Solar rate quota was raised by President Biden to support American solar manufacturers and reduce reliance on Chinese imports. This move aims to sustain the growth of the $60 billion solar energy industry in the U.S. and create more domestic jobs in the sector. The tariff rate quota increase from 5 GW to 12.5 GW will help local manufacturers scale up production and develop their supply chains. The decision was welcomed by industry associations like SEIA, who see it as a step towards building a strong and stable module manufacturing sector in the country. If developers domestically sourced 55 percent of manufactured solar goods, the solar industry would support 900,000 jobs by 2035.
A Cornell University study revealed that onshoring the solar supply chain could reduce 30 percent of global solar manufacturing emissions generated by shipping materials to manufacturing plants and then exporting finished products overseas.
Energy costs make up about 40 percent of the cost of solar panels, according to various studies.
The Department of Commerce issued a final determination in August 2023 that Chinese-based manufacturers were circumventing tariffs on solar cells and panels by shipping their products through Cambodia, Malaysia, Thailand, and Vietnam.
In January 2024, a group of senators urged Biden to increase tariffs on solar panels and components from subsidized Chinese manufacturers, citing a significant price difference in manufacturing costs between China and the United States.
American Alliance for Solar Manufacturing Trade Committee member companies filed petitions to investigate potentially illegal trade practices by primarily Chinese-headquartered companies in Cambodia, Malaysia, Thailand, and Vietnam.
In response to protecting U.S. solar manufacturers, Biden imposed new regulations and considered a tariff rate quota bump.
Despite efforts by the United States and the European Union, Chinese-owned companies are expected to dominate over 80 percent of global solar panel production through 2026.
The U.S. solar market is attracting global investors, including those from China, with several foreign companies building or planning to build solar manufacturing plants in the United States.
Critics warn that the Biden administration’s protectionist policies promoting domestic solar manufacturing may lead to increased solar panel prices, potentially suppressing demand.
The bankruptcy of SunPower, a prominent U.S. solar energy company, highlighted concerns about the impact of tariffs on solar panel prices and demand.
Tariffs on imported solar cells, modules, and other components are expected to remain a part of the U.S. solar industry, regardless of the outcome of the 2024 presidential election. Please rewrite the sentence.
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