White House May End Exemption For Bifacial Solar Panels

Hanwha Qcells’ Petition May Move Biden Administration To Bring Imported Bifacial Panels Under Tariffs
Hanwha Qcells is leading a group of US solar manufacturers to demand ending the exemption of tariffs on imported bifacial solar modules. (Illustrative Photo; Photo Credit: abriendomundo/Shutterstock.com)
Published on
  • A Reuters report claims that the US government is considering ending the exemption provided to bifacial solar panels from Section 201 tariffs 
  • It has been requested to take the step by a consortium of manufacturers producing in the US, led by Hanwha Qcells 
  • The White House is reportedly heeding the petition as it wants to create a level playing field for local producers 

The White House may be getting ready to bring imported bifacial solar panels into the ambit of Section 201 after an exemption of over 2 years, following a request filed by South Korea's Hanwha Qcells, supported by 7 other solar manufacturers producing in the US. 

This news report by Reuters claims that Hanwha submitted a formal request to the US Trade Representative on February 23, 2024. The other producers that have lent their support to the call are First Solar, Heliene, Suniva, Silfab Solar, Crossroads Solar, Mission Solar and Auxin Solar. 

Hanwha has committed to investing several billions of dollars in the US solar industry with its vertically integrated 8.4 GW manufacturing capacity (see Hanwha Solutions Planning 8.4 GW US Production Capacity). 

While the Donald Trump administration was a proponent of imposing Section 201 tariffs on bifacial solar panels and did so as well, the Biden administration left out these in February 2022 when it decided to continue the tariffs on CSPV cells and modules for 4 years. The tariffs expire in 2026 (see US Extends Section 201 Tariffs). 

Solar PV manufacturers and the developer community in the US have always been divided on the subject of bifacial exemption. While the manufacturers believe this exemption provides Chinese producers 'unrestricted access' to the US market, flooding it with cheaper priced panels, the developers believe till the US can supply domestically-produced modules in keeping with the demand, they need a consistent solar panel supply to continue the rate of deployment. 

According to Reuters, the petitioners believe, thanks to the exemption, that bifacial panels now account for 98% of imported modules to the US. This is forcing local US manufacturers to rethink their plans to invest in the US. 

The White House is considering the request, according to the report, as it wants to create a level playing field for local manufacturers and ensure success of the Inflation Reduction Act (IRA). 

Meanwhile, the 2-year moratorium on anti-circumvention tariffs from the 4 Southeast Asian nations of Vietnam, Malaysia, Thailand and Cambodia is set to end in June 2024. Earlier this year, in January 2024, Auxin Solar and Concept Clean Energy filed a case challenging the moratorium (see Solar Companies Challenge US Govt Tariff Moratorium). 

An end to the moratorium, combined with a possible end to bifacial exemption, is set to boost the fortunes of local PV manufacturers. 

In the 1st week of April 2024, the Solar Energy Industries Association (SEIA) released a statement on 'potential trade actions' without specifying anything else. SEIA President and CEO Abigail Ross Hopper said, "American solar manufacturers have been rightly sounding the alarm bell about deteriorating market conditions for months now and the need to take corrective actions." 

She added, "While we won't take a formal position on any filings until we work through the details of the petition and its impact on the industry, we need to support American solar manufacturers before it's too late." 

Related Stories

No stories found.
logo
TaiyangNews - All About Solar Power
taiyangnews.info