US to Probe Imported Asian-Made Solar Panels, Considers Imposing Tariffs

The US will conduct an investigation concerning Asian-made solar panels which could lead to imposed tariffs.
Using green energy such as solar panels can help curb the use of fossil fuels, such as coals.

The US will investigate imported Asian-made solar panels, particularly from Cambodia, Thailand, Malaysia, and Vietnam, leading to tariffs.

US to Investigate Asian-made Solar Panels

According to US trade officials, they will investigate Asian-made solar panels. These are panels imported from Cambodia, Thailand, Malaysia, and Vietnam. Auxin Solar, a solar manufacturer, based in San Jose, California, requested the investigation. It disputed that Chinese manufacturers switched productions to those countries. It helps them evade paying US taxes for almost a decade on Chinese-made solar goods.

Solar industry trade groups suggested that the enquiry would instantly baulk project development. Also, it will hurt US progression in tackling climate change. The Biden administration aims to totally eliminate the use of fossil fuels by 2035. It’s a plan that could drive solar to deliver up to 40% of the nation’s electricity demand. According to the American Clean Power Association industry group, Asian-made solar panels constitute about 80% of the panels expected for US installation this year.

The Commerce Department said they will launch an “unambiguous and clear investigation.” Auxin claimed that the four Asian countries are divisions of giant Chinese producers. The said solar panels made there would be hingeing on the US nullifying and disposal responsibilities if made in China.

“We are grateful Commerce officials recognised the need to investigate this pervasive backdoor dumping and how it continues to injure American solar producers,” said Auxin Chief Executive Mamun Rashid.

A few solar manufacturing associates have alleged that strict trade enforcement and tax incentives will help support clean-energy equipment in the US.

Investigation Could Tumble US Solar Sector

The US solar sector relies steadily on Asian panels. Firms that construct solar farms cautioned that directly conducting an investigation will increase prices. Likewise, it could possibly initiate importers to revisional duties.

“The Department of Commerce’s decision today signals that the Biden administration’s talk of supporting solar energy is empty rhetoric. If its commitment to a clean energy future is real, the administration will reverse this decision immediately,” said Heather Zichal in an emailed statement. She’s the chief executive officer of the American Clean Power Association.

The decision is a possible advantage for a few companies in the US that manufacture solar equipment. However, it becomes a drawback for American developers that bank on low-cost solar panels from Asia.

US solar trade organisations pressed thoroughly against the Commerce Department pursuing the petition. They said projects will now be compelled to conclude whether they can proceed given the possibility of new tariffs. If this happens, costs will surely increase. Solar panels constitute nearly half the expense of a large-scale system.

The tariffs at issue backdate to 2012 when the US levied taxes on solar cells and modules from China. It was then under former President Barack Obama after specifying Beijing-backed companies were trading at cut-rate prices.

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