| Work Detail |
With tariffs on Chinese imports blamed, solar and energy storage pricing platform Anza Renewables expects price volatility to continue until there is certainty about U.S. tariff policy. The “ Energy Storage Pricing Insights ” report released by solar and storage pricing platform Anza Renewables for the second quarter has highlighted the largest increase in battery energy storage system (BESS) prices since 2021, when supply chain disruptions following the pandemic impacted the industry. According to the report, the price increases occurred after “successive layers of U.S. tariffs were applied over a 40-day period, and manufacturers readjusted their prices almost overnight.” Despite the price decline, tariffs “outweighed any cost tailwinds this quarter,” and Anza’s report found that, compared to January 2025 levels, prices for alternating current (AC)-delivered systems are 68% higher in the distributed generation market and 56% higher for the utility scale segment. Direct current (DC)-only solutions increased by 68% and 69%, respectively. The Trump administration imposed a 10% universal tariff and a 145% total tariff under the International Emergency Economic Powers Act (IEEPA) on China, but then issued a 90-day pause in mid-May, reducing the IEEPA tariff on Chinese goods to 30%. The IEEPA allows the president to regulate international trade after declaring a national emergency in response to an extraordinary threat to the United States. The May extension reduces the IEEPA rate for China to 30% through August 12, while maintaining Section 301 tariffs under the U.S. Trade Act of 1974. Anzas report notes that suppliers continue to protect their margins through contractual contingency clauses. Tariffs significantly impact the battery energy storage market because its one of the clean energy sectors that still relies heavily on materials from China. Material and transportation prices are expected to increase. Anzas report found that although spot lithium carbonate prices had fallen in early May, cell cost savings could not offset the impact of the tariffs, so delivered system prices still rose. Anza also anticipates that the extended tariffs will increase shipping costs in the third quarter of 2025 as industries look to bring goods into the United States during this period. According to the report, anode costs may not be affected. The International Trade Commission published a preliminary countervailing duty ruling on Chinese anode active material on May 20, with a base tariff of 6.55%. Anza notes that this could have a minimal impact on battery manufacturers at the CC block level, although the company indicates that further analysis of the ongoing antidumping investigation and its potential implications for affected OEMs is required. The report analyzed two typical project sizes: a 40 MW distributed generation project and a 200 MW utility-scale project, both configured for four hours of operation. AC system prices include the battery pack, power conversion system, and energy management system. DC systems include only the battery pack. Anza expects price volatility to continue until the market has certainty regarding the tariffs. Anza, spun off from Borrego in 2023, offers a subscription-based data and analytics software platform for modules and energy storage. Its EnergyStorage Pro service provides on-demand pricing directly from suppliers, product and supplier data, lifecycle costing, capacity maintenance, and comparison tools across more than 20 battery suppliers, including fully domestic and non-Chinese options. |
