US Solar Panel Manufacturers Advocate for Stronger ‘Made in USA’ Rules to Boost Domestic Industry
With the global push towards clean energy and reducing carbon emissions to combat climate change, the demand for renewable energy sources such as solar power has increased. However, there is a growing concern among US solar panel manufacturers that they are not receiving a fair share of the market.
According to an article on US News, a coalition of US-based solar manufacturers is seeking to toughen the rules governing a tax credit for solar project developers that use domestically produced components. The group argues that developers can obtain the tax credit without using American-made solar panels.
The tax credit is aimed at reducing reliance on Chinese-made goods and incentivizing the use of American-manufactured equipment. It is a crucial part of the US government’s efforts to increase investment in clean energy and create a more robust supply chain to compete with China. However, solar manufacturers report a loophole in the current system that allows a project to meet the 40% domestic content subsidy threshold by using US-made steel racking to mount panels and an inverter to regulate the power generated by the sun – even if the panels themselves are imported.
This scenario, according to the Solar Energy Manufacturers for America Coalition, undermines the administration’s goals of building a robust solar supply chain in the US, particularly because panels are more challenging and expensive to manufacture than steel racking and inverters.
As such, the coalition has called on the Biden administration to make improvements to the tax credit system and close the loophole. Solar manufacturers are counting on the tax credit to increase demand for solar panels, cells, and the raw materials used in producing them. However, until the system is improved, solar companies in the US are at a disadvantage compared to producers overseas.
In conclusion, a coalition of US solar manufacturers is urging the Biden administration to toughen the rules governing tax credit for solar project developers that use domestically produced components. The current system is seen to have a loophole that undermines the administration’s efforts to build a robust solar supply chain. Addressing this issue will encourage investment in clean energy, provide better support for US-based solar manufacturers and reduce reliance on Chinese-made goods.
