Over 3GW of US-based PV projects could be at risk due to fallout from the US Department of Commerce’s (DoC) rulings on anti-subsidy and anti-dumping cases regarding Chinese modules, according to a new report from NPD Solarbuzz.
The owners of these plants, which contain Chinese-made modules and components, will need to find new suppliers or face the scenario of paying a much higher rate for those modules.
While large ground-mounted systems have been popular in the US due to their economy of scale savings, their future could be cloudy as a result of these new trade rulings.
Michael Barker, senior analyst at NPD Solarbuzz, said: “Large-scale ground-mount PV installations are particularly vulnerable to cost increases and potential disruption, as many have signed power purchase agreements at aggressive rates. Any increase in cost for the projects could mean renegotiation, delay, or even termination.”
Despite the announcement, the total market demand and size of the US-based PV project portfolio continues to remain strong at the moment. The pipeline is now quickly reaching 50GW of commercial and utility projects.
Christine Beadle, analyst at NPD Solarbuzz, said: “Solar PV is rapidly becoming more cost-effective, as a power generation source. Project developers are swiftly adapting to new market dynamics and are driving strong growth, especially in community and carport systems, but this growth may be interrupted if any external factors increase prices significantly.”
The DoC’s rulings, which were announced at the end of July, were made in order to stop Chinese manufacturers from evading duties by utilising cells built oversees. Under the latest duties, Taiwanese cell manufacturers Gintech will face 27.59%, Motech 44.18% and the rest of Taiwan 35.89%