Biden hurts renewables more than Trump, solar boss says

Biden hurts renewables more than Trump, solar boss says

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America’s largest solar farm builder has accused Joe Biden of doing more harm to the industry than the Trump administration’s “dysfunctional” climate policies.

George Hershman, CEO of Solv Energy a probe The Commerce Department this week launched an investigation into whether solar groups are dodging import tariffs that could disrupt new projects and undermine the president’s climate agenda.

“The Biden administration, especially this business [department’s] more damage to renewables than the previous administration,” said Hershman, whose company is the largest installer of large-scale or “utility-scale” solar projects in the U.S.

“At least we know where that government is [Trump] standing. This administration says every day how much they support renewable energy, and then actively decides against it. “

His comments came after the Commerce Department agreed on Tuesday to investigate whether solar component makers circumvented tariffs on Chinese imports by moving the final stages of the manufacturing process to Cambodia, Malaysia, Thailand and Vietnam.

Analysts estimate that about three-quarters of U.S. solar product imports come from these four countries. The probe was brought by California-based domestic panel maker Auxin Solar, which argued that Chinese suppliers were guilty of “pervasive backdoor dumping” that harmed U.S. manufacturers.

If the investigation finds that these practices constitute circumvention, the decade-long tariffs on Chinese imports will be extended to those countries, increasing costs by 50% to 250%. A final decision is expected early next year, but the tariffs will apply retroactively from April. The launch of the investigation alone has “cooled” the market, with manufacturers reluctant to ship parts that could be hit by tariffs later, the solar group said.

The case highlights the tension between the Biden administration’s climate and industry priorities. On the one hand, the White House wants to promote the rapid construction of clean energy infrastructure, but on the other hand, it wants to protect domestic manufacturing and employment.

“It’s a bit dysfunctional, a bit schizophrenic,” Hershman said.

His comments echo those of offshore wind developers, who have already express concern Forcing the industry to “buy American” until the domestic supply chain is fully developed will stop it.

Biden campaigned for an ambitious climate agenda, but legislation that was supposed to implement much of the agenda failed to pass Congress. The bill includes unprecedented tax breaks for renewable energy developers and manufacturers.

“If we pass this bill, we’ll build American manufacturing, no doubt about it. But we’re not going to launch major capacity in two years,” Hershman said. “Now we need to leverage the existing global supply chain and then start the transition to the U.S. supply chain.”

However, Auxin disagrees, arguing that it is feasible for the United States to increase the supply of domestic components.

“Companies who say there is insufficient domestic supply are not even trying to source domestically,” said Mamun Rashid, chief executive of Auxin.

“We have capacity available and we have enough purchase orders that we can scale quickly. But we need a fair price that allows us to cover our costs and pay our employees a fair wage.”

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