Biden administration ends solar tariff exemption

The Biden administration will eliminate a key exemption that allowed solar panel imports to avoid tariffs.

The administration announced on Thursday that it would end the exemption from import duties on bifacial solar panels, noting that since the exemption was implemented, nearly all solar panel imports have been bifacial.

The move comes just a day after the administration doubled import duties on solar panels. The move was part of an effort to show support for U.S. manufacturing and fend off Republican criticism over climate change.

But White House adviser Ali Zaidi sought to strike a balance in his remarks announcing the action, arguing that secure supply chains are ultimately good for the planet.

“Supply chain risks are climate risks,” he told reporters Wednesday. “We have seen that concentrated or weak supply chains hinder deployment. is far away.”

This two-sided exemption was introduced in 2019 under the Trump administration, but was later repealed by the Trump administration and reinstated by the Biden administration in 2022.

The Biden administration also announced Thursday that it would follow through on an earlier plan to end a two-year deferral of solar power tariffs on imports from Southeast Asia. From June 6, imports of solar power from Cambodia, Malaysia, Thailand, and Vietnam will be subject to tariffs.

Meanwhile, the administration also aims to make it easier to produce domestic renewable energy and give manufacturers some leeway in achieving tax credits.

Under the law, renewable energy projects can receive “bonus” tax credits if a certain percentage of their components are manufactured in the United States. However, some companies have had difficulty obtaining information about the sources of materials used in their parts.

As a result, the government will not need to obtain information from suppliers and will be able to use “default” numbers from the federal government to determine whether you are eligible for a bonus.