Anza, a subscription-based data and analytics software platform, released a Q1 2025 report that reveals trends in domestic manufacturing of solar modules and battery energy storage systems (BESS). Increasing numbers of manufacturers are establishing U.S. production in response to domestic manufacturing incentives and the need to mitigate tariff risk.
The domestic content adder is a 10% tax credit bonus intended to encourage solar, wind and battery energy storage developers to use U.S.-made components in projects.
While there is much tariff uncertainly with the new administration, last year the Biden administration had increased the tariff rate on solar cells (whether or not assembled into modules) from 25% to 50%. Similarly the tariff rate on energy storage was expected to rise 25% in 2026, but also has an uncertain future.
The bottom line is that securing U.S.-made solar and storage has been a challenge, and it is to that end that the Anza report shares insight into what developers can find on the market today and what to expect in the near future.
Anza’s insight comes from its recently expanded platform that is intended to help developers, independent power producers, EPCs, and utilities to select and/or purchase domestic solar modules. The company, which was spun out of Borrego in 2023, identifies solar module, cell and storage components customized for specific projects, but it can also offer product price, size, supply-chain factors such as UFLPA and Section 201 tariffs, technical specifications, third-party traceability audits, counterparty risk, and now domestic content.
Supplier availability
There’s no doubt that the number of solar module manufacturers has grown in the past year and will continue the upward trend, with many announcements of planned production facilities. However, demand is strong and some uncertainty surrounds potential shifts in trade policy, tariff structures and more.
Solar modules and cells
There are currently 12 manufacturers of solar modules in the U.S. with 16 expected to be in production by the first half of 2027, a 33% increase. Unfortunately there is ,and will continue to be, a mismatch in the capacity of solar modules to solar cells made in the U.S. Anza reports that there are currently seven cell producers with just ten expected by the first half of 2027, or an increase of 43%.
In this chart, “Cell + modules” refers to products where the cells and modules are manufactured in the U.S.
Battery energy storage systems
Suppliers of battery energy storage systems (BESS) are beginning to set up shop in U.S., primarily driven by proposed Section 301 tariff increases on Chinese imports, the heavy concentration of battery suppliers overseas, particularly in China, and the manufacturing incentives provided by 45X.
According to a recent report from Clean Energy Associates (CEA), the new administration is expected to increase Section 301 tariffs to 60% on multiple goods from China, which CEA says would force battery procurement away from Chinese suppliers to Korean and Japanese suppliers and generally increase prices. CEA said the outcome is likely and will have a moderate-to-high impact on the market as soon as March 2025.
Anza reports that there are currently two BESS suppliers, but it expects that to jump 200% to a total of seven by the first half of 2027.
Anza tracks containers, modules and cells, individually, which an Anza spokesperson told pv magazine USA provides insights into the stages of domestic manufacturing adoption and their alignment with IRS guidance. For example, each component of a battery energy storage system contributes points under the 2025-08 IRS Notice, which helps projects meet the domestic content qualification thresholds.
For 2H 2025, the report notes two suppliers providing fully domestic cells, modules, and containers. While the specific suppliers are not named in the report, this information is available to Anza clients.
There are currently no complete domestic manufacturers of cells, modules and containers, but there will be two complete domestic battery suppliers by the second half of 2025. Anza is tracking seven BESS container level product suppliers that will use U.S. manufactured cells and modules by 1H 2027, either vertically integrated OEMs or through third-party domestic cell or module procurement and US integration. The Anza report says that suppliers aim to reduce these tariff impacts by moving production to the U.S.
Pricing
Because domestic solar modules are in high demand and short supply, suppliers are charging a premium of about $0.12 per watt for fully domestic cells with U.S. assembly, compared to fully imported modules. Anza reports that reasons for high demand are that manufacturers want to take advantage of incentives and mitigate current and anticipated tariff risk.
“We’ve been surprised at the magnitude of the price premium that domestic manufacturers of solar cells are able to charge in the market. This speaks to the significant economic advantages the IRA bestows on domestic manufacturers.” Mike Hall, Anza CE told pv magazine USA.
Section 301 tariffs on Chinese imports currently stand at 7.5% but are expected to rise to 25% at the beginning of 2026, or possibly sooner. Not only could the timeframe speed up but tariffs could reach as high as 60%, the report says.
Three scenarios for ESS pricing
Scenario 1 shows the potential of the Section 301 tariff of 25% moving to 2025. Also, new universal tariffs of 10% to 20% on all imported products may be under consideration by the new administration.
Scenario 2 shows a 10% universal tariff on Chinese goods without accelerating the higher 25% Section 301 tariffs in 2025.
Scenario 3 is the same as Scenario 2 but includes all Asian countries. The black bars indicate the average of estimated domestic content product pricing.
Tariff changes could, in the future, stabilize or decrease BESS pricing slightingly by early 2026, according to the report, because supply chains outside of China may expand. Anza notes that potential “stabilization or slight decrease in pricing in 2026 relies on various “what-if” scenarios, including which of the above-described tariff policies are enacted and whether any adjustments to tax credits are made.” Such adjustments are not accounted for in these scenarios.
Delivery timelines
The numbers of suppliers provided in the report currently have products available for purchase for the delivery time indicated. If a supplier has a delay with it domestic content manufacturing ramp up, Anza said it would adjust its data accordingly.
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