Biden Administration Announces 50% Hike in Tariffs on Solar Cells from China 

President Biden recently announced new tariffs on goods imported from China. The levies include a major tariff increase on solar cells, the vast majority of which are manufactured in China.

As previously reported by SPURR, 2023 saw multiple factors constraining American solar energy initiatives. This included the Uyghur Forced Labor Prevention Act that sought, justifiably, to eliminate the use of solar modules and components imported from Xinjiang Uyghur Autonomous Region of China. According to  Environment Energy Leader, “China controls up to 90% of some parts of the solar supply chain, leveraging unfair practices to flood markets with low-cost solar products, thereby deterring foreign investment in solar manufacturing.”

2023’s Inflation Reduction Act offered some relief for solar projects, “modif[ying] and extend[ing] the clean energy Investment Tax Credit to provide up to a 30% credit for qualifying investments in wind, solar, energy storage, and other renewable energy projects that meet prevailing wage standards and employ a sufficient proportion of qualified apprentices from registered apprenticeship programs,” per U.S. Department of the Treasury. However, for many, new tariffs and nagging issues may come together to bottleneck or even halt altogether new solar projects. 

The Hill reports that “[when a]sked if the tariffs, particularly on solar panels, would hamper deployment of renewable energy in the U.S., former State Department official Rick Switzer said it would likely cause a ‘12-month lag in some areas of deployment.’”

SPURR will continue to monitor the effects of this increase in solar tariffs and bring the news to our customers. We are dedicated to staying ahead in the solar marketplace and sharing insights with our audience. Stay tuned for updates as the situation continues to unfold. 

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