SEMA urges solar policy reform, citing China dependency

11 Apr 2024 CW Team

After US Treasury Secretary Janet L Yellen's visit to China, the Solar Energy Manufacturers for America (SEMA) Coalition urged immediate White House and Treasury action regarding the issues confronting domestic solar manufacturing. The coalition expressed worries about the accumulation of below-cost imported solar modules and requested an update to the domestic content bonus credit rules of the Inflation Reduction Act (IRA).

SEMA highlighted that the existing credit system allows modules mainly made in China to be treated as if they were produced in the US with minimal domestic processing. According to them, this policy undermines local manufacturers and increases US reliance on Chinese solar products.

Mike Carr, Executive Director of SEMA Coalition, stated, "We?re heartened that Secretary Yellen acknowledged the unlevel playing field from which Chinese-headquartered solar manufacturers are currently benefiting and the fragility inherent in the U.S.?s dependence on China for solar. But it?s time to act. The White House must act aggressively to re-balance the playing field and end the destructive race to the bottom we are currently in with importers."

The Coalition advocates for policies supporting the expansion of a sustainable domestic solar manufacturing supply chain, with an emphasis on including U.S.-produced solar grade polysilicon and solar wafer in the Domestic Content Bonus calculation.

Carr added, "The government is facilitating a dependence on China that we wouldn?t allow in any other sector; we must ensure our stability and security as we transition to clean energy."

A report commissioned by SEMA and authored by Guidehouse Insights highlighted the opportunity and policy recommendations for onshoring the solar manufacturing industry to strengthen US energy security and address the challenges posed by the current dominance of foreign interests in the industry.

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