U.S. Solar and Storage Costs Under Fragmented Trade: McKinsey Global Energy Perspective 2026
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McKinsey & Company's Global Energy Perspective 2026, reported October 2, 2026, finds that under its "Fragmented Energy Order" scenario, tariffs and trade restrictions raise U.S. clean-technology costs. Battery energy storage faces the largest premium among low-carbon assets, with a 40% to 50% increase in capital expenditure, driven by cathode material tariffs, critical mineral bottlenecks and supply chain localization barriers. Broad duties on steel and aluminum add indirect capital costs to balance-of-system components. The report does not identify specific measures, rates, effective dates or filing requirements.
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- pv magazine USAMcKinsey report finds fragmented trade raises U.S. solar and storage costs
McKinsey & Company's Global Energy Perspective 2026 finds that under its "Fragmented Energy Order" scenario, tariffs and trade restrictions raise U.S. clean-technology costs, with battery energy storage facing the largest premium among low-carbon assets at a 40% to 50% increase in capital expenditure, driven by cathode material tariffs, critical mineral bottlenecks and supply chain localization barriers. The report says broad duties on steel and aluminum add indirect capital costs to balance-of-system components, including aluminum frames, which it puts at roughly 14% of total solar panel production costs, and steel used in ground-mounted tracking and racking.