(CNN) The solar industry has been thrown into a panic and projects are stalled after the Biden administration launched an investigation that some solar executives are worried could destroy the industry.
The Commerce Department launched an investigation in March into four Southeast Asian countries that supply about 80 percent of U.S. solar panels and parts – Cambodia, Malaysia, Thailand and Vietnam – using components from China that should be subject to U.S. tariffs.
The consequences within the industry were significant.
A survey conducted by the Solar Industry Association, a nonprofit trade association, in late April found that 318 U.S. solar projects had already been delayed or canceled, and several CEOs told CNN they expected more to follow. Industry leaders fear the probe could also have a devastating impact on the solar workforce.
The Department of Commerce defended it as a transparent and necessary process, but several solar industry experts and executives for CNN also essentially froze most U.S. solar imports due to the threat of high, retroactive tariffs.
“With this administration and this much support, we are in a position to lay off people in the renewable energy industry,” George Hershman, CEO of SOLV Energy, a solar energy company, told CNN. “As you say all those things we agree with, we’re broken because we literally can’t buy a module today. It’s so frustrating.”
The investigation was launched after a small US company, Auxin Solar, filed a complaint in February. Auxin CEO Mamun Rashid told CNN that the complaint was “existential” for his company.
“When the prices of finished panels from Southeast Asia fall below our material prices, U.S. manufacturers cannot compete,” Rashid said, adding that “if foreign manufacturers circumvent U.S. law and harm U.S. manufacturers like Auxin Solar, it must be addressed.” “
Rashid told CNN that it was “sad” that the frustration was directed at his company, and not at “foreign suppliers” who he said were circumventing US law. Rashid also noted that Auxin “is here and can grow rapidly to meet the needs of utilities within 2 to 3 quarters if we have a purchase order today.”
Solar industry leaders have communicated with the Department of Commerce and also conveyed their concerns about the investigation to Biden’s top climate officials – including McCarthy and U.S. Climate Envoy John Kerry – a person familiar with the talks said.
“The administration has been in contact with and cooperates with all types of solar stakeholders, including trade associations, but also workers, communities and NGOs,” a White House official told CNN.
‘The worst moment’
The Commerce investigation comes after last year’s ban on solar panels and parts suspected of being linked to forced labor in China’s Xinjiang province. To see also : San diego solar panel installers.
The Department of Homeland Security ordered U.S. Customs and Border Protection to issue a temporary release order banning the import of Chinese company Hoshine Silicon Industry Co., after the government stated that the company was using forced Uighur labor.
“Obviously, the industry absolutely had to deal with all the concerns about forced labor, but the implementation of that [order] was far from smooth,” Abigail Ross Hopper, president of the Solar Energy Association, told CNN.
In ports across the country, CBP agents seized and detained all solar products they suspected were related to Hoshine, unless companies could prove they were not.
U.S. Customs and Border Protection statistics provided to CNN show that the agency retained 734 shipments worth $ 246 million, which, according to the agency, is only 1.86% of the total value of total solar energy imports to the United States. But Hershman said the order eventually led to a terrifying effect in the industry, where companies suspended deliveries for fear of being caught in an oversized network in U.S. ports.
“If you have captured material, you don’t want to send more,” Hershman said.
Solar executives and industry analysts told CNN that while the CBP order was eventually resolved with a good outcome for the industry, the impact of the Commerce investigation is like a blow.
“Solar is a big mess at the moment,” Marcelo Ortega, an analyst for Rystad, said. “This seems to be the worst moment for this to happen.”
This year was supposed to be a year full of American solar growth. Independent energy research company Rystad has estimated that the U.S. will add another 27 gigawatts of solar energy this year.
Now – between a Department of Commerce investigation, border seizures, high solar component prices and no new law in Congress to lubricate the wheels for more renewable energy – Rystad estimates the U.S. could add only about 10 gigawatts in 2022.
Ortega said the setback threatens Biden’s own climate goal of halving the emissions that are warming the planet by 2030. The United States would have to install about 50 gigawatts of solar photovoltaic capacity each year from 2022 to 2030 to keep Biden’s goal on track, according to Ortega’s analysis.
Ross Hopper told CNN that the industry is seeking security from markets and governments, but is currently not getting any of it.
“There has certainly been a steady pace of challenges that are constantly being posed to us on these very occasions,” Ross Hopper told CNN.
Commerce defends the probe
At a recent hearing on Capitol Hill, Trade Minister Gina Raimondo told lawmakers that strict trade laws require her department to initiate and complete an investigation. Read also : Increasing battery and fuel cell power with quantum computing. The department is expected to issue a preliminary finding on the investigation by the end of August, but a final decision could take until January 2023, a Commerce Department official told CNN.
“My hands are very tied here,” Raimondo said at the hearing. “I am obliged by the statute to investigate the claim that companies operating in other countries are trying to circumvent their obligations, and according to the statute, I am obliged to conduct a serious investigation.”
A Commerce official told CNN that the circumvention laws were “completely removed for political reasons.”
“We are committed to holding foreign producers accountable for playing by the rules,” the official told CNN.
Nevertheless, Raimondo has been questioned and criticized by politicians in both parties. A bipartisan group of 19 senators wrote to Biden this week asking for a quick preliminary decision on the investigation.
And at a recent hearing, Nevada Sen. Jacky Rosen, a Democrat, pressed Raimonda on her “very serious concerns” about the investigation.
“This will jeopardize tens of thousands of well-paid American solar jobs,” Rosen said. “If we lose these jobs, they won’t come back.”
Democratic Govin Newsom of California and Republican Gov. Eric Holcomb of Indiana also recently wrote to Raimondou expressing concern that the investigation could affect solar growth and jobs in their states.
While solar executives and industry analysts welcome the idea of a domestic solar supply chain, those who spoke to CNN said the Commerce Department’s investigation will not be a catalyst – the industry needs Congress to encourage it.
“If what we’re talking about is boosting domestic production, this isn’t the way to do it,” said Ben Catt, CEO of solar company Pine Gate Renewables. “This will have not only a multi-month, but also a multi-year impact on the solar industry. We and the administration need to consider how to double and triple the use of renewable energy in this country. And what we are doing is moving in the opposite direction.”
The country imported a total of 27.8 GW of solar panels in 2021 estimated at $ 8.9 billion, up from 26.7 GW a year earlier, Rystad said in a report. Malaysia and Vietnam were the two largest exporters of solar products to the United States.
Does Samsung use forced labor?
A Samsung spokesman said the company bans its suppliers from using all forms of forced labor and requires all jobs to be chosen freely.
Which companies use forced labor? In a report released in March, the Congressional Executive Committee for China, a bipartisan group of lawmakers, cited Nike and Coca-Cola as companies suspected of having links to forced labor in Xinjiang, alongside Adidas, Calvin Klein, Campbell Soup Company, Costco, H&M, Patagonia , Tommy Hilfiger and others.
Does Samsung use cheap Labour?
Samsung, like many other major smartphone makers, relies heavily on cheap Chinese labor to produce its products.
Does Samsung exploit its workers?
However, Samsung continues to use migrant subcontractors who are vulnerable to intimidation, abuse and exploitation by employment agencies. These workers stated that they had to pay extortionate employment fees, that their passports were confiscated and that they were threatened if they talked to the authorities.
Does Samsung use child labor?
Samsung has a zero-tolerance policy against ‘children’ (as defined below) as prohibited by international standards and relevant national laws and regulations at all stages of its global business.
Who are exploited in Samsung?
Samsung is exploiting young people in Asia … Young people who are hired as irregular workers stay in hard work in the hope that they will get a permanent position only to be fired when they reach the mid-20s.
Does Samsung have sweatshops?
A study conducted by the environmental NGO IPEN and the Center for Gender, Family and Environment in Development (CGFED) based in Vietnam reveals poor working conditions in Samsung’s Vietnamese locations for the production of smartphones.
Does Samsung use forced Labour?
Major technology companies, including Microsoft, Sony, Samsung and LG, are linked to the use of Uighur forced labor through their supply chains.
Where are solar panels made in China?
China Sunergy is one of the largest Chinese solar cell manufacturers based in Nanjing in Jiangsu, China. China Sunergy’s expertise is in the production of solar cells from silicone tiles. Although it has its main customer base in China, the company also sells its products worldwide.
Are solar panels manufactured in the US or China? Since 2004, U.S. production of photovoltaic cells that form solar panels has fallen from 13 percent of global supply to less than 1 percent, while China’s share has jumped from less than 1 percent to 67 percent, according to the National Renewable Energy Laboratory (NREL). ).
Are there any solar panels not made in China?
Cells Duo panels are manufactured in South Korea, Q. Cells Maxx panels are manufactured in China. The Korean giant, LG, announced in February 2022 that it was withdrawing from the production of solar panels. REC panels are manufactured in Singapore with an Indian owner.
Are any solar panels manufactured in the United States?
Here is a list of companies with solar panels made in the USA 2020: Heliene – Mountain Iron, MN (production plant in the USA) Mission Solar – San Antonio, TX. Seraphim – Jackson, MS (US Headquarters)
Are SunPower panels made in the USA?
Maxeon Solar will be the company responsible for producing the high-efficiency solar panels for which SunPower is known. The headquarters will be in Singapore, with factories in France, Malaysia, Mexico and the Philippines.
Are LG solar panels made in China?
At LG, we do not believe in outsourcing the production of our solar products. We manufacture all of our solar panels in our own manufacturing facilities in Gumi, South Korea, and Huntsville, Alabama.
Are solar panels made in China?
The vast majority of solar panels are now manufactured in China, several are manufactured in other countries, and only one is made here in Australia.
Are solar panels all made in China?
Nearly two-thirds of all solar panel equipment is currently manufactured in China. Many solar companies from all over the world either produce in China or procure parts from there.
Are any solar panels made in the USA?
Here is a list of companies with solar panels made in the USA 2020: Heliene – Mountain Iron, MN (production plant in the USA) Mission Solar – San Antonio, TX. Seraphim – Jackson, MS (US Headquarters)
Does Shein support Uyghur?
Advertisements seen by the BBC for workers in factories and warehouses say that those from certain ethnic minorities, including Uighurs, are not allowed to apply. Shein said he did not fund or approve the ads, and was committed to “maintaining high standards of performance”.
Is Shein an unethical company? Not only does SHEIN lack evidence of fair working conditions, but recent research proves it to be a lie, as SHEIN factory workers work up to 75 hours a week!
Is Shein Chinese owned?
Shein is a company from China. Although it has a base in China, there is no physical store or chain of stores responsible for order management. Shein started out as an online retailer that has only occasional pop-up locations around the world, with no permanent showcases.
Does Shein orders come from China?
Most SheIn items come from China, however they have a warehouse in the United States. The items only arrived to me in 2 working days and lasted as long as 15 working days. It usually depends on the number of items you order, but if you need clothes quickly, I would make sure you order earlier.
Who owns Shein China?
CEO Chris Xu, a Chinese citizen, is considering obtaining Singaporean citizenship in an attempt to help with the IPO process, the same report said, citing two people familiar with the matter.
Is Shein use child labor?
Fast fashion factories are also full of child labor, incompetent wages and the exploitation of workers. In 2021, workers at the SHEIN factory reported working 75-hour work weeks. Eighty-five percent of workers in the clothing industry internationally do not earn a minimum wage, bringing home 2-6 cents per piece of clothing.
Does Shein abuse their workers?
Throughout history, Shein has used unethical practices, such as child labor and sweating. Shein is one of the fastest growing online fast fashion retailers. Its parent company, Shenzhen Globalegrow E-Commerce Co. Ltd., is headquartered in China and home to many fast fashion e-commerce brands.
How are Shein workers treated?
But a Sixth Tone investigation found that Shein used a series of problematic procedures to ensure he could produce clothes faster and cheaper than the competition – tactics that leave thousands of Chinese workers vulnerable to exploitation.
Does Shein force child labor?
Despite users flooding comments on videos of Shein’s rumors, the company says it “never engages in child or forced labor.” procurement of products through internal inspectors who are …
Does Zara use Uyghur?
BORDEAUX: The expansion of the Zara clothing trade in France has been blocked due to an investigation into whether its parent company Inditex benefits from the use of Uighur forced labor in China, officials said Monday.
Does Zara use Xinjiang cotton?
Zara’s parent company Inditex said in an earlier statement that it has a ‘zero tolerance approach’ to forced labor of any kind. The Spanish company also confirmed that it has no commercial relations with any factory in Xinjiang.
What brands use Uighur cotton?
These brands are still associated with Uighur forced labor. Help stop them now.
- Fila. LL Bean. …
- Brioni. Levi’s. …
- Almost all the world’s clothing brands are also involved in the use of cotton originating from East Turkestan (Xinjiang) occupied by the Chinese. …
- This cotton is then exported worldwide.
Does Zara still use forced labor?
“If and when we are notified, we will fully cooperate with the investigation to confirm that there is no forced labor in our supply chains,” the company said in a statement.
Why are Chinese solar panels so cheap?
Andy explained to me, “China’s huge success in cheap solar energy comes from two things. First, no other country or region can match China’s single supply chain. Secondly, China has built huge solar production capacities that no one else can match. ”
Are Chinese solar panels reliable? Just because a solar panel is made in China does not mean that it is of poor quality. Many of Tier 1’s largest manufacturers have built robust production facilities in China because of the cost, but have managed to show experience in producing reliable products for more than a decade.
How much cheaper are Chinese solar panels?
Using industry-confirmed data from the first half of 2012, they estimated SMEs at $ 1.19 per watt for U.S. solar panels, compared to $ 0.91 per watt for Chinese solar panels, a 23 percent price advantage for the manufacturer. from China.
How much do Chinese solar panels cost?
As of May 2022, the average price of solar panels in China, ME is 2.74 USD / W. Given the size of the 5 kilowatt (kW) solar panel system, the average solar installation in China, ME ranges in cost from $ 11,645 to $ 15,755, with the average gross price for solar energy in China, ME being $ 13,700.
Which country has the cheapest solar panels?
India is now the forerunner in the production of solar energy at the lowest price in the world and is far ahead of other countries in low average production costs, the report said. By beating countries like China, which is usually the cheapest producer of everything, India, among others, left behind the USA, the UK, Canada and France.
Why are Chinese solar panels cheaper?
Andy explained to me, “China’s huge success in cheap solar energy comes from two things. First, no other country or region can match China’s single supply chain. Secondly, China has built a huge solar production capacity that no one else can match
How much do Chinese solar panels cost?
As of May 2022, the average price of solar panels in China, ME is 2.74 USD / W. Given the size of the 5 kilowatt (kW) solar panel system, the average solar installation in China, ME ranges in cost from $ 11,645 to $ 15,755, with the average gross price for solar energy in China, ME being $ 13,700.
Why are Chinese solar panels cheaper?
In other words, China has made solar panels cheap coal, subsidies, and ‘slave’ labor, not efficiency.
Is Chinese solar panel Good?
As you can see, Chinese brands dominate the list of the most valuable solar panel brands. Each of these companies is large and has gained a reputation for excellent production quality.
Are solar panels cheap in China?
Chinese companies are leading the world in low solar energy prices. The flood of cheap Chinese panels has accelerated the installation of solar projects around the world, but low prices have also driven several American and European solar energy producers out of business.
Which country has the cheapest solar panels?
India is now the forerunner in the production of solar energy at the lowest price in the world and is far ahead of other countries in low average production costs, the report said. By beating countries like China, which is usually the cheapest producer of everything, India, among others, left behind the USA, the UK, Canada and France.
Which country makes the best solar panels?
China takes gold So it’s no wonder some of the best – and some of the worst – solar panels are made there.
Why are solar panels cheaper in China?
But when they examined country-specific factors for this price difference, they found that China’s historical advantage of cheap labor was opposed to other regional influences, and that the dominant reason for its success was primarily the volume of solar panel production in the region. , accessed …
What is the cheapest solar panel in world?
Solarland panels are the cheapest overall. Their most popular low-cost model is the Solarland SLP020-24U Silver Poly 24 Volt solar panel, which is commonly used to power traffic lights and other small offline uses.