The 2-year freeze brings certainty to keep solar momentum going
The U.S. government announced Monday that it was suspending an import tariff on solar components from certain Southeast Asian countries for a period of two years, while at the same time taking action to promote more domestic solar manufacturing.
We previously talked about the controversy over “anti-dumping tariffs” on our blog last month. At that time, the Department of Commerce was investigating claims that facilities in Cambodia, Malaysia, Vietnam, and Thailand were being used by Chinese companies to get around tariffs intended to promote construction of solar components by American manufacturers. Although Zenernet customers had little reason to be concerned, the investigation worried many others in the solar industry. They said uncertainty about being able to source components would leave solar projects in limbo, with companies having to hold huge amounts of cash in reserve to pay tariffs they might end up owing depending on the result of the investigation.
The decision by the Biden administration to waive the tariffs for 24 months and an assurance that there will be no retroactive tariffs brings welcome certainty to the solar industry and demonstrates that the U.S. government understands the importance of not slowing the momentum of solar adoption. At the same time, the administration announced that it would move to encourage more American manufacturing of solar and other renewables with loans and grants under the Defense Production Act, a law that gives the President broad authority to ensure the manufacturing of products considered essential for national security.
We’ll be keeping tabs on this story and any other policy developments that could affect solar supply chains. Remember that the Zenernet blog is your source for updates on what all the latest news from the solar industry means for solar-empowered homeowners and homeowners still considering whether solar is right for them. Be sure to follow us on social media to make sure you don’t miss a story.
