Workers install solar panels on the roof of the AltaSea research and development center at the Port of Los Angeles on April 21, 2023 . Mario Tama/Getty Images hide text
The Commerce Department ruled that solar panel manufacturers in four Southeast Asian countries circumvented US trade rules by using Chinese materials where tariffs apply without paying the corresponding duties. These countries (Vietnam, Malaysia, Thailand and Cambodia) account for nearly three-quarters of the solar modules imported into the US.
The ruling announced Friday means new U.S. solar projects will soon become more expensive: Products that violate Obama-era solar tariffs will face additional import taxes on their products.
However, evaluation of the award will not begin until June 2024, when the waiver period established by the Biden administration will expire.
The cost of solar projects is critical as the United States aims to achieve zero greenhouse gas emissions by 2035 from the electricity sector, which currently accounts for a quarter of the nation's total emissions.
The world must limit average global warming to 2.7 degrees Fahrenheit to avoid the worst effects of climate change. It is currently not on track to achieve that goal.
Already in the United States, the average summer temperature has risen by more than two degrees since 1970, and the average winter temperature by more than three degrees.
Solar panels in Detroit, November 16, 2022 . Paul Sanxia/AP has not provided a description.
The investigation shakes up the solar industry until Biden intervenes
The Commerce Department's investigation began in March 2022 in response to complaints from a small US manufacturer, Auxin Solar. This has been a major source of friction in President Biden's administration.
According to the Solar Energy Manufacturers Association, the department's investigations led to a sharp decline in solar plant estimates, as installers feared their projects would become more expensive if the government introduced retroactive taxes or if future purchase costs increased.
National
The solar project has been put on hold as the US investigates whether China has circumvented trade rules.
"In the worst case scenario, you can think about retroactive fees of up to 240 percent," solar procurement manager Leo Azevedo told NPR in May 2022. "It's too risky to order panels right now, and this is just the end."
Energy Secretary Jennifer Granholm discussed the issue in congressional testimony the same month.
"There is a complete end to investment, jobs and self-reliance as we as a nation struggle to fuel our generation," Granholm said. "Of course, I'm very concerned that we won't be able to reach our goal of 100% clean electricity by 2035 if that doesn't end soon."
Commerce Secretary Gina Raimondo speaks at Brown University on March 15, 2022 in Providence, Rhode Island. Charles Krupa/AP hide caption
Commerce Minister Gina Raimondo said her department was legally bound to investigate. He said the trial, conducted by career staff at the International Trade Administration, was completely apolitical, despite its impact on the government's energy agenda.
Biden offers a break
After two months of investigation, Biden reached an agreement. That continued the trade abuse investigation but excluded trade tariffs on solar modules imported from Cambodia, Malaysia, Thailand and Vietnam until June 2024, giving confidence to the solar industry as it plans new projects while the investigation continues.
political
Biden authorized the importation of solar panels and also began to increase domestic production.
The president also invoked the Defense Production Act to help expand American production of solar panels and other clean energy technologies, and directed the federal government to increase the number of American-made solar panels and clean technology products it buys.
The President's move eventually led to a reaction from Congress. A double majority passed the impeachment bill in May of this year amid concerns about the impact the measure would have on American manufacturers.
The president vetoed the law and it had no effect.
President Biden arrives at the Brighton Power Plant to speak about clean energy on July 20, 2022 in Somerset, Massachusetts. Evan Vucci/AP hide caption
finish the investigation
The Commerce Department's decision on Friday did not come as much of a surprise to the solar industry. In December, investigators issued a preliminary ruling that four of the eight sellers they were investigating had evaded US tariffs on Chinese-made solar cells. The latest study reversed that finding for five of the eight providers.
The ruling means that to be exempt from US tariffs, all solar suppliers in Vietnam, Malaysia, Thailand and Cambodia, including companies not specifically investigated by the Commerce Department, must ensure they comply with all trade rules. These claims are subject to potential investigation.
Mamoun Rashid, CEO of Auxin Solar, which initiated the investigation, welcomed the verdict.
"China has been violating US trade stimulus laws for years, and today, with affirmative decisions to prevent domestic trade in Cambodia, Malaysia, Thailand and Vietnam, we have succeeded in filling that gap," Rashid said in a statement, urging Biden. his mind the difference . his abandonment
However, solar energy groups oppose the research, saying it puts jobs in their industry at risk.
"The US Department of Commerce is not aligned with the government's clean energy goals, and we fundamentally disagree with its decisions," said Abigail Ross Hopper, director of the Solar Energy Producers Association. "It will take at least three to five years to ramp up domestic solar power generation capacity, and global supply chains will be essential in the short term."
It is too early to say how the final decision will change the industry.
Biden's exemption, which temporarily exempts the solar industry from new research-related tariffs, should allow installers to adjust their supply chains to comply with U.S. trade rules and buy the industry time to grow national solar.
The elections
Biden is pitching his clean power plan as a jobs plan, topping his climate record
National solar production will grow over the next seven years thanks to investment in Biden's climate bill, the Inflation Relief Act. By 2030, the United States will produce 42 gigawatts of silicon-based solar panels from domestically produced parts, up from almost zero today. .
But when Biden's tariff waiver expires in June 2024, costs could rise, hampering the growth of the solar energy sector.
The White House did not immediately respond to requests for comment on the Commerce Department's findings or whether the president would consider extending the solar rate cuts beyond June 2024.
