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Solar companies say new tariff proposal would devastate the industry

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The Photo voltaic Vitality Industries Affiliation mentioned Wednesday that implementing tariffs on panels and cells from Malaysia, Vietnam and Thailand, which account for 80% of the U.S.’ panel imports, would have a “catastrophic influence” on the {industry}.

In a letter to Commerce Secretary Gina Raimondo, greater than 190 U.S. photo voltaic firms urged the Division of Commerce to not provoke a commerce investigation.

Wednesday’s letter comes after a number of firms filed an nameless petition with the Division of Commerce in August alleging that China-based photo voltaic cell and module producers are avoiding U.S. tariffs by shifting manufacturing in another country. The Division is anticipated to determine by the tip of the month whether or not to open an investigation.

“The large duties known as for in these petitions, starting from 50% to as excessive as 250%, are already having an antagonistic influence on the U.S. photo voltaic {industry} and, if carried out, would devastate the {industry} and every of our particular person firms,” the letter mentioned.

SEIA estimates that ought to the proposed tariffs go into impact, it might price the {industry} 18 gigawatts of photo voltaic deployment by 2023, which is equal to all U.S. photo voltaic installations previous to 2015. It additionally represents a large chunk of the anticipated buildout over the subsequent few years. The {industry} is anticipated so as to add 30 GW of photo voltaic in 2022 and 33 GW in 2023, based on estimates from vitality consultancy Wooden Mackenzie.

“We imagine the numerous uncertainty is an actual danger for US utility-scale builders – initiatives could possibly be pushed out additional with rising disruptions past poly [polycrystalline] and freight/logistics,” famous analysts at Financial institution of America.

The petitioners declare that the majority of meeting for photo voltaic merchandise imported from Malaysia, Vietnam and Thailand truly takes place in China, which is why these items needs to be topic to tariffs. SEIA disputes this, saying that substantial work is finished exterior of China.

“We can’t emphasize sufficient how damaging these tariffs can be to our firms and the complete American photo voltaic {industry},” the letter mentioned.

This comes because the {industry} faces a number of headwinds, together with provide chain disruptions and better uncooked materials prices.

In June, U.S. Customs and Border Safety issued a Withhold Launch Order on silica-based merchandise from Hoshine Silicon Business attributable to compelled labor issues in China’s Xinjiang area.

Throughout the second quarter photo voltaic prices rose quarter over quarter and 12 months over 12 months throughout all market segments for the primary time since Wooden Mackenzie started monitoring worth knowledge in 2014. Moreover, some key provisions — together with an extension of the Funding Tax Credit score — have been overlooked of the infrastructure invoice. There’s hope throughout the {industry} that the $3.5 trillion spending bundle will embrace substantial funding for clear vitality initiatives.

https://www.cnbc.com/2021/09/22/solar-companies-say-new-tariff-proposal-would-devastate-the-industry.html | Photo voltaic firms say new tariff proposal would devastate the {industry}

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