The U.S. Department of Commerce’s International Trade Administration (ITA) has taken preliminary action to impose countervailing duties on crystalline silicon photovoltaic (PV) cells imported from Cambodia, Malaysia, Thailand, and Vietnam.
This decision follows a petition filed by the American Alliance for Solar Manufacturing Trade Committee in April 2024, which argued that these countries were unfairly benefiting from government subsidies, harming the U.S. solar manufacturing sector.
The countervailing duties (CVDs) target government subsidies provided to solar panel manufacturers in these countries. In particular, due to critical circumstances found by the Commerce Department, producers from Vietnam and Thailand with above-de minimis CVD margins will see these duties applied retroactively by 90 days.
Crystalline silicon photovoltaic cells, at the heart of this case, are critical components in solar power generation. These cells are composed of silicon atoms arranged in a highly organized crystal lattice, which enhances their ability to convert sunlight into electricity efficiently. Crystalline silicon cells dominate the global solar market, accounting for about 95% of all commercial PV cells due to their high efficiency, low cost, and long lifespan.
There are two primary types of crystalline silicon PV cells:
The prevalence of these cells in residential, commercial, and utility-scale solar installations underscores their importance to the global shift toward renewable energy. With continued advancements, researchers aim to enhance the efficiency of crystalline silicon PV cells while lowering production costs.
The investigation into solar panel imports from Southeast Asia began in May 2024, following the petition from the American Alliance for Solar Manufacturing Trade Committee.
This coalition represents several U.S. solar manufacturers, including Convalt Energy, Meyer Burger, and Qcells. They argue that unfair subsidies provided by the Cambodian, Malaysian, Thai, and Vietnamese governments are distorting the solar market and harming U.S. manufacturers.
The International Trade Commission (ITC) supported this claim with a preliminary ruling in June 2024, finding that subsidized imports from these countries were injuring U.S. solar manufacturers. The ITC also noted that solar cells from Cambodia, though not currently causing injury, threaten U.S. companies.
The allegations escalated in August 2024, when the Alliance claimed that Chinese-owned solar manufacturers were rushing imports through Vietnam and Thailand before new tariffs could take effect. This claim, backed by a reported 39% increase in imports from Vietnam and 17% from Thailand between April and June, contributed to the preliminary determination of retroactive duties.
The decision is one step in a lengthy process. The Department of Commerce will issue its preliminary antidumping determination in late November 2024, with final rulings on both antidumping and countervailing duties expected in April 2025. Until then, U.S. companies will continue to advocate for stronger protections against what they see as unfair trade practices.
For American solar manufacturers, these duties represent a critical effort to level the playing field and protect billions of dollars of investment in new solar production facilities. The potential for increased duties could further bolster U.S. solar manufacturing, which inexpensive imports from Southeast Asia have long challenged.
As the case progresses, crystalline silicon PV cell technology advancements will remain a key focus of the solar industry. Innovations in cell design and production techniques continue to improve efficiency and drive down costs, positioning crystalline silicon cells as a cornerstone of the renewable energy revolution.
