The Biden administration raised tariffs on several clean energy products last week. On the other hand, federal incentives for clean technology manufacturers have spurred billions in private investment in clean energy in North Carolina, bringing solar panel and battery manufacturing to the state as the government attempts to increase local clean energy capacity.
If federal spending programs, such as the Inflation Reduction Act and the bipartisan infrastructure law, are the carrot, then new tariffs on Chinese semiconductors, lithium-ion batteries, and solar cells are the stick.
Tariffs on electric vehicles are expected to nearly quadruple this year, even though the United States imports few electric vehicles from China.
The intent is to boost domestic clean technology production, which could benefit companies in North Carolina, according to Matt Appel, executive director of the North Carolina Sustainable Energy Association.
“With the investments coming out of these bills, and then some of these tariffs, that will really help to continue to grow the domestic solar manufacturing market,” Abele said.
The effects of all tariffs may not be felt acutely by American consumers, but the end of a two-year pause on Chinese solar manufacturing tariffs targeting products assembled in Southeast Asia would raise prices for the majority of U.S. solar imports.
Demand for solar energy will continue to grow as the state seeks to meet its emissions reduction goals by 2030. North Carolina currently ranks fourth in the United States in solar energy deployment, with solar outpacing coal in energy production.
“Solar has been one of the lowest energy costs available for both utilities and consumers,” Abele said. “Part of that was fueled by modules that were relatively inexpensive coming from places like China.”
Meanwhile, recent federal incentive programs have boosted domestic production of solar equipment. The latest new company, Boviet Solar, announced its first solar panel manufacturing facility in North Carolina earlier this year.
(tags for translation)Domestic manufacturing
