Biden to unveil executive moves to aid solar build-out

President Biden will shield solar project developers from the costs of potential trade penalties and offer new federal support for domestic panel manufacturing, per multiple sources and published reports.

Driving the news: The White House plans to provide a two-year reprieve from panel import tariffs that may stem from an ongoing Commerce Department probe of whether Chinese companies are dodging U.S. penalties.

• Biden also plans to invoke the Defense Production Act (DPA) to boost the manufacturing of panels and other clean energy equipment in the U.S., the sources said.
• Reuters first reported the upcoming moves and, citing a source familiar with the matter, said the trade effort is designed to “allay companies’ concerns about having to hold billions of dollars in reserves to pay potential tariffs.”

Why it matters: The U.S. solar industry and analysts say the months-long Commerce investigation has slowed the pace of U.S. projects, calling it a hurdle that adds to supply chain woes and other headwinds.

• A recent estimate from the consultancy Rystad Energy said 64% of 2022 U.S. solar additions are “in jeopardy,” mostly because of the threat of new tariffs.
• Commerce Department officials have called predictions of potential tariffs far over 200% overblown, with any levies more likely to be an order of magnitude lower.

What’s next: A source familiar with the upcoming announcement said Biden would “take steps to provide U.S. solar deployers the short-term stability they need to build clean energy projects.”

• The Commerce probe will “continue uninterrupted,” the source said.
• The source also said the president would invoke the DPA to “rapidly expand domestic production of critical clean energy technologies.”

What they’re saying: “We applaud President Biden’s thoughtful approach to addressing the current crisis of the paralyzed solar supply chain,” Abigail Ross Hopper, CEO of the Solar Energy Industries Association, said in a statement.

• “During the two-year tariff suspension window, the U.S. solar industry can return to rapid deployment while the Defense Production Act helps grow American solar manufacturing,” she said.

The intrigue: The Commerce inquiry, initiated by the U.S. manufacturer Auxin Solar, has become a politically delicate problem for the Biden administration.

• The upcoming policy announcement shows how it has reached the top levels of the White House.
• It comes as officials are trying to accelerate renewable power deployment to meet the White House goal of 100% of U.S. electricity coming from zero-carbon sources by 2035.

Catch up fast: Commerce is investigating imports made via products assembled in Cambodia, Malaysia, Thailand and Vietnam.

• The Biden administration has come under pressure from solar developers and many lawmakers to quickly end the probe and avoid major new penalties.
• However, several Democrats recently pushed back, urging the White House not to “abandon” trade enforcement.