US plans to revoke tariff exemption on imported solar panels
The White House announced on Thursday plans to shield domestic solar factories from Chinese competition by revoking a tariff exemption for imported double-sided panels and facilitating subsidies for projects using American-made products.
These initiatives come as President Joe Biden emphasises his economic agenda ahead of the November election against former President Donald Trump, according to Reuters.
As part of his climate change strategy, Biden aims to boost investment in clean energy manufacturing to reduce reliance on Chinese imports.
The administration will eliminate a two-year-old trade exemption allowing duty-free imports of bifacial panels, now the primary technology used in utility-scale solar projects.
Additionally, Biden will end tariff waivers on solar panels made by Chinese companies in Malaysia, Cambodia, Thailand, and Vietnam, citing expanded US manufacturing and competition from Chinese solar factories.
John Podesta, Biden’s senior adviser for international climate policy, noted that while these actions will benefit domestic solar producers, addressing Chinese oversupply remains challenging.
The Treasury Department issued new guidelines for clean energy project developers to qualify for a tax credit, offering a 10 per cent domestic content bonus on top of the 30 per cent credit for renewable energy facilities under the Inflation Reduction Act.
To qualify, projects must have 40 per cent of their manufactured product costs sourced from the US, including solar panels, inverters, or battery packs.
The Treasury will allow developers to use default cost percentages determined by the Department of Energy for qualification, simplifying the process.
The administration is also considering additional measures to aid offshore wind developers and incentivize solar wafer manufacturing.
Qcells, a division of Korea’s Hanwha Corp. investing $2.5 billion in US solar factories, welcomed the White House’s actions as crucial for job creation in America.
