U.S. trade officials have announced that they will open an investigation into solar panels imported from four Southeast Asian nations, in a blow to developers of sustainable energy projects who rely on low-cost imports to save money.
Auxin Solar, a California-based solar company, requested the investigation, claiming that certain Chinese solar panel manufacturers shifted production to Malaysia, Vietnam, Cambodia and Thailand in order to avoid paying U.S. tariffs on Chinese-made solar items.
Auxin’s suit is the latest in a series of moves by American solar makers to halt the flow of low-cost panels that they believe render their goods uncompetitive.
U.S. President Joe Biden has set a goal of weaning the U.S. electrical industry off fossil fuels by 2035, which could boost solar to provide up to 40% of the country’s electricity needs – up from 3% presently.
According to the American Clean Power Association, imports from the four Asian nations account for almost 80% of the panels expected to be installed in the United States this year.
The U.S. Commerce Department said it would conduct an open and transparent investigation. The agency cautioned, however, that this investigation is only the beginning and that no additional duties will be imposed at this time.
A preliminary determination is expected to be issued within 150 days.
U.S. solar trade associations pushed hard against the Commerce Department taking up the case. They argued that contractors will now be compelled to consider whether to proceed with future projects, given the potential for new tariffs that could sharply increase the installation cost of new solar panels. (NNT)
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