America’s largest solar farm builder has accused Joe Biden of doing more harm to the sector than the Trump administration with a “dysfunctional” climate policy.
George Hershman, chief executive of Solv Energy, said an investigation launched by the US Commerce Department this week into whether solar arrays were dodging import tariffs threatened to halt new projects and derail the climate agenda. Of the president.
“The Biden administration, and in particular this trade [department’s] decision, has done more damage to renewables than the previous administration,” said Hershman, whose company is the leading installer of large solar or “utility-scale” projects in the United States.
“At least we knew where this administration [Trump] upright. This administration says every day how pro-renewable it is, but then actively makes decisions in opposition.
His comments come after the Commerce Department agreed on Tuesday to investigate whether solar parts makers were circumventing tariffs on Chinese imports by moving the final stages of the manufacturing process to Cambodia, Malaysia, Thailand and In Vietnam.
Analysts estimate that about three-quarters of US imports of solar products come from these four countries. The investigation was called for by a domestic panel maker, California-based Auxin Solar, which argued that Chinese suppliers were guilty of “pervasive devious dumping” that harmed U.S. manufacturers.
If the investigation reveals that these practices constitute circumvention, the customs duties applied for a decade on Chinese imports would be extended to these countries, increasing the costs by 50 to 250%. A final decision is expected early next year but the tariffs would apply retroactively from April. Solar groups said the launch of the probe alone had “chilled” the market, with manufacturers reluctant to ship parts that could later be hit with tariffs.
The case highlights a tension between the Biden administration’s priorities on climate and industry. On the one hand, the White House wants to accelerate the construction of clean energy infrastructure, but on the other hand, it wants to protect domestic manufacturing and jobs.
“It’s a little dysfunctional, it’s a little schizophrenic,” Hershman said.
His comments echo those of offshore wind developers, who have expressed concern that forcing the industry to “buy American” before a domestic supply chain is fully developed will stop it in its tracks.
Biden campaigned on an ambitious climate agenda, but legislation that would have implemented most of it failed to pass Congress. The bill included unprecedented tax incentives for developers and manufacturers of renewable energy.
“We will build American industry if we pass this bill, there is no doubt about it. But we’re not going to put off the major capability for two years,” Hershman said. “Right now we need to use the global supply chain that’s in place and then start transitioning to a US supply chain.”
Auxin however rejected this, arguing that the United States increased domestic parts supply was feasible.
“The same companies that say the domestic supply is not enough are not even trying to buy from domestic sources,” said Mamun Rashid, general manager of Auxin.
“We have spare capacity and with enough purchase orders we can scale quickly. But we need a fair price that allows us to cover our costs and pay our employees a fair wage.
