Biden's Veto Saves US Solar Industry From Tariff Setback in Southeast Asia

President Joe Biden has recently made a significant move to support the US solar industry by vetoing legislation that aimed to reintroduce tariffs on solar panels from Southeast Asia, CNET reports.

The move is designed to safeguard the solar supply chain as domestic solar panel production and installations continue to ramp up in the US.

A Thriving US Solar Energy Industry

According to data from the Center for Strategic and International Studies (CSIS), the US produces just 5% of the world's polysilicon supply, nearly 0% of wafers, 1% of solar cells, and a mere 6% of solar modules. These numbers may seem discouraging, but they have kept solar energy from flourishing nationwide.

As of late 2022, the US had a nationwide solar capacity exceeding 135,700 megawatts (MW), enough to power approximately 24 million homes, as the Solar Energy Industries Association (SEIA) reported.

This remarkable achievement has been made possible by combining favorable policies and incentives, declining solar technology costs, and the growing demand for cleaner energy.

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While the US may not be a major player in the production of key solar components, the nation's solar energy industry is still making significant strides.

Regulation Efforts

Reuters reported that the White House had previously granted 24-month waivers in June 2022, exempting duties on solar panels made in countries including Malaysia, Cambodia, Vietnam, and Thailand. These countries account for around 80% of solar panels used in the US.

This came after the Trump administration imposed tariffs in 2018, causing a supply chain shortage that led to the delay or cancellation of hundreds of solar projects, according to the Solar Energy Industries Association (SEIA).

Additionally, a resolution passed by Congress this month has aimed to reintroduce the duties, arguing that they were necessary to maintain America's solar industry's competitiveness.

However, the White House has insisted that the exemptions will help domestic manufacturers catch up, with President Biden stating that they will ensure that the US has a thriving solar installation industry ready to deploy American-made solar products when new factories become operational.

US Net-Zero Carbon Emissions Goal

The solar industry is crucial to the Biden administration's ambitious goal of achieving net-zero carbon emissions by 2030. The veto is only the third of President Biden's presidency, emphasizing the importance of the solar industry in the administration's climate policy.

Last year, the Commerce Department's investigation suggested that at least four Chinese solar panel manufacturers were trying to evade the tariffs illegally by completing production in other countries. However, the SEIA argues that reinstating the tariffs would stall development and lead to the loss of an estimated 30,000 jobs.

In a statement, SEIA CEO Abigail Ross Hopper praised Biden's veto as "a reaffirmation of the administration's commitment to business certainty in the clean energy sector."

She added that the solar industry is crucial to fighting climate change, reducing greenhouse gas emissions, and building a more sustainable future.

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