The United States had a break from tariffs on solar panels imported from Southeast Asia for two years. The break ended on Thursday. This means American solar energy project builders have until the end of the year to use up the panels they got without paying tariffs.
This could lead to a lot more solar energy projects being built in the U.S. The country’s solar energy industry was already growing fast. But, some American companies that make solar panels are not happy about this. They want solar energy projects to use panels made in America.
Solar project builders in the U.S. have about 35 gigawatts of imported solar panels in warehouses. They got these panels without paying tariffs when President Joe Biden lifted tariffs on panels from Malaysia, Thailand, Cambodia, and Vietnam in 2022. This was to help American projects fight climate change.
The amount of panels imported without tariffs is nearly as much as all the solar energy the U.S. will make in 2024.
Most of these panels came from the countries with no tariffs. But now, companies have to use them in the next 180 days. If they don’t, they’ll have to pay tariffs.
Companies are already building more solar energy projects. In the first part of this year, big solar projects went up by 135%. Stacy Ettinger from the Solar Energy Industries Association said that the tariff break helped make sure there were enough panels for more clean energy projects.
But some American companies that make solar panels aren’t happy. They say there are too many panels now. This has made prices go down by 50%. Tim Brightbill, a lawyer for these companies, said the tariff break caused this problem.
Before this, there weren’t enough panels. But then, a lot of panels came in from other countries. Most of these panels came from the countries with no tariffs.
The White House said it will make sure companies use these panels in the next 180 days. The Solar Energy Industries Association did not talk about this.
Solar energy is growing fast in the U.S. A report by Wood Mackenzie and the Solar Energy Industries Association said that solar energy made up 75% of all new electricity added to the U.S. grid in the first part of 2024. This is because more solar panels are being installed.
In the first three months of 2024, the U.S. got 11.8 gigawatts of new solar energy. This is a record. Utilities are adding more solar energy to make up for pollution from other energy sources.
Solar energy is also becoming cheaper. This is because more panels are available. President Biden stopped tariffs on panels believed to be made with forced labor in China. So, more solar panels came in from other countries. This made solar energy projects cheaper to build.
The U.S. is expected to install about the same amount of solar energy this year as last year, which was nearly 40 gigawatts.
