A coalition of leading US solar panel manufacturers has filed a formal petition urging the US commerce department to impose tariffs on solar imports from India, Indonesia, and Laos.The group alleges that producers in these countries are flooding the American market with artificially low-priced solar panels, harming the domestic solar manufacturing industry.According to a Reuters report, the petition, submitted on Thursday by the Alliance for American Solar Manufacturing and Trade, includes major industry players such as First Solar, Qcells (Hanwha’s solar division), Talon PV, and Mission Solar. The alliance claims companies in the three countries are selling solar products below production costs and are benefiting from unfair government subsidies.According to the petitioners, Chinese-owned manufacturers have shifted operations to Indonesia and Laos to circumvent existing US tariffs on imports from other Southeast Asian countries. Indian manufacturers are also accused of dumping low-cost panels into the US market.The group highlighted a dramatic rise in solar imports from India, Indonesia, and Laos — jumping from $289 million in 2022 to $1.6 billion in 2023. The surge has raised concerns among US solar producers about the impact on recent investments aimed at boosting domestic solar manufacturing.“We have always said, vigorous enforcement of our trade laws is critical to the success of this industry,” said Tim Brightbill, lead attorney for the petitioners.

US solar manufacturing and inflation reduction act

While the majority of solar panels installed in the US are still imported, American manufacturing capacity has expanded significantly since the passage of the Inflation Reduction Act (IRA) in 2022. The law provides tax credits to boost domestic clean energy production and reduce dependence on Chinese-made solar panels.The US now has around 50 gigawatts of solar panel production capacity, up from 7 GW in 2020. However, demand continues to outpace supply, with installations expected to reach nearly 43 GW annually through 2030, according to the Solar Energy Industries Association (SEIA).

Next steps: Commerce department review

The US department of commerce has 20 days to decide whether to launch an investigation into the alleged dumping and subsidy practices. If it proceeds, the case could lead to new tariffs within a year, depending on the outcome of the investigation.