The EU and the US are leading efforts to reduce the carbon intensity of PV manufacturing through targeted import tariffs. As well as supporting decarbonisation efforts, such policies could also promote geographic diversification in the solar supply chain and greater supply resilience, writes Michael Parr of the Ultra Low Carbon Solar Alliance.
PV Tech Premium speaks with analysts and trade bodies to examine what the newly agreed Inflation Reduction Act (IRA) could mean for US solar manufacturing
The decision of US President Joe Biden to waive tariffs on solar imports from Southeast Asia for two years and authorise the US Department of Energy (DOE) to use the Defense Production Act (DPA) to accelerate the production of clean energy technologies, including PV modules and module components, has been broadly welcomed by the US solar sector and industry analysts.
US solar manufacturers can compete with Chinese companies for US PV projects given additional import costs and modules making up less than half a project's costs, while also ensuring a secure supply to the US market, lowering the carbon intensity of products and exploiting strong market demand, says Michael Parr, executive director of the Ultra-Low Carbon Solar Alliance (ULCSA).
