Written by Nicola Groom and Jarrett Renshaw
(Reuters) – The Biden administration asks South Korea's Hanwha Q CELLS to rescind two years of trade exemptions that have allowed imports of key solar panel technology from China and other countries to avoid tariffs. Sources close to the two people said that they are expected to approve the deal. According to a White House plan announced Wednesday.
The previously unreported request comes as Qcells seeks to protect its promised $2.5 billion expansion of its U.S. solar power business from competition from cheaper Asian products.
The solar power unit of South Korean conglomerate Hanwha Corp. outlined the request in a formal petition to the U.S. Trade Representative's office on February 23. It also included letters of support from seven other companies that have collectively invested billions of dollars in U.S. solar power plants.
The timeline for the expected reversal has not yet been determined, sources said.
Import duties on bifacial solar panels, a key technology for utility-scale solar power projects, have been in the works since US President Joe Biden signed the Inflation Control Act, a landmark climate change law, in 2022. This will be a boon for the more than 40 solar power equipment factories in the country.
These factories are critical to Mr. Biden's plan to combat climate change, revitalize American manufacturing and create millions of union jobs.
Past trade remedies have sharply fractured the U.S. solar industry, which is dominated by installers and developers who rely on cheaper imports to keep project costs low.
The Solar Energy Industry Association, the largest solar industry group in the United States, lobbied for an exemption for bifacial receivers. SEIA could not be reached for comment.
Biden administration officials, including Treasury Secretary Janet Yellen and U.S. Trade Representative Katherine Tai, have said in recent weeks that the U.S. will pursue trade remedies to address the threat posed by China's massive investment in factory capacity for clean energy products. He said he is considering it.
Qcells has two factories in Georgia and is the largest manufacturer of silicon-based solar products in the United States.
In a copy of the petition seen by Reuters, the company asked Biden to exempt so-called double-sided panels from tariffs first imposed by former Republican President Donald Trump in 2018 and extended by Democrat Biden into 2022. I asked for it to be cancelled.
Tariffs on imported modules started at 30% and are currently 14.25%. These are scheduled to expire in 2026.
“High-quality stadium”
Most of the panel imports come from Southeast Asia, but they are manufactured by Chinese companies there.
To avoid tariffs on products made in China, the United States imposed tariffs on some panel manufacturers when they finish their products in Cambodia, Malaysia, Thailand, and Vietnam. Biden waived those tariffs nearly two years ago, but the White House announced he would allow the policy to expire in June.
“We continue to consider all options to ensure the success of the historic investments facilitated by the Inflation Control Act,” White House officials said in a statement. “Our companies and workers can compete with anyone, but we need a level playing field.”
Double-sided panels can generate electricity on both sides. The technology was in its infancy when the tariffs were first imposed, but now accounts for 98% of imported modules, according to the petition.
Qcells said in the petition that action is needed to preserve many of the plans for new U.S. solar manufacturing capacity laid out by the incentives included in the IRA.
“Despite these positive trends, there is growing evidence that negative market conditions caused by the surge in bifacial module imports are causing some companies to reconsider their investment plans in the United States.” the petition states.
According to the petition, Qcells' request is supported by seven other solar manufacturers with factories in the U.S.: First Solar, Helien, Suniva, Silfab, Crossroads Solar, Mission Solar and Ausin Solar. ing.
Georgia Sens. Jon Ossoff and Raphael Warnock, both Democrats, have also advocated for repealing the two-sided exemption.
(Reporting by Nicola Groom and Jarrett Renshaw; Editing by Timothy Gardner and Bill Berkrot)
