This is according to an analysis released yesterday (9th July) on the potential impacts of new tariffs on the solar industry, commissioned by the American Council on Renewable Energy (ACORE).
Clean Energy Associates analysis outlines how the US solar sector is currently in good health with a fast-emerging domestic solar manufacturing supply chain. However, the imposition of new, unpredictable AD/CVD duties on solar cells and panels from Southeast Asia could raise US-made module costs by 10 cents per watt and imported module costs by 15 cents/watt. These higher prices implemented on top of other headwinds, including domestic factors and trade restrictions already in place and impacting the industry’s trajectory, could seriously hinder America’s progress on solar deployment.
To meet the government’s target of a 50-52 percent reduction in greenhouse gas emissions by 2030, the US solar industry must increase from 177 gigawatts (GW) of installed capacity to over 500 GW.
“Today, solar is one of the most affordable and reliable energy sources we have to power our economy” said ACORE President and CEO Ray Long. “Injecting uncertainty into the market slows economic growth and the good-paying jobs clean energy creates, undermines US climate objectives, and will inevitably raise energy costs for American families. This is not an appropriate course of action and could unintentionally cede US leadership in the solar industry to other countries.”
While the US is actively building its solar module manufacturing capabilities, the researchers explain how more time is still needed, particularly to build cell capacity, to meet demand. Imposing additional tariffs on solar cells will likely harm American module manufacturers, who must rely on imported solar cells to meet their current production needs. The analysis conveys how this could undercut the buildout of a strong domestic solar supply chain and jeopardise US factories and the jobs they support.
Data in the new analysis shows how solar prices have already started to spike since the petitions were filed with the US Department of Commerce and US International Trade Commission on April 24.
For additional information:
American Council on Renewable Energy (ACORE)
Analysis: Potential Impacts of 2024 Antidumping and Countervailing Duties on the US Solar Industry
