President Joe Biden has issued a proclamation designed to reinforce the USA’s solar industry, by expanding the current tariff-rate quota (TRQ) for imports of crystalline silicon photovoltaic (CSPV) cells.
With the change taking place on August 1st 2024, the TRQ on imports has been increased from 5GW to 12.5GW per annum. This increase is designed to protect the USA’s solar industry by decreasing the competitiveness of international imports.
The tariff increase is on trend with other changes implemented by President Biden’s administration. In May, new tariffs on double-sided solar panel imports were introduced.
Benefits
By increasing the volume of CSPV cell imports and bypassing additional safeguard tariffs, USA solar module manufacturers are expected to benefit from easier access to the cells as they are difficult to create domestically.
Easier access to supply is hoped to decrease international imports by making the prices of domestic products more competitive, while also meeting the USA’s increasing demand for solar panels.
With a stabilised domestic solar market through the TRQ’s expansion, the USA’s PV industry could see a growth surge – which could bring more investment. This could lead to the construction of new manufacturing plants in the country.
“This move provides an important bridge for module producers to access the supply they need while the United States continues to progress on solar cell manufacturing,” says Abigail Ross Hopper, President and CEO of the Solar Energy Industries Association (SEIA).
Concerns
When new tariffs were introduced in May, Solar&StorageXtra reported on comments a senior executive from one of China’s largest solar equipment groups made to the Financial Times.
The executive urged Western governments to “let the best technology win”, explaining that protectionist measures from the USA and Europe could hurt the global solar industry.
Trade barriers were cited as unfairly harming solar manufacturers, however, international companies have alternatively cited excess Chinese output and “dumped” overstock as the volatile market’s source.
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