Dumping allegations: US solar panel manufacturers want tariffs on India, Indonesia & Laos imports; aim to protect billions of dollars of investment

A coalition of main US solar panel manufacturers has filed a proper petition urging the US commerce division to impose tariffs on solar imports from India, Indonesia, and Laos.The group alleges that producers in these nations are flooding the American market with artificially low-priced solar panels, harming the home solar manufacturing trade.According to a Reuters report, the petition, submitted on Thursday by the Alliance for American Solar Manufacturing and Trade, contains main trade gamers resembling First Solar, Qcells (Hanwha’s solar division), Talon PV, and Mission Solar. The alliance claims firms within the three nations are promoting solar merchandise beneath manufacturing prices and are benefiting from unfair authorities subsidies.According to the petitioners, Chinese-owned manufacturers have shifted operations to Indonesia and Laos to circumvent present US tariffs on imports from different Southeast Asian nations. Indian manufacturers are additionally accused of dumping low-cost panels into the US market.The group highlighted a dramatic rise in solar imports from India, Indonesia, and Laos — leaping from $289 million in 2022 to $1.6 billion in 2023. The surge has raised considerations amongst US solar producers concerning the impression on current investments aimed toward boosting home solar manufacturing.“We have always said, vigorous enforcement of our trade laws is critical to the success of this industry,” said Tim Brightbill, lead attorney for the petitioners.

US solar manufacturing and inflation reduction act

While the majority of solar panels installed in the US are still imported, American manufacturing capacity has expanded significantly since the passage of the Inflation Reduction Act (IRA) in 2022. The law provides tax credits to boost domestic clean energy production and reduce dependence on Chinese-made solar panels.The US now has around 50 gigawatts of solar panel production capacity, up from 7 GW in 2020. However, demand continues to outpace supply, with installations expected to reach nearly 43 GW annually through 2030, according to the Solar Energy Industries Association (SEIA).

Next steps: Commerce department review

The US department of commerce has 20 days to decide whether to launch an investigation into the alleged dumping and subsidy practices. If it proceeds, the case could lead to new tariffs within a year, depending on the outcome of the investigation.