New tariffs to significantly hike US module costs, says ACORE

The US solar market faces substantial cost increases from potential new tariffs resulting from the antidumping and countervailing duty (AD/CVD) investigations into solar cell and module imports from Cambodia, Malaysia, Thailand and Vietnam, according to a recent analysis.

A study commissioned by the American Council on Renewable Energy (ACORE) estimates that US-made module costs could increase by USD 0.10 (EUR 0.09) per watt and imported module costs by USD 0.15 per watt, to USD 0.32 and USD 0.40, respectively. The analysis is conducted by Clean Energy Associates.

ACORE warned that the increased prices, coming on top of other challenges, including domestic factors and existing trade restrictions, could hamper the US’ solar progress. Additional tariffs on solar cells would also impede the production efforts of American module manufacturers.

Achieving the government’s target of a 50%-52% reduction in greenhouse gas emissions by 2030 would require boosting US installed solar capacity from 177 GW to over 500 GW, the organisation said.

“Today, solar is one of the most affordable and reliable energy sources we have to power our economy,” commented ACORE president and CEO Ray Long. “Injecting uncertainty into the market slows economic growth and the good-paying jobs clean energy creates, undermines US climate objectives, and will inevitably raise energy costs for American families,” Long added.

(USD 1 = EUR 0.918)

Choose your newsletter by Renewables Now. Join for free!