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Pv-Magazine
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Tariffs the least of U.S. solar market’s worries
- President Trump's import tariffs have minimal impact on solar and battery industries compared to potential threats such as AD/CVD investigations and the UFLPA expansion.
- The Section 232 tariffs, covering solar trackers and frames, could still affect developers and EPC firms despite the presumption of shielding from domestic purchases.
- IEEPA levies impacting goods like transformers from Mexico may lead to a shift in supply chains, but are not expected to significantly raise prices for PV system components.
- For battery energy storage systems, the tariffs are projected to have a lesser impact, with racks being the primary concern, albeit representing a small percentage of total system cost.
- AD/CVD investigations pose a larger threat, reducing PV module imports, shifting production locations for cells away from affected nations, and impacting the US battery market significantly.
- The UFLPA's focus on forced labor in Xinjiang has led to detentions of electronics, primarily PV modules, presenting a considerable risk to the solar market.
- The potential expansion of UFLPA actions could further disrupt clean energy imports, with added scrutiny on companies involved in the supply chain from the region.
- The combined impact of tariffs, duties, and potential UFPLA actions creates significant risks for the solar and battery industries, adding to overall uncertainty in the market.
- Clean energy stakeholders must stay informed about policy changes and industry developments to navigate the evolving landscape and mitigate risks associated with regulatory shifts.
- Amidst the challenges, vigilance and strategic decision-making will be crucial for companies in the clean energy sector to adapt and thrive in a changing regulatory environment.
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