American-Made Solar Panels: What to Know

More homeowners are asking for American-made solar panels. Some want to support U.S. manufacturing. Others have heard that U.S.-made equipment comes with a bigger federal credit. Both are fair reasons to ask.

This article explains what "American-made" can mean, how it can lower the rate on a lease or PPA, and what to ask your installer. For the basics of how the parts of a system fit together, start with our guide to how home solar works.

What does "American-made" mean for solar panels?

A solar panel isn't made in one step. Most home panels use crystalline silicon, and the U.S. Department of Energy describes a chain of steps from raw material to finished panel. Each step can happen in a different country.

A panel labeled "assembled in the USA" may have gone through only the last step here, using cells made overseas. A panel with U.S.-made cells went further up the chain. Neither label tells you how well the panel performs, but they mean different things.

The cells aren't the only parts, either. IRS guidance on the domestic content bonus lists a panel's cells, frame, glass, junction box and several other materials as its components. Those can come from still more places, which is why the federal rules measure U.S. content by cost rather than by a label on the box.

So when a quote says "American-made," ask which steps happened in the U.S. The panel and its cells are the two that matter most.

Why does it matter where your panels are made?

For most homeowners, the biggest reason is the price of a lease or PPA. Because the system qualifies for the 30% federal credit, you get a lower rate, and U.S.-made equipment can push that rate lower still. That's often a better deal than buying.

Here's why. With a lease or PPA, the company that owns the system claims the federal clean electricity investment credit, known as 48E, and passes the value to you through your rate. A system that meets the domestic content rules earns 10 more percentage points of credit. Our article on the tax credit with a solar lease explains how that value reaches you.

With a PPA, that shows up as a lower price per kilowatt-hour for the power your panels make. With a lease, it shows up as a lower monthly payment. Our article on what a solar PPA is walks through how those plans work.

There are other reasons people choose U.S.-made panels: supporting local jobs, or simply knowing where their equipment comes from. Those are personal choices, and they're all reasonable.

How does the domestic content bonus work?

The domestic content bonus is an add-on to the 48E credit. Home systems are far below the 1-megawatt size limit, so a qualifying home system gets the full 10 extra percentage points. The system has to meet two tests:

• Steel and iron. Structural steel and iron in the system must be made in the U.S.
• Manufactured products. A set share of the cost of the manufactured parts, such as the panels and inverters, must come from U.S. manufacturing. The share is 50% for systems that begin construction in 2026 and 55% after that.

The system owner has to certify that the project meets these rules. That's paperwork for the company, not for you, but it's why your installer should be able to explain how it documents domestic content.

The bonus can also stack with the energy community bonus, another 10 points for systems in qualifying areas. Our article on energy communities and solar covers that one.

Do American-made panels change the tax credit if you buy?

No. If you pay cash or use a loan, you own the system, and the federal homeowner credit (25D) ended for systems installed after December 31, 2025. The domestic content bonus belongs to the 48E credit, which a homeowner buying their own system doesn't claim. So where your panels were made doesn't change your federal tax picture.

Owning still comes with real benefits, including net metering credits and state programs where you live. Our guide to cash, loans, leases and PPAs compares the four ways to pay. If you buy, choose panels for their warranty, performance and manufacturer, and treat American-made as a preference rather than a tax decision.

What are the new foreign-entity rules for solar?

The 2025 federal law added a second sourcing rule. For systems that begin construction after December 31, 2025, the 48E credit isn't available if the system includes too much "material assistance" from a prohibited foreign entity. That term covers certain companies owned, controlled or influenced by governments the law names as foreign entities of concern.

The IRS issued interim rules in Notice 2026-15 in February 2026, and more guidance is expected. The test looks at the share of the equipment cost that comes from those companies, using supplier certifications among other methods.

You don't need to learn the formulas. What matters to you is that, with a lease or PPA, the system owner is responsible for meeting these rules, and your rate depends on the system qualifying. It's fair to ask how your installer checks its equipment.

What are the trade-offs of American-made solar panels?

U.S.-made equipment has real upsides, and a few things to weigh:

• Availability. The Department of Energy says U.S. factories can make enough finished panels to meet U.S. demand, but there are gaps earlier in the supply chain. Panels with U.S.-made cells are harder to find.
• Price. U.S.-made equipment can cost more. With a lease or PPA, the extra credit can offset that, which is why the rate is the number to compare.
• Quality isn't about the flag. Panels made anywhere can be excellent or poor. The manufacturer's warranties, testing and staying power matter more than the country.
• Design still comes first. A well-designed system on the sunniest parts of your roof matters more than where the panels were built.

Every Evergreen Solar system uses Tier 1 panels and comes with a 25-year comprehensive solar warranty and a 25-year power production guarantee, so your coverage doesn't depend on the panels' country of origin.

What should you ask your installer about American-made panels?

Bring these questions to any solar consultation:

1. Where are the panels made, and where are the cells made? Get both answers in writing.
2. Does my rate depend on the domestic content bonus? With a lease or PPA, ask whether the quoted rate assumes it.
3. How do you document domestic content and foreign-entity compliance? A clear answer shows the installer has done the work.
4. What happens to my rate if the system doesn't qualify? Your contract should say.
5. What are the panel warranties, and who backs them? This matters wherever the panels are made.

Comparing more than one offer? Our article on how to compare solar quotes shows what to line up side by side, and our guide to the parts of a home solar system covers the rest of the equipment.

Want to know what equipment would go on your roof and how it affects your rate? Call Evergreen Solar at (508) 507-2908, and we'll walk you through it.

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