Hope Shines On For US Solar Developers

• US President says it will veto any attempt to repeal the tariff waiver he has accorded to solar imports from Southeast Asian nations
• He has also promised not to extend the waive off beyond the 24-month period which ends in June 2024
• The H.J. Res. 39 resolution is likely to come up for House vote within this week

US President Joe Biden has decided to use his ultimate weapon of veto to thwart Congress' attempts to overturn the temporary pause for the imposition of anti-circumvention tariffs on imported solar cells and modules which the Solar Energy Industries Association (SEIA) says will force companies to pay $1 billion in retroactive duties and bring the booming industry to a halt.

A committee of the US House of Representatives, comprising both Democrats and Republicans, are demanding a repeal of the 2-year waiver from anti-circumvention duties to be imposed on solar imports from shipped from Vietnam, Cambodia, Thailand and Malaysia through H.J. Res. 39 resolution.

Since the waiver is in place for 24 months till June 2024, the US Department of Commerce (DOC) cannot collect any duties from companies found guilty of circumventing tariffs (see US Finds Chinese Companies Dodging Circumvention Tariffs).

Since Joe Biden took office, the White House says announcements for 'more than 90 GW' of private-sector investments in the US solar manufacturing have been made, with half of it coming in 7 months since the passage of the Inflation Reduction Act (IRA).

Till these commitments come online, the US depends on foreign imports to keep building its solar capacity to meet the target of a decarbonized grid by 2035.

A statement issued by the White House termed this pause a 'short-term bridge to ensure there is a thriving US solar installation industry that's ready to purchase products made within the US. Along with the decision to veto the resolution, the White House said the President does not intend to extend the tariff suspension at the end of 24 months in June 2024.

According to the White House Office of Management and Budget, "Passage of this joint resolution would undermine these efforts and create deep uncertainty for jobs and investments in the solar supply chain and the solar installation market."

The resolution is expected to come up for a full vote in the House within this week, according to a Reuters report.

Meanwhile the US solar industry is also stepping up pressure to not repeal the pause as it may cancel as much as 4 GW of planned solar projects, representing 14% of the US solar industry's anticipated deployment in 2023 (see US PV Industry Protesting Against Potential Retroactive Tariffs).