The White House announced on Thursday its plans to shield domestic solar factories from competition with Chinese imports by revoking a tariff exemption for imported double-sided panels and streamlining the process for projects to claim subsidies for using American-made products.
These measures coincide with President Joe Biden's emphasis on economic policies in the lead-up to the November election, positioning himself against former President Donald Trump. As part of his administration's efforts to combat climate change, Biden has prioritized expanding investment in the manufacturing of clean energy products, aiming to reduce the nation's dependence on Chinese-made goods.
One of the key actions includes eliminating a two-year-old trade exemption that allowed imports of bifacial panels to bypass duties. Initially constituting a minor segment of the market, these panels have now become the primary technology used in utility-scale solar projects.
Additionally, Biden will terminate a waiver on tariffs imposed on solar panels made by Chinese companies in Malaysia, Cambodia, Thailand, and Vietnam. This temporary waiver was granted two years ago to U.S. project developers, enabling them to utilize cheap imports to enhance the cost competitiveness of their facilities. However, with the surge in Chinese solar factory capacity driving down prices, the White House contends that U.S. manufacturing has expanded sufficiently to warrant the removal of this waiver.
John Podesta, Biden's senior adviser for international climate policy, underscored the significance of these actions in bolstering domestic solar producers. However, he acknowledged that the challenge posed by Chinese oversupply remains a pressing issue for U.S. investments in the solar market.
In tandem with these moves, the Treasury Department issued new rules governing how clean energy project developers can qualify for a tax credit aimed at incentivizing the use of U.S. equipment. The rules aim to simplify the qualification process, particularly concerning determining the cost of manufactured products that incorporate components from multiple suppliers across different regions.
Treasury's decision to allow project developers to utilize default cost percentages determined by the Department of Energy aims to facilitate the qualification process for the tax credit. Furthermore, the department is exploring additional measures to support offshore wind developers in qualifying for the domestic content bonus and to encourage the manufacturing of solar wafers.
Qcells, a division of Korea's Hanwha Corp, lauded the Biden administration's measures as “critical to creating tens of thousands of jobs in America,” emphasizing the potential for job creation within the domestic solar industry.
