The renewable energy industry received good news this week as President Biden vetoed Congress’ attempt to repeal the solar tariff moratorium. The moratorium was first put in place by the Trump administration in 2018 and is set to expire in 2022.
The solar tariff moratorium provides a two-year exemption from tariffs on imported solar panels and related equipment. The exemption was put in place to give the US solar industry time to strengthen and become more competitive with foreign imports in the rapidly growing solar market.
The Importance of the Solar Industry
The solar industry is a critical part of the renewable energy sector and has been growing exponentially in recent years. According to the Solar Energy Industries Association (SEIA), the US solar market is expected to triple in size by 2030, with solar accounting for 20% of all US electricity generation by 2030.
The solar industry also provides a significant amount of jobs in the US, with over 242,000 people employed in solar-related fields in 2020.
The Impact of a Repeal
If the solar tariff moratorium was repealed, it could have a devastating impact on the US solar industry. Tariffs would drastically increase the cost of imported solar panels and related equipment, making it much harder for US solar companies to compete with foreign imports.
Additionally, a repeal could result in a significant number of job losses in the solar industry, as solar companies may be forced to cut costs due to the increased tariffs.
The President’s decision to veto the repeal has been met with joy from the renewable energy industry. SEIA CEO Abigail Ross Hopper praised the decision, stating, ‘This veto is a win for American solar companies and the workers they employ. It ensures that we will stay on track to meet our clean energy goals, create new jobs, and build a more resilient and equitable energy system for all Americans.’
The US solar industry can now breathe a sigh of relief knowing that the solar tariff moratorium will remain in place for another two years, allowing American solar companies to continue to grow and compete in the global market.