MAINE, USA — President Joe Biden on Monday announced a two-year tariff exemption for solar panel products from several southeast Asian nations, and officials say that could help the development of Maine solar projects.
Biden also announced the use of the Defense Production Act to promote domestic solar production, CNBC reported.
Jeremy Payne is executive director of the Maine Renewable Energy Association. He told NEWS CENTER Maine Biden's actions this week should help the development of Maine solar projects.
The U.S. Commerce Department had launched an investigation into Southeast Asia's solar industry. Payne said that investigation was stalling projects and pausing investments in solar.
"This is very helpful action taken by the president," Payne said.
The president's tariff exemption applies to solar panel products from Cambodia, Malaysia, Thailand, and Vietnam, according to CNBC. And while Payne said he doesn't know where Maine solar panel installers typically get their supplies from, he said it's safe to assume they're procured domestically and internationally.
"Every company is different," he said.
As for engaging the Defense Production Act, it's difficult to say if it'll have a demonstratable benefit on solar projects in Maine, according to Payne.
"Once the DPA has been operational for some time, we should know more," he said.
On Monday, solar stocks soared following the president's announcement.
CNBC reported JPMorgan analyst Mark Strouse said the following in a note to clients:
"We believe the announcement will be a clear positive for our coverage, particularly within the utility-scale solar market, which has faced uncertainty since the U.S. Department of Commerce's AD/CVD investigation was launched in late March."
The tariff suspension comes after an announcement in April that two Maine solar projects would get a boost of $10.5 million from the U.S. Department of Agriculture's Rural Energy for America Program.
Payne said the investment climate for Maine solar farms is overwhelmingly positive.
"Thousands of residents and businesses have signed up for community solar, and the [Maine Public Utilities Commission] awarded contracts in 2020 for a number of grid-scale solar farms," he said.
The Maine Renewable Energy Association's initial reaction to Biden's actions was that they would provide clarity for solar investors and developers.
"We believe President Biden's actions yesterday delivered important clarity for investors and developers to feel safe that their panel investments won't be stung by retroactive tariffs, which allows companies and individuals to continue building Maine-made solar for the benefit of all Mainers," he said.
Sam Zuckerman owns Maine Solar Solutions. He said his company hasn't been significantly impacted by recent solar tariffs because the business typically sources higher value panels from manufacturers that weren't affected by the tariffs.
"The tariff has had a greater impact on large-scale utility and community solar projects that tend to rely on Chinese solar panel manufacturers," he said.
Zuckerman added the introduction of tariffs was projected to have had a negative impact on the overall solar raw materials and equipment supply chain now and in future years.
"We are hopeful that the recently-announced suspension of tariffs will ease price increases and increase the supply of solar panels in the U.S. market," he said.
