By Jesus Garcia
May 16, 2024, 05:00 AM EDT
As part of its strategy reduce market dependence on China and stop what are described as unfair practices, President Joe Biden’s government is launching a new program to boost the production of solar panels in the United States.
“Today we present a set of actions that fit into this broader effort to strengthen the resilience, robustness and diversification associated with our clean energy supply chains,” said Ali Zaidi Assistant to the President and National Climate Advisor on call with journalists.
The official highlighted the investments of $17 million dollars by American manufacturers, but the aim is to offer them better conditions that, eventually, would have a benefit for end consumers.
“This enormous multiple expansion of the solar energy manufacturing capacity It occurs at a time when the United States is also stepping on the accelerator in the deployment of solar energy,” said Zaidi. “There is already an increase of more than 67% [en el uso de esa energía] year after year”.
To improve conditions in the production of solar panels, the Biden Administration is removing the exclusion of bifacial modules under Section 201.
“Bifacial solar panels generally used in utility-scale solar projects are not currently subject to safeguard tariffs under Section 201 of the Trade Act of 1974,” justifies a White House document. “Since this exclusion was implemented by the previous Administration, imports of the number of bifacial panels have increased, now accounting for nearly all U.S. solar panel imports and undermining the effectiveness of the Section 201 safeguard.”
Specific, China’s solar panels will no longer have tariff protectioncontinuing with the policy of increasing customs taxes on various products from that country.
Documented losses
The Biden Administration highlighted that in February, the International Trade Commission published its second report on Section 201, documenting imports of solar modules from China.
“The findings of the February midterm review made clear that the bifacial exemption was likely being abused and that the tariff exemption was no longer appropriate,” said John Podesta, senior advisor to the President for Clean Energy Innovation and Implementation. “That is why we will immediately end the bifacial exemption, just to add a few detailed developers who can demonstrate that they have pre-existing contracts for facial panels entering the United States.”
The exemption is not immediate, but will occur in 90 daysenough time to complete the committed contracts.
And what is the bonus for?
The Treasury Department and the Internal Revenue Service (IRS) also published guidance on the internal content bonus of the Inflation Reduction Law (IRA), to boost American manufacturing and iron and steel production, focused on clean energy.
The domestic content bonus applies to facilities and projects built under measurements on specific quantities of U.S. steel and iron.
To receive the bonus, all manufacturing processes for steel and iron components must be carried out in the United States, it was noted.
“These incentives to bring clean energy manufacturing to the United States are driving investments across the country. “Today’s guidance provides important clarity to businesses and simplifies the process,” said Treasury Undersecretary Wally Adeyemo. “This should help companies make more investments in clean energy using American-made equipment, generating new business for manufacturers and creating more good-paying jobs.”
Keep reading:
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• The 3 pillars of Chinese expansion in Latin America and the Caribbean in two years of pandemic
• How Chinese steel is sinking Latin America’s steel industry (and why Chile is one of its latest “victims”)