The unintended consequences of tariffs

How tariffs on Southeast Asian cells will impact U.S. manufacturing, projections on solar growth, and new facility in Tulsa

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Solar Dispatch
July 11, 2024

Good morning. In today’s newsletter we’re exploring how new tariffs on Southeast Asian cells could impact domestic manufacturing, predictions on 2024 solar growth, and the selection of Tulsa for a new production facility.

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Today’s newsletter is 729 words for a reading time of 4 minutes. Let’s jump in.

THE ESSENTIALS

Renewed calls for antidumping tariffs could raise solar module prices, hamper growth of domestic manufacturing: Clean Energy Associates

  • The application of new tariffs to solar cell and module imports from Southeast Asia, as requested by a coalition of U.S. solar manufacturers, could raise the price of imported solar panels in the U.S. by 15 cents per watt.

  • Prices for U.S.-made modules could rise 10 cents per watt, according to an analysis released Tuesday by Clean Energy Associates and the American Council on Renewable Energy.

  • Growing domestic capacity for solar module assembly means the U.S. could make many of its own solar panels by 2025, according to Clean Energy Associates.

  • However, cell manufacturing capacity has not kept pace, which means many U.S.-based module factories remain dependent on imported cells from Southeast Asia.

Why this matters: Analysts from Clean Energy Associates say the threat of new tariffs—regardless of the ultimate outcome of the investigation—could endanger financing deals for new solar manufacturing capacity in the U.S. — Emma Penrod

New solar installations continue to grow

  • Wood Mackenzie’s latest global market outlook updates expects new installations of solar and wind capacity to increase from the 500 GW installed in 2023 to an average of 560 GW annually over the next 10 years.

  • Solar will lead the expansion and account for 59% of global renewable capacity that comes online.

  • The report predicts that China will lead the charge with policy support from the central government and Western markets will continue to see “challenges with permitting, grid access, financing, and supply chain availability”.

Why this matters: The Wood Mackenzie report is a good reminder that—despite challenges—global solar production continues to grow at an exponential pace.

Norwegian solar manufacturer selects Tulsa for new plant

  • Norwegian solar manufacturer NorSun selected Tulsa, Oklahoma for its first U.S. solar facility.

  • NorSun will invest $620 million in a new 5 GW silicon ingot and solar wafer manufacturing facility.

  • Production will come online in 2026 and could be expanded to 10 GW as the U.S. prioritizes a domestic clean energy supply chain.

Why this matters: Another signal that government incentives are working as more global PV manufacturers set up shop in the U.S.

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WHAT ELSE IS HAPPENING

➡️ Chinese solar companies report loses. Chinese solar companies, LONGi, Tongwei, and Aiko Solar, reported loses in the first half of the year due to increased competition in the PV manufacturing space and a supply and demand mismatch for panels. Analysts are watching to see if the sector can recover the supply glut. (More)

➡️ West Virginia solar microgrid begins production. Timet, a West Virginia metals producer, began construction on a first-of-its-kind solar and battery microgrid to power the production of titanium. (More)

➡️ Chinese regulations attempt to stop bleeding. China releases draft regulation to stall expansion of domestic PV producers as manufacturers face growing losses. Companies will have to curb projects that expand capacity and instead focus on improving quality and bringing prices down. (More)

➡️ Northern PV plant powers diamond mine. Rio Tinto completes 3.5 MW solar power plant at their Diavik diamond mine in the Northwest Territories, Canada. The facility will provide up to 25% of the electricity during the mine’s closure work. (More)

AROUND THE WORLD

🇪🇸 Spain passes regulations enabling solar PV plants on public reservoirs. Awarded licenses for reservoir projects will be temporary, lasting 25 years, and issued through RFP or public auction. (More)

🇦🇺 The Western Australia government is launching a first-of-its-kind solar-hydrogen microgrid. The fully operational project includes a 704kW solar farm, a 348kW hydrogen electrolyser. (More)

🇯🇵 Enfinity Global secures $162.4 million for 250 MW solar portfolio in Japan. The financing will expand Enfinity Global’s portfolio beyond their existing seven operational utility-scale solar projects. (More)

WHAT WE’RE READING
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