The American Solar Energy Manufacturers Alliance Proposes To Accelerate The Localization Of The Photovoltaic Industry Chain

●After European photovoltaic module manufacturers issued a statement, US photovoltaic manufacturers asked the US government to take stricter action on the import of photovoltaic modules.

 

●Much like European PV module manufacturers, US PV module manufacturers also claim that uncontrolled imports are leading to an oversupply of PV modules, thereby driving their prices down to unsustainable levels.

 

The U.S. Solar Energy Manufacturers Alliance (SEMA) pointed out in a research report commissioned by the research firm Guidehouse Insights that the U.S. government should strengthen its efforts to ensure that the domestic photovoltaic manufacturing industry can cope with the challenges posed by photovoltaic products imported from Asian countries.

 

Mike Carr, executive director of the Solar Energy Manufacturers Alliance (SEMA), said: "Thanks to the U.S. government's passage of the Inflation Cutting Act, we have an opportunity to build a sustainable, strong U.S. photovoltaic supply chain that ensures the U.S. remains secure in this critical energy resource. Reliance on imports. This research report shows that if we want to have a clean energy future in the United States, we need sustained efforts by the U.S. government to not let our trade adversaries undermine efforts to reshor manufacturing."

 

Here are some of the key findings from the research report:

 

●The U.S. market has strong demand for photovoltaic modules, but it is too dependent on imports. A comprehensive supply chain analysis has found critical gaps in U.S. silicon rods, wafers and photovoltaic cells and revealed the strong dominance of Chinese photovoltaic module manufacturers.

 

●Breaking the current monopoly on needed components is critical to U.S. energy security. According to the report, China-made photovoltaic products dominate the world, accounting for 99% of the world's silicon wafer production and more than 80% of the world's polysilicon production. These two core products account for more than half of the value of photovoltaic modules.

 

●Photovoltaic products exported by China and Southeast Asian countries have brought resistance to the United States' efforts to reshor the photovoltaic manufacturing industry. Overcapacity and exports far exceed demand, which has largely eliminated the EU photovoltaic manufacturing industry, while US photovoltaic developers are also hoarding photovoltaic products in large quantities and driving prices to new lows that do not reflect true production costs. This is undermining legitimate investment in U.S. PV module manufacturing.

 

The report said that depending on the tariff situation, by 2024, the supply of photovoltaic modules in the United States will be 2.4 to 2.7 times its demand. This is higher than the International Energy Agency's current estimate of 1.5 years of inventory PV module supply.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The report also found that the U.S. tax rate on photovoltaic modules in 2023 will be 0.4%, which is much lower than the 9.6% rate in 2021.

The report blasted U.S. photovoltaic developers for focusing only on the cost of photovoltaic modules, arguing that this is the main issue for photovoltaic deployment. The report claims that if the United States produces photovoltaic products domestically, related industries, workers and consumers in the United States will benefit. Investments in domestic PV module manufacturing capabilities strengthen U.S. energy security, reduce the impact of disruptions to global supply chains, and create more jobs. The report claims that photovoltaic module costs have a limited impact on photovoltaic deployment and that manufacturing photovoltaic materials and photovoltaic modules in the United States means cleaner production and higher labor standards.

 

The following are policy recommendations put forward by the Solar Energy Manufacturers Alliance (SEMA):

 

● Domestic content: U.S. policymakers should set strict standards for using domestic content and government purchases to obtain tax credits to incentivize investment in high-value and capital-intensive parts of the PV supply chain, such as wafer and polysilicon production.

 

●Vigorous Enforcement of U.S. Trade Laws: Vigorous enforcement of anti-dumping trade laws and aggressive enforcement of UFLPA regulations are critical to maintaining a level playing field for domestic PV module manufacturers who adhere to higher labor and environmental standards.

 

●Procurement: In addition to developing incentives related to domestic manufacturing, the U.S. government needs to lead by example and require all PV developers with power purchase agreements to use U.S.-made PV modules.

 

The Solar Energy Manufacturers Alliance (SEMA) claims that these policy proposals will drive the market to purchase more expensive American-made photovoltaic modules. The alliance said total PV system costs increase slightly depending on the application when using higher-priced U.S.-made PV modules. Potential cost reductions in other areas of PV deployment (i.e. permitting, installation/overhead and system balancing operations) may have a greater impact on market growth.

 

Carr said: "U.S. photovoltaic module manufacturers are far from reaching their full potential because the United States has not shed its over-reliance on imported photovoltaic modules and failed to provide a level playing field to help drive investment and innovation. The Chip Act and The policies and tools provided by the Inflation Cutting Act are game-changing for the U.S. government, but they must take full advantage of these policy tools to break the monopoly of imported products by integrating the PV supply chain."

 

In fact, the US taking steps like what India has done on imported PV modules (imposing tariffs, DCR requirements and using non-tariff barriers such as the ALMM list) may have limited short-term impact on India's exports of PV products to the US. Influence. India's photovoltaic product exports to the United States have performed well this year and have gained more market share.

 

 

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