How Will Lifting Tariff Exemptions on Solar Panels Benefit Renewable Energy Companies?
Solar energy has been touted as a clean renewable resource that can help reduce our dependence on fossil fuels. But now, the future of this technology may be uncertain after the U.S. Department of Commerce launched an investigation back in March into possible trade violations against Asian manufacturers of crystalline silicon photovoltaic cells and modules.
In 2009, the United States was producing about 1% of its electricity from solar power. This number has increased to about 2.5% today. However, this increase has been largely due to the government’s investment in research and development. The Energy Department’s goal is to have 10% of our energy come from solar sources. Despite these goals from the government, according to a study conducted by GTM Research, 80% of the solar panel manufacturers have reported that the investigation has jeopardized the completion of at least half of the solar projects they had planned to complete by 2022.
The lack of panels has caused many solar energy projects to be delayed or canceled. The Biden Administration says they have declared an emergency condition in order to increase the domestic production of panels. This move from the President would ensure that we can meet our demand for panels, support module production domestically, and make sure that we do not lose jobs in the industry.
By evoking the Defense Production Act, the White House claims that the decision to exempt solar from tariffs will allow business to continue investing in the industry. They hope that this investment will lead to job creation and encourage further innovation. Additionally, the President has also stated his intention to cut taxes for businesses and individuals who invest in solar energy. He plans to do this through tax credits and other incentives.
The Defense Production Act was passed into law in 1950 and amended in 1951. This act gives the President the power to mobilize private industry to meet national defense needs. In February 2009, President Obama signed Executive Order 13489, directing federal agencies to use their authorities under the DPA to increase production of infant formula.
As our work continues at Bridgelink, we are dedicated to finding ways to boost our project timelines and create jobs across the country through our renewable energy efforts. Our organization applauds the effort by the Whitehouse to keep the needs of our planet first by ensuring solar thrives across the country. Ultimately, this will allow companies like Bridgelink to resume construction, encourage investments in renewables, and stimulate economic development in urban and rural communities.
For Media Inquires:
David Kash Vasquez