April 11, 2022
Following the recent announcement that the Department of Commerce will move ahead with an investigation into solar panel imports from Chinese companies operating in Cambodia, Malaysia, Thailand, and Vietnam, members of the U.S. solar industry have been reacting to the news. In particular, entities such as the Solar Energy Industries Association (SEIA) have been highlighting the potentially disastrous impacts of the investigation.
The Impact of the Solar Anticircumvention Investigation
The SEIA has suggested the implementation of AD/CV tariffs would result in the loss of 16 GW of new solar installations—more than half the amount of solar installed in the United States in 2021. Tariffs would also lead to delays and cancellations of projects, as well as putting 70,000 of the solar industry’s 231,000 jobs at risk. Furthermore, having initially projected that the investigation would lead to a module import shortfall of roughly 8 GW, the SEIA now views this as a hopeful projection, with the potential for a far more damaging worst-case scenario.
The SEIA Solar Industry Survey
Following the news of the DOC’s decision, the SEIA launched a survey to gauge reaction across the solar industry. Though the survey is ongoing and still accepting responses from industry members, a preliminary presentation of the results on April 5 made for stark reading. The headline is that over 90% of 200+ respondents—which included industry members from residential, utility, commercial and industrial (C&I), community solar, domestic manufacturing, importation, distribution, finance, and other segments—expected a severe or devastating impact on their business.
Key Figures from the SEIA Survey
While the 90% figure above highlights the overall concern throughout the industry, the numbers below show the more specific concerns voiced by survey respondents.
75% report that they are already experiencing canceled/delayed module shipments.
11% have not yet been notified of delays, but anticipate that they will come.
Half say that 80% of their 2022 pipeline—including already-completed projects—is at risk.
Two-thirds say that 50% or more of their workforce is at risk of layoffs/termination.
One-third say that their entire workforce is at risk.
60% expect a severe or devastating impact on the energy storage industry.
To learn more about going solar, reach out to YSG Solar today. YSG has been operating in the solar industry for over a decade now, working on everything from small rooftop projects to large-scale solar farms. We will identify the ideal solar solution for your energy needs and make that solution a reality. Call the office at 212.389.9215 or send us an email to find out how much you could save with solar.
YSG Solar is a project development company responsible for commoditizing energy infrastructure projects. We work with long-term owners and operators to provide clean energy assets with stable, predictable cash flows. YSG's market focus is distributed generation and utility-scale projects located within North America.
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Featured Photo by Kindel Media.