In the ever-evolving world of solar, recent (and rather significant) developments have emerged with regards to import tariff rates on certain solar cells and modules. These new rulings have great implications not only for solar companies but also for customers looking to install solar panels for their homes; ultimately influencing the accessibility and affordability of solar arrays for homes.
Earlier this month, the United States Department of Commerce made a preliminary decision regarding countervailing duties (CVD) on solar cells, and cells assembled into modules shipped from Vietnam, Cambodia, Malaysia, and Thailand. Solar businesses shipping from these four Southeast Asian countries are now looking potentially at tariff rates ranging from a minimal 0.14% to a whopping 292.61% of the cost of shipped goods.
Interestingly, the rates have been generally considered lower than anticipated. This means they alone won’t represent a significant obstacle to continued exports to the U.S. market for most substantial, Tier 1 suppliers. Six of the seven mandatory respondents for the CVD investigation received rates lying between 0.14% (Trina Solar, Thailand) and 14.75% (QCells, Malaysia). The highest rate, excluding those firms identified under adverse facts available (AFA), was for Thailand at a still manageable 23.06%.
Unfortunately, smaller solar companies that received the higher AFA rates are likely to withdraw from the U.S. market. Although the volume of their exports is quite limited, their withdrawal will likely minimally impact U.S. module availability.
Remember, these new rates only determined CVD, and there’s another part to this puzzle: antidumping (AD) tariff rates. The final decision on these rates is expected in late November or early December. Much like CVD, AD tariffs reflect the practice of selling goods in foreign markets at prices below cost to gain a competitive advantage. They could potentially be added to CVD tariffs and, if high enough, these combined duties could create a meaningful barrier for some companies doing business in the U.S. solar market.
While the CVD rates are unlikely to pose a significant threat to the U.S. supply of solar modules by themselves, the impending uncertainty of the AD tariff rates raises a flag. It’s a matter yet uncertain, but one that can change the dynamics of the solar industry and its supply chain.
In a nutshell, whether you’re a homeowner researching solar panels for your home, or a player in the solar industry, it’s essential to stay informed. The shifting tides of tariff rates can influence everything from the costs of a solar array for home to the operations of solar companies both large and small.
As a passionate solar expert, I’ll be here, sharing news and insights into what’s happening in our industry. If you have any questions or thoughts about this or any other solar-related topics, feel free to reach out. Together, we can continue to bring solar power into the limelight and make a positive impact on our planet.
Original Articlehttps://pv-magazine-usa.com/2024/10/09/analyzing-countervailing-duty-tariff-rates-on-solar-cells/
