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The solar industry has raised the alarm that a Commerce Department investigation into whether China’s US tariffs on components used to manufacture solar panels are funneling parts through other countries could seriously endanger clean energy projects across the country.
According to the American Clean Power Association, 80% of imported solar panels are made in four Southeast Asian countries (Malaysia, Thailand, Cambodia and Vietnam). The Biden administration believes China can avoid trade laws by supplying nearby countries with components that would otherwise be subject to tariffs.
President Biden expanded Trump-era tariffs on solar equipment earlier this year, but allowed two exemptions for panels used in large-scale projects.
The investigation means that at least 318 solar projects were suspended late last month, according to a survey of businesses by the Solar Energy Industries Association. The investigation could take until the end of August, when the Commerce Department is expected to release a preliminary finding.
The investigation could “endanger tens of thousands of well-paid American jobs, raise energy prices for consumers, and also undermine the administration’s clean energy. [and] climate goals,” Nevada Democratic Senator Jacky Rosen told Commerce Secretary Gina Raimondo last month.
Still, Ms. Raimondo stated that they have no intention of following the investigation quickly. He will appear before a congressional panel again on Wednesday and is expected to be grilled on the issue by lawmakers on both sides of the aisle.
The investigation was launched in early April based on allegations of trade infringement by Auxin Solar, a small California solar producer.
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