U.S. Department of Energy Secretary Jennifer Granholm has raised concerns about the U.S. ability to achieve a carbon-free, polluting power sector by 2035 unless the Department of Commerce (DOC) investigation into solar tariffs is resolved quickly.
One of the questions Granholm was asked at a hearing of the Senate Committee on Energy and Natural Resources last Thursday (May 5) was what risks the U.S. solar industry would face if the DOE investigation dragged on for months or years. .
"The risk is that investment and employment are completely stifled," she said. "There's also independence as a country by getting fuel from its own sources of electricity.
I understand that this is an adjudication process by the Department of Commerce, so this is not under the jurisdiction of the Department of Energy. Of course, if this problem cannot be resolved quickly, then I am deeply concerned about the achievement of the 2035 goal of 100% clean electricity. "
In March, the DOC decided to investigate whether solar cells and modules assembled in Cambodia, Malaysia, Thailand and Vietnam circumvented US anti-dumping and countervailing duties on cells and modules from China.
U.S. solar developers face the threat of widespread module shipment cancellations and delays, and if DOC does find evidence of circumvention, retroactive tariffs could be set at 50-250%.
As project development slows, the Solar Energy Industries Association (SEIA) has found that the investigation will lead to a planned 24GW drop in U.S. solar capacity over the next two years.
In response to Granholm's comments, Senator Martin Heinrich said he was listening to manufacturers and installers about job losses and project cancellations. "None of us have the authority to tell the Commerce Department how to fix this process. However, if it's not done very quickly, we're going to destroy the industry."
Heinrich was part of a bipartisan group of 22 senators that sent a letter to President Biden earlier this month asking the administration to quickly review the case. The letter warns that the expanded tariffs "would severely curtail the growth of the solar industry" and cost tens of thousands of U.S. jobs.
Another signatory to the letter, Senator Mazie Hirono, said at last week's hearing that the solar project "is coming to an abrupt end" because of the potential fallout from the investigation. She suggested to the DOC what resources could be provided to address the short-term impact on solar projects and address long-term issues related to the solar supply chain.
Granholm responded: "It does raise the issue of building a complete solar supply chain within the U.S. so that we don't have to worry about imports."
Granholm's warning about the impact of the U.S. energy transition comes as utility NiSource said it has delayed closing some coal units due to delays in solar projects caused by the DOC's tariff probe.
An industry-wide survey released by SEIA last month found that the U.S.'s prospects for meeting its climate goals "dimmer as the survey continues."