(Reuters) – Solar panel prices could rise by as much as 66% if the U.S. imposes new tariffs on imports from Southeast Asia, shattering the country’s goals for an energy source crucial to combating climate change are at risk, according to an analysis published on Tuesday.
The report from Clean Energy Associates, an industry supply chain consultancy, is among the first to examine the potential impact of new tariffs on solar cells and modules from Malaysia, Cambodia, Vietnam and Thailand.
Some of the world’s largest solar equipment makers in April asked President Joe Biden’s administration to impose tariffs on these imports to protect billions of dollars in investments in U.S. manufacturing.
Biden’s landmark climate change bill, the Inflation Reduction Act, includes big incentives for companies that produce clean energy equipment in the United States and has led to a boom in plans for domestic solar factories.
According to CEA’s analysis of the proposed tariffs, prices for U.S.-made solar panels could increase by 10 cents per watt, or 45 percent, to 32 cents per watt, while the cost of imported modules could increase by 15 cents per watt, or 66 percent. could rise. %, up to 40 cents per watt.
Such high costs would make it much harder for solar projects to make money and could threaten U.S. goals of deploying enough solar energy to make a meaningful dent in greenhouse gas emissions, the company said.
According to many models, the U.S. needs to install 500 gigawatts (GW) of solar power by 2030 to meet climate goals, up from the 177 GW available at the end of 2023, CEA said.
U.S. panel factories need imports of solar cells from Southeast Asia because there is currently no domestic cell supply, CEA said.
