Import tariffs on thin-film photovoltaic modules

What are solar panel import tariffs?

Solar panel import tariffs are primarily intended to support the development of a new U.S.-based solar module manufacturing supply chain, which is financially backed by the Inflation Reduction Act. This act introduces a series of tax credits designed to bolster domestic manufacturers. For solar modules, the credits are as follows:

How do tariffs affect the US solar industry?

As a result, tariffs can still have a substantial impact on the US solar industry, especially those targeting these four Southeast Asian countries. A combined 80% of US solar PV module imports are from Cambodia, Malaysia, Thailand, and Vietnam, and a little less than 60% of US PV cell imports are from these nations.

What tariffs are imposed on Chinese solar cells & modules?

The U.S. had imposed several trade barriers against Chinese solar cell and module imports. In addition to the original 25% tariff under the Section 301, there are anti-dumping and countervailing duties (AD/CVD) that have been imposed since 2012 as well as the Section 201 tariffs targeting cells and modules from all countries.

How much does a tariff on a photovoltaic system cost?

When a $1 tariff is imposed on manufacturers, the final prices of installed photovoltaic (PV) systems increase by $1.35 (Houde & Wang 2022). Similarly, analysis of the 2018 U.S. tariff on washing machines indicate the cost of tariffs is passed to consumers at a rate above 100% (Flaaen et al. 2020).

Will bifacial solar panels be exempt from tariffs?

In his announcement, the President included an exemption for bifacial solar panels. This decision comes after the ITC recommended in November 2021 to extend the safeguard tariffs for an additional four years. Proclamations

Are Chinese solar panels subject to us ad/CV tariffs?

In the solar industry, the U.S. imposed AD/CV duties on Chinese solar cells and panels in 2012 (U.S. ITA 2012). In 2014, tariffs were expanded to solar panels assembled using Chinese or Taiwanese cells regardless of country of origin (U.S. ITA 2014, 2015).