Unpredictable tariff hikes under the Trump administration are causing chaos across the clean energy sector, and some solar innovators say it's freezing decision-making at the worst possible moment. One of them is Tandem PV CEO Scott Wharton.
Wharton leads the Silicon Valley-based solar panel manufacturer at a time when global demand for clean energy is rising, but so are costs and complexity. A Yale graduate and veteran of the tech sector, Wharton joined Connecticut Public Radio's "All Things Considered" to describe how volatile U.S. trade policy is reshaping the solar industry in real time.
Tariff turbulence fuels investor paralysis
Wall Street often says it prefers bad news to uncertainty. But for Wharton, uncertainty itself has become the crisis.
“In this regard, I’d say it’s kind of a mixed bag for us,” he said. “On one hand, these tariffs … are providing some incentives for us to manufacture in the U.S. and prevent some of the unfair trade practices that I think we’ve talked about China doing. On the other hand … the ups and downs that you see every day make it very difficult … to make decisions.”
Wharton says that indecision—especially among funders—is debilitating.
“It just creates this paralysis,” he said. “For most people, it’s just better to wait than to make a decision, which is really terrible for business.”
Costs are climbing—and everyone’s feeling it
Pressed on whether the new tariffs are driving up Tandem PV’s costs, Wharton was unequivocal.
“In an interrelated world, it’s driving all the costs up,” he said. “We haven’t seen it yet in official stats, but I think we’re seeing it all over the place.”
Higher costs, of course, lead to tough choices. Wharton didn’t sugarcoat how businesses will be forced to pass the increase on to consumers.
“You don’t really have much of a choice,” he said. “All of us are going to have to."
A supply chain built on shifting sand
For manufacturers like Tandem PV, tariffs don’t just mean more expensive imports — they destabilize the entire planning process.
“You have to have some certainty to be able to make decisions,” Wharton explained. “Those are long-term decisions. They’re harder to change.”
The example he gave was sobering.
“Japan’s tariff went from zero to 10% to 34% back to 10%. So how do you even ...?” he said. “It’s just a game of chance.”
Wharton, who has experience navigating trade hurdles from a previous role, says 2017-era tariffs at least allowed companies to shift production to other countries.
“But now,” he said, “it’s like, ‘which country do you go in today?’”
A warning about long-term damage
Despite the headwinds, Wharton remains cautiously hopeful.
“My hope is that there’s enough innovation and smart people … we will figure out a way around it and get through this,” he said.
But he was blunt about the danger.
“My fear is that the friction being created and the unintended consequences may be strong enough that it may overwhelm even the best of intentions,” Wharton said. “If the market is completely frozen … it’s going to have a lot of long-term damage.”
And while he still believes in the resilience of the American economy, he added: “Even a good thing could be screwed up if you try hard enough. And the administration is trying pretty hard.”
