tariff on solar panels
Commerce tariffs are taxes imposed on imported goods by a country's government, often managed by trade departments like the U.S. Department of Commerce, to protect domestic industries, raise revenue, and counter unfair trade practices.

Reuters reports that U.S. President Joe Biden will declare a 24-month tariff exemption for solar panels from four Southeast Asian nations after an investigation froze imports and stalled projects in the country.

Since the end of March, hundreds of large-scale solar power projects have been on hold when the Commerce Department launched an investigation into the imports of photovoltaic (PV) panels from the four Asian countries.

The probe was initiated after U.S. solar product maker Auxin Solar filed a petition against Chinese manufacturers, accusing them of circumventing duties in the U.S. by shipping panels assembled in Cambodia, Malaysia, Thailand and Vietnam and insisting that they are slapped with cost-prohibitive tariffs of up to 250%.

A study has shown that more than 24 GW of solar PV projects are at risk, either being threatened by cancellation or facing delays in the period 2022-2023, due to the probe.

“We applaud President Biden’s thoughtful approach to addressing the current crisis of the paralyzed solar supply chain,” Abigail Ross Hopper, CEO of the Solar Energy Industries Association, said in a statement.

The industry organization estimates that the four countries at the heart of the investigation account for 80% of the solar imports in the U.S.

Biden also plans to invoke the Defense Production Act (DPA) to boost the manufacturing of panels and other clean energy equipment in the U.S.

SunPower and other solar stocks surged on news of the report.

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Adapted from an article written by Veselina Petrova of Renewables Now. Sourced via a partnership with the publication.

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