Potential new tariffs resulting from the antidumping and countervailing duty (AD/CVD) investigations into solar cells and modules imported from Cambodia, Malaysia, Thailand, and Vietnam could increase costs to a level that significantly restricts solar supply and installations in the U.S., according to an analysis commissioned by the American Council on Renewable Energy (ACORE).

WASHINGTON, July 9, 2024 /PRNewswire-PRWeb/ -- Potential new tariffs resulting from the antidumping and countervailing duty (AD/CVD) investigations into solar cells and modules imported from Cambodia, Malaysia, Thailand, and Vietnam could increase costs to a level that significantly restricts solar supply and installations in the U.S., impeding America's ability to create jobs, provide clean, affordable energy, and achieve climate targets, according to an analysis released today on the potential impacts of new tariffs on the solar industry.

"Injecting uncertainty into the market slows economic growth and the good-paying jobs clean energy creates, undermines U.S. climate objectives, and will inevitably raise energy costs for American families," said ACORE President and CEO Ray Long.

Commissioned by the American Council on Renewable Energy (ACORE), the new Clean Energy Associates analysis outlines how the U.S. 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 U.S.-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% reduction in greenhouse gas emissions by 2030, the U.S. 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 U.S. climate objectives, and will inevitably raise energy costs for American families. This is not an appropriate course of action and could unintentionally cede U.S. leadership in the solar industry to other countries."

While the U.S. 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 jeopardize U.S. 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 U.S. Department of Commerce and U.S. International Trade Commission on April 24. Click here to download Potential Impacts of the 2024 Antidumping and Countervailing Duties on the U.S. Solar Industry.

Media Contact

Alex Hobson, ACORE, 202.830.3592, hobson@acore.org, https://acore.org/

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SOURCE ACORE

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