Solar Trade Probe Poses Threat to United State Projects, Developers Say

• Commerce Department to make a decision by March 25 on investigation
• California company alleges Chinese suppliers skirt tariffs

A potential Commerce Department probe of solar imports from Southeast Asia has the potential to ice up investment in the U.S. industry leaders warned Tuesday.

The agency is set to choose by March 25 whether to formally investigate whether solar products from Malaysia, Thailand, Vietnam and also Cambodia circumvent longstanding solar tariffs. An investigation might expose the imports to retroactive tasks of 50% to 250%, the Solar Energy Industries Association said Tuesday.

The 4 countries supply about 80% of united state solar imports as well as the danger of trade restrictions might drag down shipments. The trade dispute threatens to magnify existing headwinds for the U.S. solar industry, which is already seeing slower growth in the middle of higher expenses, delivery delays as well as supply chain disturbances. That's an obstacle to President Joe Biden's initiatives to swiftly improve sustainable power projects nationwide.

" It's simply not a rational company threat to put product on the water and send it here when you do not understand what it's going to set you back when it gets right here," said Abigail Ross Hopper, SEIA's chief executive officer.

Commerce is replying to a petition from Auxin Solar, a small California-based supplier. The key problem is whether Chinese producers currently based on tariffs are circumventing those obligations by assembling their products in the 4 Southeast Asian nations.

About 13% of utility-scale solar capacity scheduled for conclusion in 2022 has already been delayed by at least a year or outright terminated because of the greater prices, disturbance and plan unpredictability in Washington, SEIA has actually said. Programmers have actually cautioned the Biden administration that the Commerce Department decision would worsen those challenges, and potentially tens of hundreds of American work hang in the balance.

" The entire solar industry is watching what the Commerce Department does," Hopper said. "It's hard to overemphasize what it would certainly mean-- just the initiation of an investigation."