Senators call on Biden to swiftly conclude investigation into imported solar panels, cells

Published on May 03, 2022 by Kim Riley

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A bipartisan contingent of 22 United States senators urged President Joe Biden to quickly conclude the administration’s investigation into solar panels and cells imported from Malaysia, Vietnam, Thailand, and Cambodia, which account for more than 80 percent of crystalline silicon photovoltaic (CSPV) solar products imported to America. They also requested a meeting with the president to discuss the issue.

Their request follows a recent decision by the U.S. Department of Commerce to investigate a solar circumvention petition request filed by Auxin Solar. The Commerce Department on April 1 initiated its inquiry that will subject the CSPV solar panels and cells imported from the four countries to tariffs ranging from 50 percent to 250 percent, according to a May 1 letter the lawmakers sent to President Biden.

“Initiation of this investigation is already causing massive disruption in the solar industry, and it will severely harm American solar businesses and workers and increase costs for American families as long as it continues,” the senators wrote. “We strongly urge your administration to swiftly review the case and make an expedited preliminary determination. Such a determination should carefully consider the significant policy ramifications and reject the petitioner’s request for retroactivity.” 

The senators also pointed out that the expanded tariffs on products from these countries will severely undercut the growth of the solar industry, cost tens of thousands of American jobs, and raise energy prices for U.S. consumers.

“We strongly support developing a domestic solar manufacturing supply chain, but current demand for solar products far exceeds existing domestic production capacity,” according to the letter, which was signed by U.S. Sens. Jacky Rosen (D-NV), Martin Heinrich (D-NM), Kyrsten Sinema (D-AZ), Thom Tillis (R-NC), Tom Carper (D-DE), Jerry Moran (R-KS), Catherine Cortez Masto (D-NV), Brian Schatz (D-HI), Sheldon Whitehouse (D-RI), Tim Kaine (D-VA), Michael Bennet (D-CO), Dianne Feinstein (D-CA), Mark Warner (D-VA), Chris Coons (D-DE), Alex Padilla (D-CA), Angus King (I-ME), Mazie Hirono (D-HI), John Hickenlooper (D-CO), Christopher Murphy (D-CT), Chris Van Hollen (D-MD), Mark Kelly (D-AZ), and Maggie Hassan (D-NH). 

Already, according to the lawmakers, industry surveys indicate that 83 percent of U.S. solar companies report being notified of canceled or delayed panel supply since the Commerce Department decided to initiate this investigation.

“Without a reliable and cost-effective source of panels, existing and proposed solar projects could come to a halt,” they wrote. “Left unaddressed, cutting off this supply of panels and cells also could cause the loss of more than 100,000 American jobs, including approximately 18,000 manufacturing jobs.”

The senators also wrote that if these tariffs are imposed, ratepayers who depend on clean, affordable energy could be adversely impacted. For instance, a utility might have to move to the next least costly supply of electricity if a contracted solar project could not be built or built on time because of the Commerce Department investigation, they wrote.

Additionally, some utilities could decide to take on any added costs resulting from the tariffs and then pass them onto ratepayers, translating into “massive price hikes for U.S. utility customers,” who already are facing rising prices and high costs of living, according to their letter.

Frank Prager, Xcel Energy’s Chief Sustainability Officer and senior vice president of Strategy, Security and External Affairs, said the power giant appreciates the senators’ leadership to ensure that solar energy expansion in America is not hampered by a lengthy administrative review process.

“A timely conclusion to this trade case will provide needed market certainty as we continue our clean energy transformation for the benefit of our customers and reduce carbon emissions 80 percent by 2030,” said Prager.