Increased tariffs on clean energy technologies, particularly lithium-ion batteries, are significantly impacting the cost of utility-scale energy storage projects in the U.S.:
- Higher component costs: Tariffs target critical battery storage components, including inverters and transformers, making them more expensive and difficult to obtain. For Chinese grid batteries specifically, tariffs could reach 82% by 2026, directly increasing procurement costs.
- Project delays and cancellations: Multiple sources indicate tariffs have already caused deals to collapse, with Energy-Storage.news reporting immediate impacts on project pipelines. Smaller projects with tight margins face particular risks of being shelved.
- Supply chain disruptions: The measures threaten the planned 18.2 GW battery storage deployment for 2025, as developers reassess spending decisions amid rising prices. GridStor’s VP warned tariffs could “throttle” industry growth.
- Domestic manufacturing challenges: While intended to boost U.S. production, tariffs paradoxically increase costs for American battery manufacturers like Lyten, potentially delaying their domestic expansion plans.
The compounding effect of reduced Inflation Reduction Act subsidies and tariff-driven cost increases creates financial pressures that could reshape project economics and deployment timelines across the sector.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-will-increased-tariffs-impact-the-cost-of-utility-scale-energy-storage/
