The anticipated end of a two-year reprieve on solar panel tariffs from China coincided with unexpected tariffs on other energy transition-related sectors. On May 14, President Joe Biden announced increased tariffs on Chinese imports in strategic areas such as solar cells, steel, aluminum, semiconductors, electric vehicles, lithium-ion batteries, battery components and other critical minerals. This move aims to counter China’s questionable trade practices but will add inflationary pressure to technologies already grappling with inflation and supply chain issues.
Despite progress in U.S. onshoring, reliance on Chinese imports remains significant. The U.S. currently has 13 GW of solar module production capacity and 19 GW under construction, sufficient for 2023 demand. However, domestic production of solar cells is limited, with only 3.3 GW expected to be operational this year as two new plants come online. Consequently, many solar projects will face tariff exposure until capacity increases. An additional 10 GW is projected to become operational in 2025, but this still falls short of current demand.
Research Highlights
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- EVOLVE 2024 – Grid Storage Economics: Opportunities for the Grid of the Future – A comprehensive overview of Enverus Intelligence Research’s views on battery storage economics from ancillary strategies to arbitrage opportunities.
- EVOLVE 2024 – Evolving Regulations: Estimating the Impact of Policy on Energy Economics and M&A –There has been a flurry of federal regulations that have been finalized recently or will be finalized in the next 12 months that will impact energy economics and M&A strategies. This presentation examines which regulations or policies are most impactful, how these rules are interconnected and what are the potential impacts to energy economics and M&A strategies.
- EVOLVE 2024 – Emissions Intelligence: The Art, Science and Market Implications of Enhanced Visibility – This presentation, shown at the Enverus EVOLVE 2024 Conference, delves into how emissions are being captured today and the global emissions monitoring landscape. We examine what technologies we believe will enhance emission visibility and how to expect those technologies to be deployed.
About Enverus Intelligence®| Research
Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations, and macro-economic forecasts and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. EIR is registered with the U.S. Securities and Exchange Commission as a foreign investment adviser. Click here to learn more.
