Mi-Grid House

House with residential solar system for article about the cost of tariffs

Solar Panel Tariffs – What’s the Bottom Line for a Residential Project?

Before starting, this is not an article defending or attacking the newly imposed US tariffs on solar panels manufactured abroad. It is simply to put the panel tariffs into relation to an entire project.

Incidentally, the Trump tariff has precedent. In 2012, the US imposed punitive tariffs after a Solar-World complaint of “dumping,” or selling under cost, usually in an attempt to drive other companies out of the business. Afterward, the European Union followed in 2013 and imposed similar tariffs. It was estimated by the US Department of Commerce that the solar panels were being sold in the US for 31% less than the cost to manufacture.

At the time, tariffs were supported by U.S. and European solar manufacturers. Yet they were opposed by installers, who saw the “cheap” solar panels are helping sales.

In 2015, anti-dumping solar panel tariffs were kept in place.

As of 2017, almost all solar panels used in the USA are now imported. Even with the tariffs, the prices continued to plummet. The ITC (International Trade Commission) studied and found: “increased solar cell and module imports are a substantial cause of serious injury to the domestic industry. Although the Commissioners could not agree on a single remedy to recommend, most of them favored an increase in duties with a carve-out for a specified quantity of imported cells.”

Based on the above, 30% across the board tariffs are being imposed. They are for 4 years and decline each year, reaching 15% by year 4. Note, though, that according to the Commerce Department, the first 2.5 gigawatt of imported cells are excluded from the additional tariff.

A 30% tariff sounds scary! And if you listen to the news, doom and gloom are predicted. But what effect will a 30% tariff have on a solar project? The 30% only applies to the solar panels.

Typical solar installs are for “grid-tied” solar. This is where the panel “DC” power is converted to AC power with an inverter. This power is then connected to a house’s electrical power system where it is directly used, or exported to the grid.

In Houston, for example, typical pricing for 5kW of grid-tied solar, roof mounted, is around $15,000. The systems include: solar panels, roof mounted racking equipment, electrical combiners, disconnects, solar cables, grid-tied inverter, electrical disconnects, breakers, sales commission, storefront costs, vehicles and a whole lot of labor. Not to mention, some profit for the solar company! The PV panels make up about 40-50% of the cost of the equipment of the installation, but only 20% of the overall project.

Assuming the solar panels are Chinese, adding a 30% tariff will add about 6.7% to a job. On a $15,000 project, this could be about $1,000.

In other cities, the other costs are much higher. A friend from San Diego had 7kW installed on his home. It cost $27,000. The cost of imported solar panels should be similar in Houston and San Diego, so the delta from the tariffs will still be $1,000. In San Diego, the tariff will represent about 3.7% of the project.

While any price increase could hurt a business, these increases on a project basis are relatively minimal. And prices of solar panels continued to drop from 2012-2016 even with the solar tariffs imposed. And this article in Cleantechnica shows that prices are continuing to drop!

As a rule, we should strive for a “level playing field.” That said, even with these “safeguard” tariffs, their effect should be viewed in relation to the effect on a solar install, not as a single part.

Mi-Grid generally does not sell solar panels. Those are sold by the solar installer as part of the installation. But the Mi-Grid energy management system is made in the USA from parts made in the USA!

Seeking an estimate on a custom solar hybrid Mi-Grid energy management system?  Get in touch here to request an estimate.

How a Mi-Grid microgrid can be configured with AC power.

Mi-Grid Can Connect with Either AC or DC Coupling for Solar

We design our microgrids with flexibility in mind. For instance, Mi-Grid can be installed with either AC or DC power coupling. We can power you either way. Our systems can work with solar or wind power too.

AC VS. DC COUPLING MI-GRID

Mi-Grid AC vs. DC

Solar panels can be connected to Mi-Grid in two different ways. They can be DC coupled or AC coupled. Coupling is simply the term we use for the connection of the solar panels to the Mi- Grid system.

Mi-Grid—DC

DC coupling is the traditional way to connect solar panels to the Mi-Grid system. It is also the most efficient. Solar panels are DC (Direct Current), like a battery. It is easiest and most efficient to keep the power DC when storing to the batteries.

Mi-Grid—AC

AC coupling means the power is converted to Alternating Current, like your household power, before connecting to the Mi-Grid system. This means Mi-Grid can be retrofitted onto existing grid-tied solar systems. The advantage is a more simple installation of the solar array.

Which is better?

For Off-Grid systems, where efficiency is extremely important, DC coupling is definitely preferred. With most Grid-Tied applications, the efficiency loss only shows up when the utility is offline. And AC coupling allows a larger solar array to be connected to a smaller inverter battery system, maximizing savings, while reducing installed cost.

Retrofit systems connect the Mi-Grid system with AC coupling. With little change to a standard grid-tied system, you gain peace of mind with battery storage and generator backup. Mi-Grid keeps you going.

AC vs. DC cost

At the time of a new installation, similar AC and DC systems are nearly the same cost.

Where the budget is constrained, an AC coupled essential system is best. The system can be upgraded later if more inverter power is needed.

DC systems are best when off-grid. Efficient storage of the energy provides the most predictable power around the clock.

Looking to build a custom solar power? Great, get in touch with our engineers by submitting a form with your specifications and needs here.

How a Mi-Grid microgrid can be configured with AC power.

Diagram of a Mi-Grid coupled with AC power.

Never Lose Power

Today I did a one year inspection on a Mi-Grid 4000. This is primarily a check on the batteries and to do the yearly maintenance on the generator. With the exception of a few dead bugs inside the generator enclosure (how did that cricket get into the air cleaner?!?), it looked as good as the day it started it up.

One anecdote from the Owner. Earlier in the year, there was a terrible storm. They thought nothing of it. There was one flicker of the lights, but that was it. The next day, he attended a local luncheon where the primary topic was the 5-6 hour electric outage. He looked dumbfounded and said: “What Outage?”.

EXACTLY!!!  With Mi-Grid, you never lose power.

If Mi-Grid is setup in UPS/Backup mode, and the utility goes out, it switches in less than a second to the inverter and batteries. If the batteries become depleted, the generator starts up and comes to full speed, THEN it switches over. You don’t lose power. And when the Generator finishes charging the batteries? It switches back to inverter BEFORE the generator shuts down.

With Mi-Grid, you simply never lose power!

Whole House vs. Essential Circuits

Mi-Grid is a hybrid solar energy system, combining battery storage PV solar with a backup generator. It can provide for all of your power needs, on-grid or off-grid, stationary or mobile, on-shore or off-shore. It can provide your power in times of emergency.

Mi-Grid can provide power two ways. Standard Mi-Grid systems are primarily solar powered. The solar PV panels collect power during the day. What isn’t used is stored in the batteries for use later. The solar is designed to provide average power needs, year-round. The generator provides backup power, in cases of low sunlight or a day of very high energy use.

The generator is sized to recharge the batteries only if they become discharged, running long enough to recharge and providing power at the same time. Generator control is automatic and switching is so fast you may never notice. Even using Air Conditioning in the summer, an appropriately sizes Mi-Grid will use about 1 hour of generator time per day. Some days more and some days, none at all. These Mi-Grids are designed to provide all day power, even Air Conditioning, at all times.

The other way Mi-Grid can work is to provide a smaller Mi-Grid system but a larger generator. Sometimes it is not possible to provide a full size Mi-Grid. This could be due to available space for solar panels or even cost issues. A small Mi-Grid provides essential power at all times and the generator powers larger systems as needed.

The electrical system is split into essential and intermittent. The essentials are powered by Mi-Grid’s inverter output. They never lose power. Intermittent systems are only provided power when the generator is running.

Essential systems include small 110VAC air conditioners, microwave oven, toaster over, small appliances, TVs, lights and ceiling fans. Basically, anything that is 110VAC. Depending on the size of the Mi-Grid, care may be necessary with what is run together. But most day to day items work are fine. For a regular house, small mini-split or window A/C units can be run at night in the bedrooms.

Intermittent systems include large 220VAC air conditioners, 220VAC appliances, electric stoves, electric ovens electric dryers and electric hot water heaters. With a larger Mi-Grid system, some of these systems could be placed in the essentials area. A manual switch is provided to start and stop the generator when the intermittent systems are desired. Mi-Grid still can start the generator if the batteries become low. And the intermittent systems can be used anytime the generator is running.

The Mi-Grid 250 and 500 are 110VAC. You have to use to generator for 220VAC systems. With the Mi-grid 1000 and up, 220VAC appliances can be in the essentials.