Calgary, Alberta (June 14, 2022) — Enverus Intelligence Research, a subsidiary of Enverus, the leading global energy data analytics and SaaS technology company, has released a report evaluating the impact of the Biden administration’s strategy to invoke the Defense Production Act to maintain solar adoption in the U.S. The act is being used to freeze tariffs for two years in four Southeast Asian countries — Thailand, Malaysia, Cambodia and Vietnam — currently under investigation by the U.S. Department of Commerce. The investigation is focused on whether the countries are being used as “pass through” entities for China to circumvent tariffs. If violations have taken place, solar modules from these countries could see tariffs ranging from 50% to 250%.
“Two years of status quo solar investment sounds good on paper, but unless investment in U.S. manufacturing manifests, we’re just kicking the can down the road, said Adam Jordan, lead report author and managing director of Enverus Intelligence Research. “Tariffs have little to do with underlying supply chain issues, which have been constraining solar installation since before the Department of Commerce investigation started in April.”
Key takeaways from the report:
Enverus Intelligence Research analysis shows waiving tariffs for two years will have a minimal impact to increases U.S. solar production.
Supply chain pressure will only increase as the tariff reprieve creates a spike in demand for photovoltaic (PV) components.
Shifting U.S. political landscapes in 2024 (next presidential election) might create more unwanted uncertainty in those companies that would otherwise invest in the country’s manufacturing.
Enverus Intelligence Research can quantify how much capacity is under investigation across several companies. Members of the media should contact Jon Haubert to schedule an interview with one of the company’s expert analysts.
Enverus is the leading energy SaaS company delivering highly-technical insights and predictive/prescriptive analytics that empower customers to make decisions that increase profit. Enverus’ innovative technologies drive production and investment strategies, enable best practices for energy and commodity trading and risk management, and reduce costs through automated processes across critical business functions. Enverus is a strategic partner to more than 6,000 customers in 50 countries. Learn more at Enverus.com.
About Enverus Intelligence Research
Enverus Intelligence Research, Inc. is a subsidiary of Enverus and publishes energy-sector research that focuses on the oil and natural gas industries and broader energy topics including publicly traded and privately held oil, gas, midstream and other energy industry companies, basin studies (including characteristics, activity, infrastructure, etc.), commodity pricing forecasts, global macroeconomics and geopolitical matters. Enverus Intelligence Research, Inc. is registered with the U.S. Securities and Exchange Commission as an investment adviser.
The post US Solar Tariff Reprieve — Is Two Years Enough? first appeared on Enverus.
Read more Go to the Source – US Solar Tariff Reprieve — Is Two Years Enough?