Greetings solar enthusiasts! As we continue to navigate the ever-changing landscape of solar power, today, I have some significant updates on tariffs and policies that pertain to the solar industry.
The Biden Administration has shifted its focus onto solar panels – specifically, bifacial solar panels. Remember the bifacial solar panel exemption which allowed certain solar panels to evade the 15% Trump-era tariff? Well, it’s been removed. This change is anticipated to raise the cost of solar projects for commercial, industrial and utility-scale endeavors by 1% to 2%.
Besides the imposition of removed tariffs, the Administration is strongly emphasizing the solar sector. They have plans to bolster its manufacturing base in an attempt to enhance and secure its growth. Their keen focus on solar is evident from the measures taken recently like heightening the import tariffs on Chinese solar cells from 25% to 50%.
Interestingly, in late 2022, tariffs were introduced on solar modules imported from four Southeast Asian countries. But the Administration held off on applying them for two years to maintain business stability. Just as this delay is about to conclude next month, the Administration has clarified its stance – they will closely monitor import patterns to keep the U.S. market from being saturated with stockpiled modules that could bypass these rulings.
As expected, these announcements have prompted various reactions from the industry. Danny O’Brien, President of Corporate Affairs at a popular solar company, expressed support, stating this move solidifies the Administration’s commitment to secure the long-term success of U.S. solar manufacturing.
On the other hand, the Solar Energy Manufacturers Association (SEMA) finds the action a bit wanting. SEMA believes the reinstated 15% tariff, while beneficial, is unfortunately still an inadequate deterrent to anti-competitive trade practices. They hope for brighter days and are enthusiastic about working with the Administration to ensure the full use of all solar panels in tariffed regions within the national boundary by December 2024.
The Treasury Department will also offer further guidance on the domestic content requirements of the Inflation Reduction Act. A safe harbor option will be introduced, providing clean energy developers the opportunity to rely on Department of Energy-provided default cost percentages to ascertain bonus eligibility.
The Administration is also backing the domestic solar panel assembly industry by increasing the cap on importing solar cells under Section 201 tariffs from 5 GW to 7.5 GW. This step is designed to support the 125 GW solar module assembly manufacturing capacity plan, without suppressing new solar cell production.
This move is more significant than it initially appears. Bifacial panels have become increasingly prevalent, representing 98% of all solar panels brought into commercial, industrial and utility-scale projects. An increase in solar panel prices will indeed result in system price hikes of about 1-2%.
However, it’s essential to note, with solar panel prices having fallen from $30-40 per watt a couple of years ago to a much more affordable range now, the effect of these tariffs may not be as detrimental. Even so, as we approach the expiration of the June 2022 tariff delay, and with new AD/CVD cases popping up, the solar industry faces an air of financial uncertainty.
Conclusively, whether you’re considering solar panels for your home or planning a broader solar array for home use, it is crucial to stay updated with the industry’s latest trends. Knowing about these changes can help us make more informed and sustainable decisions towards our solar journey. Until next time, keep shining!
Original Articlehttps://pv-magazine-usa.com/2024/05/16/bifacial-solar-module-tariffs-reinstated/
