, because having a large segment of our population miss out on the benefits of solar just because they’re low-income residents shouldn’t be acceptable.”
Check out the whole article online at City Lab.