The government will waive solar panel detour prevention fees for two years and implement defense production laws to speed up domestic production of solar panel components, energy-efficient heat pumps, building insulation, and transformers needed for power grids. Did.
The cause of the panic in the PV industry is whether Cambodia, Malaysia, Thailand and Vietnam are using parts from China that are subject to U.S. tariffs to circumvent U.S. trade laws. It was an investigation. Supply chains have been rapidly depleted due to steep, retroactive tariffs that could be slapped by panels from these countries.
“The actions of the completely independent Commerce Department have created the crisis we have been hearing,” Energy Secretary Jennifer Granholm said on Tuesday.
The government sought to walk the delicate line between protecting the Commerce Department’s investigation and stopping further unemployment in the PV industry. Various offices and departments, including the National Economic Council, the White House Climate Bureau, and the Legal Advisory Office, were engaged in this effort, according to familiar sources.
“I think everyone, including the White House, was surprised by the sudden shutdown of the industry,” Abigail Ross Hopper, chairman of the Solar Energy Industries Association, told CNN. According to SEIA data, 318 solar projects have been postponed or canceled in the last two months, supporting 50,000-100,000 jobs.
Industry leaders and CEO Solar told CNN that they were happy with the wide range of actions taken by the administration, but some wanted to act faster.
“The industry supports the administration’s swift action, but it still caused months of impact and delay,” George Hershman, CEO of utility solar contractor SOLV Energy, told CNN. “We then have to recover. It will take some time.”
Granholm defended the administration’s actions, saying it acted swiftly while maintaining the Commerce Department’s tariff investigation.
“We are pleased that this will stop bleeding and pave the way for a solid manufacturing industry,” Granholm said. “I think we acted swiftly, thoughtfully and responsibly, to meet at the moment.”
“Basically Armageddon” for the solar industry
Senator Martin Heinrich, a Democrat in New Mexico, was in the process of installing solar panels at home this spring when he was called by the CEO of a panicked solar company.
“Basically I was calling left and right about Armageddon,” Heinrich told CNN.
The CEO suddenly said he couldn’t buy solar panels from foreign suppliers. Four Southeast Asian countries supply an overwhelming number of US panels and parts. With few or no solar panels to buy, utility-scale solar companies were unable to build large new arrays or complete existing projects.
“I’ve heard that this actually kills the solar industry,” Democratic Nevada Senator Jacky Rosen told CNN.
Much of the solar industry felt the effects of commerce tariff investigations almost immediately, but flew under radar for some time and was initially less noticed by the White House.
“It took a little longer to sink than I expected,” said one industry source familiar with the debate.
Hirschman said Granholm was “supportive and had an early understanding of the subject.” The clean energy industry group also raised concerns early on to Biden’s White House National Climate Advisor Gina McCarthy and US Climate Envoy John Kerry. But when the White House executives, including Crane and Ricketti, were involved, the executive response speeded up.
“Once Ron Klain and Steve Ricchetti reach a level where they fully understand the size of the economy and its impact on work, conversations at all levels will look like constructive ways from this economic situation. It changed quickly, “he said, saying he is familiar with source discussions.
Ultimately, Ross Hopper said the debate over unemployment was particularly compelling at the White House, but executives also said that Russia’s power grid reliability and energy security during the ongoing war with Ukraine We were concerned about the reduction in the amount of solar power deployed, which would affect security.
A faint light of hope for climate supporters
The White House announcement on Monday gave an optimistic view of climate change, which I felt discouraged for months.
Leah Stokes, Senior Policy Advisor at Evergreen, told CNN. Monday marked a turning point, she added: “I think it’s a big climate victory.”
Defenders of climate change and progressive Democrats have been calling on the government for months to enact the Defense Production Act to produce heat pumps and other forms of clean energy. After Russia’s invasion of Ukraine, these calls have increased as a way to help Europe steal Russia’s energy without increasing its reliance on fossil fuels.
However, the question remains as to whether they can achieve the highest awards. A Democrat who has a climate change agreement with Senator Joe Manchin of West Virginia.
Manchin and Senate Majority Leader Chuck Schumer are negotiating a party-line spending bill, and Manchin told CNN this week about climate and clean energy provisions, including tax deductions for solar and wind energy, as well as electricity. He said there was still disagreement about. vehicle.
“The government is struggling, and people in climate change are struggling and are coming to agree,” Manchin told CNN.
Proponents say the administration has stopped the imminent crisis in its solar industry, but it still has more work to do with Manchin.
CNN’s Manuraju contributed to this report.
Source: www.cnn.com
