The US solar industry has received a significant boost as the Commerce Department imposes preliminary duties on solar imports from Southeast Asia, citing unfair government subsidies. This move marks a crucial victory for domestic panel manufacturers who have long complained about cheap imports harming their operations and threatening investments in the US solar supply chain.
The targeted countries, including Thailand, Vietnam, Cambodia, and Malaysia, account for the bulk of US solar cell and module imports. As a result, renewable developers will face higher prices for equipment, with rates applying retroactively for many imports from Thailand and Vietnam, dating back to early July.
The case is part of a broader effort by US manufacturers to level the playing field against overseas rivals, following similar duties imposed on solar imports from China over a decade ago. Chinese manufacturers had responded by setting up operations in other Asian nations not affected by the tariffs.
The American Alliance for Solar Manufacturing Trade Committee, which includes companies like First Solar, Hanwha Qcells USA, and Mission Solar Energy, has been pushing for these duties, arguing that foreign subsidies and below-cost pricing are unfair.
However, the move has drawn opposition from some foreign manufacturers and domestic renewable power developers, who argue that tariffs could give an unfair advantage to larger incumbent US manufacturers while increasing the cost of solar power projects.
The investigation is ongoing, with final rates expected to be announced next spring. Preliminary general rates range from 2.85% for Vietnam to 23.06% for Thailand, with company-specific rates varying widely.
While the preliminary rates are lower than anticipated, analysts expect final rates to be higher, as in past solar trade cases. The Commerce Department has also begun probing new subsidy allegations, which could further impact the industry.
The outcome is likely to have significant implications for the solar industry, with some companies set to benefit from the duties while others may face increased costs. As the US continues to transition to clean energy, this case highlights the complex challenges of balancing domestic manufacturing interests with the need to deploy renewable energy at scale and speed.
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