US Raises Section 201 Tariff Rate Quota For Imported Solar Cells

US President Joe Biden has increased the tariff rate quota (TRQ) for imported solar cells under Section 201 from 5 GW annually to 12.5 GW. This means US manufacturers will be able to import a higher volume of solar cells annually, with effect from August 1, 2024.   

The President’s proclamation raises the annual volume of crystalline silicon PV (CSPV) cells to be imported, providing a respite to module manufacturers. The latter are almost entirely dependent on imported solar cells for their module production since the US does not yet have its own local supply of solar cells.  

Notably, the tariffs were put in place by former President Donald Trump in 2018. Having decreased by 0.25%/year, these now stand at 14.25% for imported solar cells entering the US borders.  

Earlier this year, Biden moved to end Section 201 tariff exemption for imported bifacial solar panels and suggested it may increase the imported cell quota to 7.5 GW (see Bifacial Solar Panels Lose Section 201 Tariff Protection). But now, it has retroactively increased the volume to 12.5 GW.   

Ahead of the Presidential Election on November 5, 2024, the Biden administration has relaxed the import volume while maintaining the current tariffs of 14.25%. The government response follows a petition from the domestic industry that demanded the TRQ to be increased from 5 GW to 20 GW annually to enable access to imports till the US solar cell production replaces the need.   

The Solar Energy Industry Association (SEIA) that has 1,000 member companies and strategic partners, has welcomed the proclamation.  

“This move provides an important bridge for module producers to access the supply they need while the United States continues to progress on solar cell manufacturing,” said SEIA President and CEO Abigail Ross Hopper. “This decision will help create a strong, stable module manufacturing sector that can sustain robust cell production in the long run.”