Solar Industry Association Fears 'Disastrous' Commerce Circumvention Investigation
The Commerce Department's recent decision to initiate an anti-circumvention inquiry into solar cells from Cambodia, Malaysia, Thailand and Vietnam could prove "disastrous" for the U.S. domestic solar industry, Solar Energy Industries Association CEO Abby Hopper said on an April 5 webinar sponsored by the group. The investigation threatens a "rapid degeneration of US solar industry," she said. SEIA's general counsel and VP of Market Strategy John Smirnov called the investigation the "biggest threat" he has seen in 15 years.
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The case follows a Feb. 8 allegation by Auxin Solar that solar cells and modules completed in Cambodia, Malaysia, Thailand or Vietnam using parts and components manufactured in China are circumventing AD and CVD orders on solar cells and modules from China and, accordingly, should be included within the scope of the orders (see 2203280059). Hopper said that "industry-killing claims by a single company employing a handful of workers" could potentially result in tens of thousands of job losses and would be a huge setback for America's ability to address climate change. SEIA projects that the 2022 supply of solar panels will be "at least 8 Gigawatts short" because of the investigation and could drop as low as 16 GW, noting that production is currently projected under 20 GW total, well short of the 70 GW annual production needed to fulfill the Biden administration's decarbonization goals.
SEIA hopes for a negative preliminary determination from the Commerce investigation and said that the sooner a preliminary determination is reached by Commerce, the better. Of 200 companies surveyed by SEIA, 75% said that panel shipments were on hold, mostly because suppliers feared retroactive tariffs in the event of a positive determination by Commerce. Among solar end-users, residential solar businesses could be the worst hit, with over 90% of those surveyed saying they faced devastating or severe consequences over the next year.