Growth of solar energy needs stable regulatory and incentive environment so that the industry can make long term commitments to funding and capital
PVTIME – Array Technologies (NASDAQ: ARRY) (“Array” or “the Company”) is disappointed by the U.S. Department of Commerce’s decision to investigate an allegation of tariff circumvention on solar modules. It is our belief that this request has no merit and does not meet the criteria for such a petition, as defined by the Department of Commerce. This action will undermine momentum with current solar energy developments and the mere disclosure of this trade review has galvanized industry-wide agreement on the negative impact to current and future projects, long-term supply-chain disruptions, and increased price volatility.
Furthermore, the petition seeks to protect a domestic supply chain that cannot yet adequately deliver on the current growth trajectory. US module suppliers do not have supply for the solar industry’s growth rate – US-based panel providers are sold out through 2024 and are not currently equipped to meet our customer’s demand. As the largest American utility-scale tracker company, Array Technologies is highly supportive of a more robust domestic source of modules, however this supply chain does not exist today. We seek a more practical solution for the short to mid-term for our industry.
Apart from the one company that requested this review, the industry is speaking with one voice against any further tariffs or undue international trade limits that could arise from a prolonged inquiry. The solar energy industry needs this inquiry to be concluded quickly knowing it’s already stalling projects and impacting supply chains for essential equipment. This inquiry presents a distraction from the real business at hand: reducing reliance on fossil fuels; increasing clean energy in the supply mix; and making real and lasting progress in cutting greenhouse gas emissions through renewable energy.
This setback threatens solar industry’s position as a key pillar of the energy transition in the U.S. Domestic production of solar panels cannot meet current demand and fully serve the growing pipeline of projects over the next five years. Until domestic module sources become more reliable and economical, we are reliant on responsibly sourced overseas production to meet operational demands in support of our country’s energy transition and environmental goals.
If the Biden administration is to maintain its commitment to expanding clean energy, we then advocate for the Department of Commerce inquiry to reach a favorable decision immediately and reject this reckless tariff petition.
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