Challenges in U.S. Solar Manufacturing

The U.S. solar manufacturing sector faces significant challenges due to recent trade restrictions and import tariffs on solar cells from Southeast Asian countries. Tariffs on suppliers from Cambodia, Malaysia, Thailand, and Vietnam, which have escalated since the Inflation Reduction Act, are contributing to increased production costs and supply chain disruptions. With a rise in imports of solar cells by 70% in 2024, these tariffs could severely limit the availability of essential components needed for domestic production. Consequently, while the module production capacity in the U.S. has increased to around 40 gigawatts, there remains a tighter supply of cells, necessitating imports from non-restricted countries like India and South Korea to maintain market stability.