Bifacial Exemption for Solar Panels Ending; TRQ for Cells to More Than Double

The exclusion from solar safeguard tariffs for bifacial solar panels -- originally meant to help utility-scale installations -- is about to end, the Biden administration announced May 16.

There is no domestic production of this kind of solar panel, which has the ability to absorb light on both sides. However, since these were the only imported panels that weren't subject to Section 201 tariffs, currently at 14.25%, bifacial panels were imported in larger and larger numbers. According to an International Trade Commission assessment of the safeguard tariffs, (see 2402080061), from January to June 2023, 11.9 million bifacial modules were imported, and only 1.7 million non-bifacial modules were imported.

The administration also announced other measures that seek to make domestic production more cost-competitive with imports. The Commerce Department found in 2023 that solar panels made in Southeast Asia should have been considered Chinese in origin, and thus subject to antidumping and countervailing duties. However, even before that final determination, the president said no trade remedy deposits could be collected on those imports until June 4 this year. The White House reminded importers that panels from the affected countries imported before that date have to be installed within 180 days of entry. CBP "has announced that it will vigorously enforce this provision, including by requiring importers to provide to CBP a certification of solar module utilization with detailed information about the modules being deployed," the release said.

The solar safeguard also covers imported cells, but allows for a 5 gigawatt tariff rate quota. As solar panel factories have opened in the U.S. -- spurred by incentives under the Inflation Reduction Act -- domestic cell production has not expanded as rapidly. This announcement said that it will hike the TRQ to 12.5 gigawatts if "imports approach the current quota level."

The Solar Energy Industry Association, which represents both domestic producers and installers, said it is pleased that the TRQ on cells may increase. "Today’s decision will help create a strong, stable module manufacturing sector that can sustain robust cell production in the long run. We also appreciate the recognition that businesses will need additional time to adjust to the changes to the bifacial module exemption, helping to mitigate further disruptions."