Solar companies say the new tariff proposal will destroy the industry

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The Solar Energy Industry Association said Wednesday that imposing tariffs on panels and cells from Malaysia, Vietnam and Thailand, which account for 0% of U.S. panel imports, would have a “catastrophic impact” on the industry.

In a letter to Commerce Secretary Gina Raymondo, more than 1,190 U.S. solar companies have called on the Commerce Department not to launch a trade investigation.

The letter came on Wednesday after several companies filed an anonymous petition with the Commerce Department in August, alleging that China-based solar cell and module manufacturers were evading US tariffs by removing production from the country. The department is expected to decide by the end of the month whether to launch an investigation.

“The huge duties called for in this petition, ranging from 50% to a maximum of 250%, are already adversely affecting the US solar industry and, if implemented, would destroy the industry and each of our companies,” the letter said.

SEIA estimates that should the proposed tariffs be effective, it will cost the industry by 2023 to install 18 gigawatts of solar, equivalent to all U.S. solar installations prior to 2015. The industry is expected to add 30 gigawatts of solar in 2022 and 33 gigawatts of solar in 2023, according to estimates by Energy Consultancy Wood Mackenzie.

“We believe that significant uncertainty could be a real risk for U.S. utility-scale developers, and that projects could be pushed further with increasing disruptions beyond the poly. [polycrystalline] And freight / logistics, “Bank of America Distinguished Analysts.

The petitioners claim that the lion’s share of solar products imported from Malaysia, Vietnam and Thailand are actually assembled in China, which is why these products should be subject to tariffs. SEIA argues that enough work is being done outside of China.

“We cannot stress enough how harmful this tariff will be to our company and to the entire American solar industry,” the letter said.

This comes when the industry faces a variety of disciplines, including disruption of supply chain and high costs of raw materials.

In June, Hussein issued a withhold release order on silica-based products from the silicon industry due to forced labor concerns in China’s Xinjiang region by U.S. customs and border protection.

Solar costs quadrupled during the second quarter and increased in all segments of the market over the years, as Wood Mackenzie began tracking price data in 2014. Infrastructure bill. The industry expects the $ 3.5 trillion spending package to include adequate funding for clean energy projects.

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