The Biden administration has recently introduced tariffs on clean energy products, including solar panel and battery manufacturing facilities in North Carolina. These measures are part of the government’s efforts to enhance domestic clean energy capacity. Meanwhile, federal incentives have encouraged significant private investments in clean energy in the state, leading to the establishment of these facilities.
The tariffs on Chinese semiconductors, lithium-ion batteries, and solar cells have also been introduced as a means to promote domestic clean tech production. Despite this, U.S. consumers may not immediately feel the impact of these tariffs. However, the end of a two-year halt on Chinese solar manufacturing duties targeting products assembled in Southeast Asia is expected to result in higher prices for most U.S. solar imports.
Despite the increase in prices, the demand for solar energy is projected to rise as North Carolina works towards achieving its 2030 emissions reduction targets. Ranked fourth in the U.S. for solar deployment, North Carolina has surpassed coal in energy production thanks to the affordability of solar energy. Solar energy has been one of the most cost-effective energy sources for utilities and consumers, largely due to the availability of inexpensive modules from countries like China.
Recent federal incentive programs have spurred the growth of domestic solar equipment production, with Boviet Solar announcing the opening of its first solar panel manufacturing facility in North Carolina earlier this year as a result of these initiatives. Matt Abele, the executive director of the North Carolina Sustainable Energy Association, believes that the combination of investments from federal spending programs and tariffs will contribute to the expansion of domestic solar manufacturing and benefit local businesses.
In summary, while some may see these measures as protectionist or potentially harmful to U.S. consumers initially, they ultimately aim to support domestic clean energy production and reduce emissions while benefiting local businesses such as Boviet Solar’s new facility in North Carolina