Section 201 Solar Tariffs Expired in 2026: What It Means for Panel Prices

Most solar cost guides still quote prices built on top of an import duty that no longer exists. OnFebruary 7, 2026, the Section 201 safeguard tariff on imported solar cells and panels expired, allowing panels to enter the United States duty-free for the first time in nearly eight years. At the same moment, a separate rule — the Foreign Entity of Concern (FEOC) sourcing restrictions tied to IRA Section 40207 — took effect, limiting which imports can fully capture the cost savings.

The result is a market pulled in two directions: a real reduction in landed cost on one hand, and a constraint on eligible supply on the other. If you are shopping for solar in 2026, understanding both forces is the difference between a quote that reflects today's costs and one that quietly still charges you for a tariff the installer no longer pays.

What Was the Section 201 Tariff?

Section 201 of the Trade Act of 1974 lets the United States impose aglobal safeguard tariff when a surge of imports seriously injures a domestic industry. In early 2018, the U.S. International Trade Commission found that imported crystalline silicon solar cells and panels were damaging domestic producers, and the remedy was a four-year tariff that started at30% in 2018 and stepped down each year.

That first remedy was scheduled to run through early 2022. Instead, in February 2022 the tariff was extended for another four years at a lower band, declining gradually toward its final year. By 2025 — the last year of the extension — the rate had fallen to roughly 14%. Throughout its life, Section 201 sat on top of any other applicable duties, so nearly every imported panel sold in the U.S. carried this extra cost. The schedule below traces the full decline.

What Changed on February 7, 2026?

The extension reached the end of its four-year term onFebruary 7, 2026, and it was not renewed. As of that date, imported solar cells and panels are no longer subject to the Section 201 duty — the first time since 2018 that panels can clear U.S. customs without this surcharge. For a market that imports the overwhelming majority of its cells and modules, that is a genuine reduction in the cost of goods.

But the expiry did not happen in isolation. On the same timeline, theFEOC (Foreign Entity of Concern) restrictions tied to IRA Section 40207 took effect. These rules restrict sourcing from entities tied to China (and other countries of concern), with the aim of shifting the U.S. supply chain toward compliant manufacturers. The practical effect is that the duty-free cost break does not flow equally to every panel on the market — it flows most cleanly toFEOC-compliant, non-Chinese supply. For the full picture of how the remaining trade programs (AD/CVD, Section 301, and FEOC) overlap and stack to combined rates above 300% in the worst case, see our companion guide:Solar Tariffs & Trade Policy in 2026: How 4 Overlapping Programs Stack.

What This Means for Panel Prices

Strip away the 14% final-year tariff and the landed cost of a compliant imported panel drops immediately. That is the straightforward, mechanical effect: the same module that an installer cleared through customs in late 2025 now arrives cheaper. In a competitive market, that cost reduction should eventually reach the homeowner through lower per-watt pricing.

The qualifier is "eventually," and the reason is the FEOC constraint. When only a subset of global supply is fully compliant, eligible panels face more demand chasing less flexible supply. That can hold prices up even as the underlying duty disappears — particularly for the premium-tier modules that U.S. residential installers prefer. So you should expect a split: compliant, non-Chinese panels trend cheaper over time, while constrained availability keeps the broader market from falling as fast as a naive "tariff removed = 14% off" calculation would suggest.

It also matters which cost you are looking at. The Section 201 change affects the hardware layer — the panel itself. Soft costs (labor, permitting, customer acquisition, installer margin) are unaffected, and those now make up the majority of a residential system's price. A cheaper panel helps, but it is one input among many in the final quote.

What Homeowners Should Expect in 2026 Quotes

So how does this show up when an installer hands you a price? Realism matters more than optimism. Here is what to actually expect — and what to ask — as you collect quotes this year:

1. Price drops will arrive with a lag. Panels already in U.S. warehouses were imported under the old 14% tariff, and that cost is baked into their price. Installers will draw down that inventory before passing through duty-free savings. Expect gradual improvement over the year, not an overnight reset on February 8.
2. Quotes may not reflect the change yet. Some installers set their price lists seasonally and will not re-cost their hardware mid-pipeline. The duty removal is real, but a salesperson is under no obligation to volunteer the savings — so it is on you to ask.
3. Ask which panel you are being quoted — and its origin.A FEOC-compliant, non-Chinese module is where the cost benefit is cleanest. Knowing the make and country of origin lets you judge whether the price you are shown reflects post-tariff reality. OurPanel Comparison Tool lists tier, efficiency, and origin for common residential modules.
4. Watch the cost-per-watt, not the headline total.Installer margin behavior varies: some pass through hardware savings, others hold price and protect margin. Comparing dollars-per-watt across quotes — which you can do at a state level on oursolar cost-per-watt pages (e.g.,California orTexas) — is the cleanest way to tell who is actually discounting.
5. Do not forget the bigger driver of 2026 cost. The expired residential tax credit (Section 25D) raised the effective cost of ownership far more than this tariff removal lowers it. The duty-free panel helps at the margin, but financing structure — and whether a lease/PPA still captures a federal benefit via Section 48E — usually moves your total cost more than the panel price does.

The practical version: treat the tariff expiry as tailwind on hardware, not a guaranteed discount. Combine it with honest cost-per-watt comparisons and a financing choice that fits 2026's rules, and you are positioned to capture whatever savings the market actually delivers.

Next Steps: Run Your Numbers

A cheaper panel only matters once it is plugged into your roof, your bill, and your financing. The tools below turn the 2026 market shift into a concrete decision for your home:

Want to see how your state stacks up on cost-per-watt, production, and payback — all the factors a tariff change touches? Browse thestate cost-per-watt directory, or model the full ownership-vs-lease picture with theSolar ROI Calculator. If you are still deciding whether solar pencils out at all this year, our"Is Solar Worth It in 2026?" tool walks through the post-25D math state by state.

This article provides general information, not legal, tax, or trade advice. Tariff schedules and FEOC thresholds are summarized from public Section 201 / IRA Section 40207 records and SEIA's tariff tracker; figures are approximate. Verify current rates with U.S. Customs and Border Protection or a trade professional for your specific situation.