Solar Panels In U.S. Commerce Department’s Crosshairs Again

For a government that says it’s eager to hugely expand solar capacity and really tackle climate change, the Biden Administration is doing some pretty weird stuff.

After a request from a US solar panel manufacturer, the country’s Department of Commerce is launching an inquiry into whether solar cells and panels produced or assembled in Cambodia, Malaysia, Thailand and Vietnam using components from China are circumventing the country’s punitive solar tariffs.

Furthermore, the Department may consider whacking on additional costs after the Biden Administration extended Section 201 tariffs on many solar cells and panels produced in China for another four years. The Section 201 tariffs were originally introduced by former President Trump with devastating effects.

It was only 4 months ago when the Department rejected a similar petition – but even a whiff of more or increased punitive measures were enough to send shockwaves through the industry and increase solar prices.

“Contrary to the Biden Administration’s goal of growing clean energy in the U.S., the Department of Commerce has decided to consider up to 50%-250% tariffs on the solar industry in the United States,” said president and CEO of the Solar Energy Industries Association (SEIA) Abigail Ross Hopper. “This misstep will have a devastating impact on the U.S. solar market at a time when solar prices are climbing, and project delays and cancellations are adding up.”

According to Ms. Ross Hopper, additional tariffs will result in the loss of 70,000 American jobs and solar deployment will plummet by 16 gigawatts annually – around two-thirds of all the solar capacity installed in the USA last year.

The American Clean Power Association was similarly appalled by the decision.

“The Department of Commerce’s decision today signals that the Biden Administration’s talk of supporting solar energy is empty rhetoric,” said ACP CEO Heather Zichal. “If its commitment to a clean energy future is real, the Administration will reverse this decision immediately.”

Solar Prices – Australia Vs. USA

Australia is certainly the lucky country when it comes to home solar power, with costs here far less than in the USA – even taking into account recent price hikes resulting from supply chain issues.

For example, the general price range for a good quality 6.6kW solar system in Australia is currently  $5,500 – $9,000 after subsidies; with the upper end of the range a system using the best quality components installed by a particularly fastidious professional.

In the USA, the average price of a slightly smaller 6kW system after tax credits is USD $12,579 – a tad higher than it was when we checked in September last year. In Australian dollars, that works out to around $16,750 at current exchange rates.

There was an attempt in Australia some years ago to whack extra tariffs on Chinese solar panels that thankfully that didn’t come to pass. If it had, Australia would not be the solar energy powerhouse it is today and far fewer Australian households would be slashing their electricity costs with the bill-busting technology and achieving the rapid payback on PV currently enjoyed.

Original Source: https://www.solarquotes.com.au/blog/us-solar-panel-inquiry-mb2416/