Possible Removal of Trade Exemption for Bifacial Solar Modules in the U.S.
The Biden Administration is expected to remove a trade exemption for bifacial solar modules imported to the United States, which would lead to an increase in solar panel prices, according to a report from Reuters. Once considered a niche technology, bifacial solar modules, which generate electricity from light on both sides of the panel, now represent about 98% of imports to the U.S., according to a petition signed by several solar manufacturers operating in the U.S.
In November 2021, the U.S. Court of International Trade reinstated the exemption of bifacial solar modules from Section 201 tariffs. The Solar Energy Industries Association (SEIA) considered this a win for the industry as it kept costs for imported modules low. Initially granted in June 2019, the exemption for bifacial modules was revoked by the Trump Administration in October 2020.
Now, the bifacial exemption may be revoked once again, this time by the Biden Administration following a petition by Hanwha QCells, which has a large manufacturing presence in the United States. Reuters reported that Hanwha’s solar division sent a formal petition to the U.S. Trade Representative on February 23, requesting the exemption be revoked.
Last year, Hanwha QCells announced an investment of more than $2.5 billion to expand its U.S. operations. This investment, considered the largest in U.S. solar history, would make QCells the first company to establish a fully integrated silicon-based solar supply chain in the U.S. In October 2023, the expansion of QCells' solar module factory in Dalton, Georgia, was completed, adding 2 GW of solar capacity and bringing the factory’s total output to more than 5.1 GW.
According to an industry note from Roth Capital Partners, the bifacial exemption is likely to be revoked in May and go into effect in June.
AD/CVD laws assess tariffs on goods found to be dodging import duties by dumping products in other countries before shipping them to the U.S. In the previous AD/CVD proceeding, four Southeast Asian countries—Vietnam, Cambodia, Thailand, and Malaysia—responsible for roughly 80% of the U.S. supply of solar components, were alleged to be harboring dumped products from China. Roth indicated that modules shipped from India might be included in the new AD/CVD round.
In a webinar held by Roth, Clean Energy Associates stated that U.S. utility-scale module pricing could increase to about $0.40 to $0.50 per watt as a result of AD/CVD enforcement. This is significantly higher than prices seen in late 2023, where module pricing dropped to a record low of $0.13 per watt. Without a new AD/CVD case, U.S. prices for modules shipped from Southeast Asia may be about $0.20 per watt, according to CEA.
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