Project owners, lenders, and developers know that uncertainty surrounding costs and supplies can make a project much less appealing. So it’s big news for the solar industry that on June 6, the Biden Administration issued an executive order essentially suspending new tariffs on solar imports for at least 24 months.

The action is in response to an ongoing investigation by the U.S. Department of Commerce (DOC) into a complaint that the Chinese are circumventing anti-dumping import tariffs by moving production to manufacturers in Thailand, Malaysia, Vietnam, and Cambodia. Products from these four countries comprise approximately 80 percent of solar modules for future U.S. installations. While the outcome of the investigation is unknown, the tariffs could be retroactive to November 2021. The Biden order provides U.S. solar developers temporary relief for two years while allowing the DOC to continue its investigation. This action provides some certainty in the short term, which is good news for solar developers, owners, and lenders in the U.S.

E3 will continue to monitor several other outstanding issues and challenges in the #solarenergy industry. These include the tariff on imported solar modules and cells from China, the fate of the Investment Tax Credit (ITC), and the U.S. Customs & Border Protection Withhold Release Order (WRO) against products containing silica from Hoshine Silicon Industry Co., located in China. While we applaud this most recent action to provide short-term relief, it shows the importance of a long-term economic and regulatory plan for the solar market in the U.S.

For information on E3’s solar services, please contact Jim Langel, leader of E3’s solar practice, at jim.langel@e3co.com.