Energy
Wednesday, March 6th, 2024 4:02 pm EDT
Key Points
- First Solar CEO Mark Widmar highlights the threat posed by a flood of foreign solar components to efforts aimed at building a domestic manufacturing base in the U.S. to support the clean energy transition. Widmar emphasizes the need to close tariff exemptions allowing cheap components into the U.S. market to ensure fair competition and enforcement against dumping practices.
- Widmar criticizes tariff exemptions and loopholes, such as exclusions for certain types of solar panels and moratoriums on tariffs against solar components from Southeast Asian nations, for undermining the goals of initiatives like the Inflation Reduction Act. He raises concerns about Chinese companies exploiting these exemptions and tax credits to bypass anti-dumping protections and hinder the growth of domestic solar manufacturing.
- Despite market volatility, First Solar remains largely insulated due to solid bookings extending through at least 2026. Widmar underscores the importance of domestic manufacturing in providing certainty amidst geopolitical tensions and uncertain trade policies. He emphasizes the need for more utility-scale solar generation to meet growing electricity demand driven by factors like data centers, electrification of vehicles, and the shift away from fossil fuels.
First Solar CEO Mark Widmar emphasizes the threat posed by a flood of foreign solar components to the establishment of a domestic manufacturing base in the U.S. to facilitate the clean energy transition. He calls for the closure of tariff exemptions allowing cheap components into the U.S. market, stressing the need for fair competition and enforcement against dumping practices. Despite being the largest manufacturer of solar panels in the U.S., focused on large utility-scale projects, Widmar highlights the challenges faced due to exclusions from Section 201 tariffs and moratoriums on tariffs against solar components imported from Southeast Asian nations, which undermine the objectives of initiatives like the Inflation Reduction Act. Concerns are raised regarding the exploitation of loopholes by Chinese companies, jeopardizing efforts to create a domestic industry for long-term energy independence, security, and innovation.
The Biden administration’s extension of Section 201 tariffs, excluding imported bifacial solar panels, coupled with loopholes exploited by Chinese companies shipping solar cells through Southeast Asian nations, further exacerbates the situation. Despite an investigation revealing anti-dumping practices, Biden’s decision to exempt these nations from solar tariffs raises concerns about market distortions and hindrances to domestic companies’ scalability. Widmar expresses apprehensions about Chinese companies exploiting IRA tax credits to establish assembly plants in the U.S. without driving technological innovation forward. Despite concerns, a White House spokesperson is unavailable for comment.
First Solar remains largely insulated from current market dynamics, with solid bookings extending through 2026, providing a buffer against volatility. Unlike the residential solar sector, which faces challenges due to high interest rates, First Solar outperforms with a focus on utility-scale projects. Widmar underscores the growing demand for solar power due to factors like the emergence of artificial intelligence, cryptocurrencies, vehicle electrification, and onshoring of manufacturing in the U.S., necessitating more utility-scale generation. With three factories in Ohio and two more planned in Louisiana and Alabama, First Solar prioritizes domestic manufacturing to ensure supply chain certainty amidst geopolitical tensions and uncertain trade policies, reinforcing its commitment to a U.S.-based supply chain for stability and resilience.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/03/05/first-solar-ceo-says-tariff-exemptions-threaten-us-efforts-to-ramp-up-manufacturing.html
