Commerce finds solar antidumping violations: An industry reacts

The U.S. Department of Commerce has ruled that business units of BYD, Longi Green Energy, Canadian Solar, Trina Solar and New East Solar are in violation of anti-dumping and countervailing duties (AD/CVD) laws.

The five companies were found to be circumventing Chinese solar goods through Vietnam, Malaysia, Thailand, and Cambodia, which are responsible for as much as 80% of the U.S. supply of solar panels. The ruling means that these companies must pay tariffs on the dumped goods to enter the U.S. market.

Past records of solar AD/CVD tariffs have shown that the fee can be as high as 50% to 250% of the cost of shipped goods. However, the tariffs will not apply until June 2024, when President Biden’s two-year pause lifts. 

The looming threat of tariffs led to a freeze in the utility-scale solar industry in 2022, pulling back by deployments by about 16% on a year that was expected to bring booming growth.

The solar industry reacted to this ruling which is expected to have a considerable impact on solar panel supply in the U.S.

Abigail Ross Hopper, president and chief executive officer, Solar Energy Industries Association:

“The U.S. Department of Commerce is out of step with the administration’s clean energy goals, and we fundamentally disagree with their decision. The United States is experiencing a $20 billion solar manufacturing renaissance because of policies in the Inflation Reduction Act that incentivize private investment in this country. However, it will take at least 3-5 years to ramp-up domestic solar manufacturing capacity and the global supply chain will be vital in the short-term. This case will just make it harder for American businesses to keep deploying, financing, and installing solar power.”

Steven Zhu, president, Trina Solar U.S.:

“We have invested hundreds of millions of dollars in cell and module production in Thailand and Vietnam and most recently another large-scale wafer production facility in Vietnam. In our view, characterizing this production as only minor processing is not an accurate assessment of the facts and against common sense. Commerce’s decision that cell production is minor processing increases the risk that all current and future U.S. cell production will face similar attacks. By undermining the significance of cell production and cutting off supplies and disrupting U.S. demand for solar as it is ramping up, Commerce has made it much harder for companies to predict how the U.S. market will function going forward.”

Gregory Wetstone, president and chief executive officer, American Council on Renewable Energy (ACORE):

“Like most sectors of the American economy, the solar industry has a global supply chain and needs continued access to imported components until U.S. manufacturing capabilities are fully ramped up. So over the past week, we’ve gone from toasting the anniversary of the IRA and its positive impacts on America’s energy transition to lamenting the imposition of harmful solar tariffs that will severely constrict solar availability in the U.S. While ACORE will continue working with its members and sector allies to build a domestic solar manufacturing base that supports high-quality jobs, the policy whiplash now being inflicted on the U.S. solar industry is incredibly disruptive and will only delay our nation’s clean energy progress.” 

Congressman Dan Kildee (MI-08):

“American workers can compete with anyone if they are given a level playing field. But right now, Chinese solar companies are benefitting from unfair trade practices, including state subsidies and forced labor practices. The Commerce Department’s own independent report shows that Chinese solar companies are violating existing trade laws and evading U.S. tariffs, hurting Michigan workers. Considering these findings, the administration should immediately reinstate tariffs to hold bad actors accountable.”

George Hershman, chief executive officer, SOLV Energy:

“This decision rests on shaky analysis and its impact jeopardizes the momentum of solar energy in the U.S., especially as the industry continues to recover from pandemic-induced supply chain disruptions. It will cause business uncertainty and potentially delay clean energy projects, costing American jobs and hindering the Biden Administration’s clean energy goals. Our collective focus should be on fostering smart policies that accelerate clean energy deployment nationwide, generating quality American jobs and bringing reliable and affordable power to more communities. Detrimental trade barriers like this one run counter to our efforts to meet deployment goals while the industry capitalizes on the incentives provided in the Inflation Reduction Act to boost domestic manufacturing and grow our national supply chain.”