Biden to Close Solar Trade Loophole, First Solar Soars

• First Solar Inc. stock surges as Biden administration considers eliminating tariff exemption for two-sided solar panels, boosting US-based manufacturers.

First Solar Inc., the largest US solar manufacturer, saw a surge in its stock price after a Reuters report indicated that the Biden administration is planning to eliminate a tariff exemption for two-sided solar panels. The removal of this exemption has been a long-standing request from US-based solar manufacturers, as it allowed module buyers to avoid tariffs imposed by former President Donald Trump.

There is no specific timeline provided for when this exemption will be removed, but the news caused First Solar's stock to jump as much as 6.1% in intraday trading on Wednesday. The Commerce Department has not yet commented on the potential policy change, which is part of a broader effort to promote domestic manufacturing in the solar industry. The majority of solar panels imported into the US are two-sided models, even though they are often used in situations where their unique attributes provide no benefit.

How will the removal of tariff exemption impact US solar manufacturers?

• The removal of the tariff exemption for two-sided solar panels is expected to benefit US solar manufacturers, including First Solar Inc., by leveling the playing field and reducing competition from imported panels.
• US-based solar manufacturers have long argued that the tariff exemption for two-sided panels put them at a disadvantage, as it allowed module buyers to avoid tariffs imposed by the previous administration.
• The potential policy change to eliminate the exemption is part of a broader effort by the Biden administration to promote domestic manufacturing in the solar industry and create more jobs in the renewable energy sector.
• While there is no specific timeline provided for when the exemption will be removed, the news of the potential policy change has already had a positive impact on First Solar's stock price, with a significant increase in intraday trading.
• The majority of solar panels imported into the US are two-sided models, even though they are often used in situations where their unique attributes provide no benefit. The removal of the exemption could encourage the use of domestically manufactured panels and support the growth of the US solar industry.