Solar sector is reacting positively to positive news out this week from the Biden Administration
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Stephen Derkash, manager of the Solar Energy UCITS ETF (TANN) comments:
“Biden confirmed plans to waive tariffs on solar imports from Southeast Asia for two years. This is very positive for solar companies that export to the US as many use production facilities in SE Asia. This measure will relieve fears of significantly higher costs and low supply, as U.S. solar manufacturing continues to lag behind Asia.
The other measure announced intends to boost US Solar manufacturing capabilities. President Biden has authorized the US Department of Energy (DOE) to use the Defense Production Act (DPA) – Cold War-era legislation designed to incentivize the domestic manufacture of strategically important goods – to accelerate the production of five clean energy technologies, including PV modules and module components.
The statement noted that while the US’ domestic solar manufacturing output is expected to treble to 22.5GW by 2024, expansion need to occur more swiftly. President Biden’s Build Back Better Act, which includes the proposed Solar Energy Manufacturing for America Act, itself a suite of tax credit incentives for domestic solar manufacturing, remains blocked. The White House has also moved to stimulate demand for domestically-made PV panels by “putting the full power of federal procurement to work”, introducing master supply agreements for PV systems made in the US and adding so-called ‘Super Preferences’ for domestic content for federal procurement contracts.”
Source: ETFWorld.co.uk
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