US Raises Tariff-free Solar Cell Import Quota to Help Domestic Module Industry
The tariff-rate quota of imported solar cells will go up to 12.5 GW from 5 GW
August 14, 2024
The U.S. has increased the volume of tariff-free solar cell imports to help domestic solar module manufacturers.
Responding to a petition from the domestic industry last September and the report of the United States International Trade Commission, a White House notification said the tariff-rate quota (TRQ) of imported solar cells would go up to 12.5 GW from 5 GW. The tariff, however, will remain at 14.25%.
Industry representatives wanted the safeguard measure modified by eliminating the TRQ and providing tariff-free treatment of all imports of solar cells or increasing the TRQ from 5 GW to 20 GW annually. The petition explained that expected domestic module production, coupled with the current lack of sufficient domestic cell production, would require domestic module producers to rely on imports in the near term, above the existing 5 GW.
The safeguard tariffs will apply only if the imports exceed the 12.5 GW quota.
The tariffs on solar cells were imposed in 2018 under Section 203 of the Trade Act of 1974.
In 2022, the U.S. extended the Section 201 solar tariffs imposed on the import of crystalline silicon photovoltaic modules until 2026. The decision included exempting bifacial solar panels from the duty extension and increasing the allowable import quota for solar cells from 2.5 GW to 5 GW.
The White House announced in May this year that it would bring back bifacial solar modules under Section 201 tariffs. The previous administration’s exclusion of bifacial modules had led to a surge in imports. The government also said the 5 GW tariff-rate quota for imported solar cells would be increased by 7.5 GW if imports approach the current quota level to ensure domestic producers can access the necessary components.
Solar Energy Industries Association President Abigail Ross Hopper welcomed the TRQ increase announcement. “This move provides an important bridge for module producers to access the supply they need while the United States continues to progress on solar cell manufacturing. This decision will help create a strong, stable module manufacturing sector that can sustain robust cell production in the long run.”