The Biden administration is reportedly poised to fulfill a request by South Korea’s Hanwha Qcells to reverse a two-year-old trade exemption, which has permitted the import of a dominant solar panel technology from China and other countries to bypass tariffs. This decision, as reported by sources familiar with the White House plans, has contributed to a surge in the stock prices of solar manufacturers, including U.S.-based First Solar FSLR.O.
Hanwha Qcells’ request, previously undisclosed, aligns with the company’s efforts to safeguard its committed $2.5 billion expansion of its U.S. solar manufacturing presence against competition from more affordable Asian-made products. The formal petition to the U.S. Trade Representative, submitted by the solar division of Korean conglomerate Hanwha Corp 000880.KS on February 23, included letters of support from seven other companies with substantial investments in U.S. solar factories.
The potential reversal of duties on imports of bifacial panels, a primary technology in utility-scale solar projects, is anticipated to benefit the over 40 solar equipment factories established since President Joe Biden signed the Inflation Reduction Act in 2022. These facilities are integral to Biden’s climate change agenda, the revitalization of American manufacturing, and the creation of union jobs.
However, the decision has sparked division within the U.S. solar industry, predominantly led by installers and developers reliant on cost-effective imports to maintain project affordability. The Solar Energy Industries Association (SEIA), a leading solar trade group, had previously advocated for the bifacial exemption, emphasizing the need for increased domestic manufacturing of solar modules.
The potential impact of the trade reversal on the domestic solar panel manufacturing market, particularly amid escalating imports of inexpensive Chinese panels, has raised concerns among policymakers. A bipartisan group of U.S. senators from Georgia urged Biden to consider reinforcing tariffs on Chinese solar panels to avert market saturation coinciding with the introduction of clean-energy tax credits.
Qcells, the largest U.S. producer of silicon-based solar products with two factories in Georgia, is at the forefront of this development, urging the Biden administration to revoke the exemption on bifacial panels from duties initially imposed by former President Donald Trump and extended by President Biden.
The tariffs on imported modules, which commenced at 30% and currently stand at 14.25%, are set to expire in 2026.