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CEA Highlights Implications of US Policy Initiatives on Solar Equipment Imports from China
Clean Energy Associates (CEA), US-based clean energy advisory firm, has published a comprehensive report detailing the potential implications of recent US policy initiatives on imports of solar equipment from China.
May 28, 2024. By News Bureau

Clean Energy Associates (CEA), US-based clean energy advisory firm, has published a comprehensive report detailing the potential implications of recent US policy initiatives on imports of solar equipment from China.
Indicating a limited immediate impact, the report provides valuable insights into future trends and challenges in the solar industry.
On May 15, 2024, the US Department of Commerce launched AD/CVD investigations into solar cell imports from Cambodia, Malaysia, Thailand, and Vietnam. Hanwha Q Cells, First Solar, and Mission Solar were identified as representing the domestic industry. The commerce department declined a request to poll other industry players. The ITC will assess if the domestic industry suffered harm from imports. If the ITC does not find that there is sufficient evidence of injury or threat of injury, it will terminate the investigation.
Although there's no direct market impact yet, the looming investigation has caused price hikes, contract renegotiations, and procurement delays, affecting project timelines, especially those scheduled for construction in 2025.
In its analysis of the latest claim, CEA said, “Based on the record of previous AD/CVD petitions, CEA finds a high likelihood that this petition will result in duties. In a study of all AD/CVD petitions from 2012 through 2021, the Government Accountability Office found that 74 percent of the petitions filed resulted in duties.”
The US Treasury Department has updated guidance for project owners seeking the Domestic Content Bonus under Section 48/48E ITC and Section 45/45Y PTC. The new method offers an optional approach for measuring domestic content in Manufactured Products, providing an exhaustive table of components and labor values. This method replaces the need for direct cost accounting to suppliers. However, project owners must commit to either this new method or the previous guidance, not both.
The table includes components for trackers and inverters, streamlining the bill of materials. This simplification aids project owners facing challenges in obtaining direct cost information from suppliers. While this enhances access to the Domestic Content Bonus, most projects still require domestic cells or First Solar modules, which are in short supply. Consequently, while more projects may qualify for the bonus, the overall number remains restricted, as anticipated by CEA, especially beyond 2026.
On May 16, 2024, President Biden revoked the bifacial product exemption under Section 201 global safeguard tariffs on solar cells and modules. Consequently, most PV modules imported into the US until February 2025 will face a 14.25 percent tariff. An exemption is granted for modules already under contract and imported within the next 90 days.
The Section 201 tariff decreases to 14 percent by February 2025 and terminates in February 2026, requiring a new investigation for renewal. President Biden maintains the tariff-rate quota (TRQ) at 5 GW, with a provision to increase it by 7.5 GW if cell imports approach 5 GW annually.
While the removal of the bifacial exemption is expected to minimally impact module prices, it could disadvantage products from Southeast Asia due to combined tariffs with AD/CVD investigations, as noted by CEA.
On May 14, 2024, President Biden and US Trade Representative Katherine Tai announced adjustments to Section 301 tariffs on Chinese products, impacting various clean energy imports, including EVs, solar PV, and battery energy storage components.
Specifically focusing on solar, President Biden doubled the Section 301 tariffs on Chinese solar cells and modules from 25 percent to 50 percent, while granting exemptions for previously taxed solar manufacturing equipment. Although the impact on solar cells and modules is limited due to existing AD/CVD orders, the removal of tariffs on manufacturing equipment aims to lower capital expenditure costs for US factories, enhancing competitiveness with imports.
CEA's report underscores the evolving landscape of the solar industry in the face of shifting trade policies and regulatory frameworks. While immediate impacts may be limited, the long-term implications for market dynamics, supply chains, and project economics warrant close monitoring by industry stakeholders.
Indicating a limited immediate impact, the report provides valuable insights into future trends and challenges in the solar industry.
On May 15, 2024, the US Department of Commerce launched AD/CVD investigations into solar cell imports from Cambodia, Malaysia, Thailand, and Vietnam. Hanwha Q Cells, First Solar, and Mission Solar were identified as representing the domestic industry. The commerce department declined a request to poll other industry players. The ITC will assess if the domestic industry suffered harm from imports. If the ITC does not find that there is sufficient evidence of injury or threat of injury, it will terminate the investigation.
Although there's no direct market impact yet, the looming investigation has caused price hikes, contract renegotiations, and procurement delays, affecting project timelines, especially those scheduled for construction in 2025.
In its analysis of the latest claim, CEA said, “Based on the record of previous AD/CVD petitions, CEA finds a high likelihood that this petition will result in duties. In a study of all AD/CVD petitions from 2012 through 2021, the Government Accountability Office found that 74 percent of the petitions filed resulted in duties.”
The US Treasury Department has updated guidance for project owners seeking the Domestic Content Bonus under Section 48/48E ITC and Section 45/45Y PTC. The new method offers an optional approach for measuring domestic content in Manufactured Products, providing an exhaustive table of components and labor values. This method replaces the need for direct cost accounting to suppliers. However, project owners must commit to either this new method or the previous guidance, not both.
The table includes components for trackers and inverters, streamlining the bill of materials. This simplification aids project owners facing challenges in obtaining direct cost information from suppliers. While this enhances access to the Domestic Content Bonus, most projects still require domestic cells or First Solar modules, which are in short supply. Consequently, while more projects may qualify for the bonus, the overall number remains restricted, as anticipated by CEA, especially beyond 2026.
On May 16, 2024, President Biden revoked the bifacial product exemption under Section 201 global safeguard tariffs on solar cells and modules. Consequently, most PV modules imported into the US until February 2025 will face a 14.25 percent tariff. An exemption is granted for modules already under contract and imported within the next 90 days.
The Section 201 tariff decreases to 14 percent by February 2025 and terminates in February 2026, requiring a new investigation for renewal. President Biden maintains the tariff-rate quota (TRQ) at 5 GW, with a provision to increase it by 7.5 GW if cell imports approach 5 GW annually.
While the removal of the bifacial exemption is expected to minimally impact module prices, it could disadvantage products from Southeast Asia due to combined tariffs with AD/CVD investigations, as noted by CEA.
On May 14, 2024, President Biden and US Trade Representative Katherine Tai announced adjustments to Section 301 tariffs on Chinese products, impacting various clean energy imports, including EVs, solar PV, and battery energy storage components.
Specifically focusing on solar, President Biden doubled the Section 301 tariffs on Chinese solar cells and modules from 25 percent to 50 percent, while granting exemptions for previously taxed solar manufacturing equipment. Although the impact on solar cells and modules is limited due to existing AD/CVD orders, the removal of tariffs on manufacturing equipment aims to lower capital expenditure costs for US factories, enhancing competitiveness with imports.
CEA's report underscores the evolving landscape of the solar industry in the face of shifting trade policies and regulatory frameworks. While immediate impacts may be limited, the long-term implications for market dynamics, supply chains, and project economics warrant close monitoring by industry stakeholders.
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