Hello fellow solar enthusiasts, let’s get down to brass tacks: tariffs may just be the dark cloud looming over our otherwise sunny solar industry. The U.S. solar industry is bracing itself for the possibility of another assault from antidumping and countervailing duty (AD/CVD) tariff enforcement starting this April, and we could feel this sting in our checkbooks soon enough.
In the past, AD/CVD laws have slapped tariffs on solar panels for your home and other imported goods found to be evading import duties by what is known as “dumping.” Basically, this means that products are shipped in bulk to other nations before making their way stateside to circumvent U.S. duties. This time might be no different.
Notable is that the last rounds of these stipulations impacted around 80% of U.S. solar supply. Several Southeast Asian countries such as Vietnam, Cambodia, Thailand, and Malaysia, were allegedly serving as waystations for Chinese solar components before these items sailed for the States. The subsequent tariffs imposed on these suspect components could range from a considerable 50% to an eye-watering 250% of the goods’ shipping cost. Can you fathom that?
The invitation of tariff enforcement birthed a climate of risk and uncertainty in the solar industry. Close to 20% of utility-scale solar capacity was halted or scrapped entirely in 2022 due to this unresolved situation. That’s solar array for home projects, industrial solar installations, and more, all left hanging in the balance. However, there was a silver lining when President Biden enforced a two-year moratorium on fresh solar AD/CVD tariffs in June 2022, but, regrettably, this reprieve runs out this summer.
What’s concerning remains the unpredictability surrounding the impending tariffs. While it is challenging to envisage the height the tariffs could reach in this latest case, industry insiders are hinting that the petitions for AD/CVD cases might start as soon as they can after April 25. Some postulate this early start-off is largely because petitioners want the preliminary decisions on AD/CVD to cast their long shadow during election fever.
What’s more, there could be a new member in the lineup facing this round of AD/CVD investigations. Rumors are buzzing that India may join the four Southeast Asian nations in the spotlight this time around.
This is a critical time for individuals considering solar and solar companies alike. I believe folks who wish to enjoy uninterrupted access to energy should consider investing in a solid solar array for home use. However, as with all large investments, you may want to carefully consider and perhaps even stake out potential fluctuations in market prices, availability, and, yes, potential tariff impacts. The solar company you engage can provide crucial guidance in this regard.
Hence, dear readers, keep your eyes on the sunny horizon and, if you can, your panels in the ground. The future is, ultimately, solar – but there might be some humps to get over along the way. Stay tuned for more solar industry news and insights from your resident expert!
Original Articlehttps://pv-magazine-usa.com/2024/04/04/new-solar-antidumping-tariffs-are-on-the-way-said-roth/
