In the realm of solar energy, tariff holdups and trade wars are nothing new. The latest proclamation from U.S. President Joe Biden ascends the tariff rate quota of 14.25% on crystalline silicon photovoltaic (PV) cells but expands the potential volume of imported cells from 5 GW to a whopping 12.5 GW. These cells are integral components of solar panels for your home and are relevant whether they are partially or fully assembled into other products.
Brought into effect by the previous administration in 2018, the intention behind these solar tariffs was to limit imports, thereby allowing the U.S. time to amplify its domestic solar supply chain. It was a move to ensure that U.S.-based solar companies had the opportunity to compete on the global platform. However, it took another four years and the initiation of the Inflation Reduction Act of 2022 (IRA) before a steadfast upward trajectory in domestic solar supply became evident.
This upward trend, however, has not been without its challenges. Just last April, a coalition of manufacturers constituting the American Alliance for Solar Manufacturing Trade Committee raised serious concerns. Their claim was against four Southeast Asian nations that allegedly have been exporting dumped goods from China—an act that has been making it increasingly challenging for domestic manufacturers to compete based on costing and ultimately, choosing the best solar company.
The issue is a serious one, given that the current “manufacturing renaissance” in the United States comes under looming threat from heavily subsidized Chinese cells and modules which allegedly infringe antidumping and countervailing duty (AD/CVD) law.
The IRA, however, has taken significant steps toward enlivening the clean energy manufacturing sector in the United States. The Act has encouraged a bevy of solar companies to announce plans for new module manufacturing plants within the U.S. borders.
Yet, it’s important to note that early stages in the supply chain like raw polysilicon, ingots, wafers, and solar cell manufacturing—crucial elements in creating a complete solar array for home use—still lag behind. This is where the new proclamation hopes to bring much-needed change.
By maintaining the 14.25% tariff while allowing an increased quota of imported PV cells, the aim is to “facilitify positive adjustment to competition from imports of certain crystalline silicon PV cells.” The intent is clear: bolster the U.S. based manufacturing capabilities while ensuring that homeowners seeking to install solar panels for their homes have continued access to quality products.
As we explore the ever-evolving landscape of solar energy, it remains essential to stay informed about the larger dynamics at play. Whether you’re a homeowner looking to install a solar array for home use, or you’re a part of one of the numerous solar companies in the U.S., these factors matter. And it is through understanding them that we can truly leverage and honor the power of the sun.
Original Articlehttps://pv-magazine-usa.com/2024/08/13/tariffs-on-solar-cells-remain-volume-increased/
