President Joe Biden has more than doubled the Section 201 tariff rate quota for imported solar cells, from 5 GW to 12.5 GW per year.
As he imposed new regulations May 16 to protect U.S. solar manufacturers from unfair trade practices, Biden said he might raise the quota if necessary to maintain a supply of cells for U.S. solar module manufacturers as they scale up production through the supply chain.
His administration apparently did conclude this move was necessary: The higher quota was announced Aug. 12, to the praise of an industry group.
The decision affects imports of certain crystalline silicon photovoltaic cells, whether or not they are partly or fully assembled into other products.
The proclamation issued Aug. 12 indicates that a majority of representatives of the U.S. solar industry had requested the change. It reads:
“I have determined that the domestic industry has been making and is continuing to make a positive adjustment to import competition, shown by increased actual and planned module production; various announcements of planned domestic cell production; and improvements in several of the domestic industry’s financial, trade and employment indicators.”
The Solar Energy Industries Association welcomed the move. In a statement, CEO Abigail Ross Hopper said, “SEIA strongly commends President Biden’s decisive action to support American solar module manufacturers by raising the Section 201 tariff rate quota on cells. 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.
“Federal clean energy policies are fueling a surge in domestic manufacturing investments across the country, which are helping us secure our supply chain and uplift American communities. The president’s recent actions are critical for maximizing the impact of these policies and ensuring the long-term success of American solar manufacturing.”
The May 16 policy announcements were intended to boost the U.S. solar manufacturing sector, which Biden has invested heavily in building up. (See Biden Doubles Down on Support for US Solar Manufacturing.)
Extensive manufacturing investments have been announced in the United States during his administration, but extensive plans to build solar generation also have been announced, with domestic demand outstripping domestic supply.
Representatives of the U.S. industry in September 2023 said the demand for imports would continue in the near term and petitioned for the tariff rate quota to be raised to 20 GW per year or eliminated altogether.
Eleven months later, they got 12.5 GW.
The new tariff rate quota pertains to products that entered the U.S. after July 31.
