Why solar components remain expensive in the US

In much of Southeast Asia, solar components are priced significantly lower than in the United States. A 600W Tier 1 solar panel from Canadian Solar or Jinko costs around $80. A 12kW inverter from Deye (marketed as Solar-Aark) is priced at $1,700. A 14.3kWh Dyness battery is available for $1,750. These are end-user prices from distributors, including warranty support.

In contrast, solar system quotes in the US can reach $46,000 for a 12kWh system. In Europe, pricing is closer to Southeast Asian levels. Trina Vertex S panels are available for around €80 each. A Deye inverter sells for about €2,100, including VAT. Battery systems are priced at around €150 per kWh, inclusive of enclosures, wiring, and Battery Management System (BMS).

The difference in pricing is driven by several structural factors:

Regulatory costs
Permitting, inspections, utility approvals, and compliance with building and electrical codes increase costs in the US. These regulatory steps are typically less complex and less expensive in Southeast Asia.

Labor and insurance
Labor costs in the US are significantly higher. Installers often operate as independent contractors who must account for health insurance, workers’ compensation, and compliance costs. In Europe, labor is also regulated but secondary costs are typically lower. In the Philippines and similar markets, labor costs are lower and permitting requirements are simpler.

Tariffs on Chinese equipment
The US imposes high tariffs on Chinese-made solar panels. This limits access to low-cost imports and shifts demand to higher-priced US-made panels. In comparison, Southeast Asian markets and most EU countries still allow Chinese imports with fewer restrictions.

Distribution and corporate overhead
In the US, installation firms bundle hardware with warranty services, installation, and customer support. This model increases the overall cost. Equipment alone may account for less than half the total system price. The rest covers labor, insurance, marketing, and profit margins. Direct-to-consumer distributor models, common in Southeast Asia, are less prevalent in the US.

Market pricing and consumer protection
In the US, consumer protection rules and business liabilities push companies to use more expensive certified equipment and manage risks through additional layers of cost. One installer noted that cheaper components, such as Deye inverters, may not be suitable for firms offering long-term warranties.

Although the core hardware is globally available at similar wholesale prices, total system costs vary significantly by region due to local policy, tariffs, and business practices.

Featured photograph is for representation only.