U.S. Imposes Anti-Subsidy Duties on Solar Cells

(Reuters) – The U.S. Commerce Department announced on Tuesday anti-subsidy countervailing duties on solar cells imported from Vietnam, Cambodia, Malaysia, and Thailand, potentially raising the costs of producing and purchasing solar panels in the U.S.

This announcement is the first of two preliminary decisions expected this year in a trade case initiated by Korea’s Hanwha Qcells, Arizona-based First Solar (NASDAQ:FSLR), and several smaller companies aimed at protecting significant investments in U.S. solar manufacturing.

The American Alliance for Solar Manufacturing Trade Committee alleges that Chinese companies operating in these countries have flooded the U.S. market with panels priced below cost, benefiting from unfair subsidies that undermine American products.

Conversely, others in the solar industry argue that these low-cost imports are essential for clean energy project developers competing against fossil fuels and for domestic solar factories that rely on overseas-made cells to assemble panels in the U.S.

According to a fact sheet on the Commerce Department’s website, the agency has set general subsidy rates of:
– 9.13% for imports from Malaysia
– 8.25% for imports from Cambodia
– 23.06% for imports from Thailand
– 2.85% for imports from Vietnam

Large manufacturers face their own separate duty rates. For example, a duty rate of 0.14% was calculated for China’s Trina Solar’s products made in Thailand. In contrast, a duty of 14.72% was assigned for products produced in Malaysia by Hanwha Qcells.

Representatives from Trina and Hanwha were not immediately available for comments. Tim Brightbill, an attorney for the American Alliance for Solar Manufacturing Trade Committee, indicated that the findings aligned with expectations and that the final ruling could result in higher duties.

“Some of the margins definitely do not yet reflect the full extent of government subsidies that are occurring in the industry,” Brightbill stated during a call with reporters.

A final order is anticipated in April next year.