Thursday Dec 08, 2022

Solar Panel Tariffs on China Halted, Causing Astonishment – MetalMiner

npressfetimg-1244.png

For US President Joe Biden, it’s a Hobson’s choice on Chinese solar panel imports. His new move to pause tariffs on imported Chinese-made silicone solar panels for two years has been either hailed or criticized.

The announcement came in the middle of an on-going investigation by the US Commerce Department. Possible trade agreement violations are being discussed, which surprised many in this sector.

Looking for more lucrative sourcing tactics? Click here to learn more about MetalMiner Insights!

Getting the U.S. Solar Panel Market on Track

The US has been one of the slowest nations with solar energy. The latter is the fastest-growing energy source in the US. Betting on it means a faster reduction in demand for fossil fuels.

2022, Adobe Stock

A US Dept. of Energy report recently pointed out that solar power has the potential to power 40% of the US’ electricity needs by 2035.

However, President Biden has a tough call to make. He could take more years to offer incentives to local manufacturers. This hesitation would mean a further delay in US solar projects. The other option would be to quickly go in for foreign manufacturers (read: largely Chinese). The maneuver would set up the required infrastructure in order to save time and get going.

Effect of Solar Panel Imports on American Manufacturers

Former President Donald Trump imposed a tariff on the import of solar panel to stop the influx of cheap goods. This consequently throttled the growth of the solar power sector. None of the follow up actions, like getting congress to appropriately fund American manufacturers have come through.

For example, President Biden has authorized the Defense Production Act (DPA) to accelerate domestic solar production. However, congress has not explicitly appropriated additional funding. As a result, the administration cannot use the DPA for solar projects.

2022, Adobe Stock

The US requires a robust manufacturing capability to meet its clean energy goals. Right now, that’s not happening Biden supporters say. Manufacturing solar energy panels & other components requires the administration to offer financial incentives to US manufacturers. This helps offset higher domestic production costs, estimated to be about 40% over imports.

 

Stay up to date on MetalMiner with weekly updates – without the sales pitch. Sign up now.

U.S. Silicone Solar Panel Infrastructure Needs Stimulation

The US Congress continues to move in this direction, but it will take time to be implemented. For example, the house-passed Build Back Better Bill would extend the investment tax credit. The production tax credit would also encourage the production of solar panels. As a result, costs would go down down on overall production. An increase in manufacturing efficiency would also follow.

But time is something the US cannot no longer afford on green energy resources. Time constraints spurred Biden’s move to temporarily allow imports.

However, US companies and pro-US advocates are not amused and are crying foul.

This report tells a tale of caution to US solar firms. If the Commerce Dept. investigation rules that the Chinese dumped cheap goods, the US could impose retroactive tariffs up to 240%. This would drive up panel prices further. The ruling would also …….

Source: https://agmetalminer.com/mmwp/2022/06/21/solar-panel-tariffs-suddenly-halted-causing-astonishment/

Leave a Reply

Your email address will not be published.

Back to Top