United States: Anti-circumvention investigation into PV modules in four Southeast Asian countries

On March 28, Eastern Time, the U.S. Department of Commerce said it would launch an investigation that may lead to anti-circumvention investigations into solar products imported from Malaysia, Thailand, Vietnam and Cambodia. The specific timetable is:

1) Beginning on March 28, US time, the US Department of Commerce began to conduct an anti-circumvention investigation on solar products imported from Malaysia, Thailand, Vietnam and Cambodia. 2) On August 30, the preliminary results of the investigation were announced, and the amount of imported modules was announced. Preliminary tariff rates3) Final decision on 26 January 2023 (extendable to 1 April 2023)

On March 24, the U.S. Department of Commerce allegedly investigated imports of solar products from Malaysia, Thailand, Vietnam and Cambodia at the request of PV module maker Auxin Solar. The move could have implications for Chinese companies that have deployed PV module production in Southeast Asia and export to the United States through Southeast Asia.

"This investigation is only the first step, and we have not made any decisions on the merits, and no additional tariffs will be imposed this time," a Commerce Department spokesman said.

The Commerce Department said it would issue a preliminary ruling within 150 days.

Earlier in the day, a memo was posted on the Commerce Department's website. In the memo, Auxin provided information that PV companies operating in the four Southeast Asian countries were subsidiaries of large Chinese producers.

U.S. PV projects may face headwinds

Auxin Solar is a solar panel company headquartered in San Jose, California. In February of this year, the company submitted a real-name petition to the U.S. Department of Commerce, asking the U.S. Department of Commerce to investigate PV modules imported from the above-mentioned four Southeast Asian countries, saying that Chinese manufacturers shifted production to these countries to avoid U.S. sanctions on Chinese solar products. tariffs levied.

Auxin's petition partly represents the attitude of U.S. solar panel makers that the influx of cheap Asian solar panels into the U.S. makes it impossible for their products to compete in the market.

In contrast, the U.S. solar industry trade group objected. The investigation alone, they argue, would immediately hamper the development of solar projects and harm the progress the United States has made in tackling climate change.

The U.S. PV module market is heavily dependent on imports. About 80 percent of the solar panels expected to be installed in the U.S. this year will come from these four Southeast Asian countries, according to the Clean Energy Association of America. At present, only 5GW of crystalline silicon module manufacturing capacity in the United States, and about 2.5GW of thin-film module manufacturing capacity. Among the sources of imports, although only less than 5% are from China, more than 80% of the products come from Southeast Asia, where the above-mentioned companies set up factories.

“This decision effectively freezes the growth of the U.S. solar industry,”Heather Zichal, chief executive of the American Clean Energy Association, said on a conference call with reporters. The actions of this investigation are a disaster for our industry."

U.S. solar industry groups are lobbying hard against the Commerce Department's acceptance of the petition. Many solar projects are now at risk of not being able to proceed, given the new tariffs could significantly increase costs, they said on Monday.

Joe Biden had previously set a goal of weaning the U.S. power industry from fossil fuels by 2035, pushing solar to provide up to 40 percent of America’s electricity needs, up from 3 percent today.