A study by Clean Energy Associates revealed that the prices of solar panels in the United States will rise by up to 66% in the near future if the Biden administration approves a newly proposed plan to impose import tariffs on these products.
Earlier this year, America’s domestic solar manufacturers demanded that the government introduce new import restrictions on solar panels in order to safeguard US manufacturing facilities, strengthen the job market, and help US investors.
The US solar market is under severe pressure as manufacturers in Southeast Asian countries like Malaysia, Vietnam, Thailand, and Cambodia are known for their notoriously low-priced manufacturing, which means that the US majorly ends up importing these cheaper panels. Due to this cheap manufacturing, prices of solar panels are getting dramatically low across the world.
While the idea of cheap imports has helped a large number of people to go solar in recent times and impressed green energy activists, it is not sitting well with the local manufacturers, which are forcing the government to introduce new tariffs.
Reports suggest that if President Biden approves the plan, it will increase the prices of American panels by up to 45% while increasing the prices of imported panels by 66%. The United States does not produce solar cells at home. It is completely dependent on imports from Asian countries, which will further impact the US solar market after the possible tariffs.
Green energy activists are ringing alarm bells against the plan, claiming that it will essentially reverse years of accomplishments and will not allow the country to meet its goals of replacing fossil fuels with cheaper and cleaner solar energy.
Many activists are also pointing out that import restrictions mean that fewer people will purchase solar systems, which will also halt scientists from researching innovative ways to increase solar panels’ efficiency.
Previously, the Biden administration had imposed tariffs on Chinese solar panels and Electric Vehicles (EVs) and accused the country of producing too many panels to disrupt the global supply chain. The US government claimed that China is involved in “artificially low-priced exports” of solar panels, which is disturbing markets across the world.
This ban came just one day after the meeting between China’s special envoy to climate change, Liu Zhenmin, and his American counterpart, John Podesta. China called the tariffs “very unreasonable” and a clear display of protectionist policies.
The Biden administration has largely touted its green energy agenda, which has helped it gather political support from the far left and climate activists. However, if this rule is approved, it can also bring the administration under renewed pressure from these groups. Due to a possible political cost associated with the decision, political analysts believe that the Biden administration will at least not approve this policy before the November elections when such voters can become consequential for Democratic Kamala Harris in key battleground states.
