An international solar power tariff dispute is slowing Maine’s efforts to ramp up the sector

A world dispute over tariffs on photo voltaic panels is casting uncertainty over the nation’s rising solar energy sector, and it is slowing Maine’s aggressive efforts to ramp up renewable power sources.

The U.S. Division of Commerce is investigating whether or not tariffs are violated when photo voltaic modules utilizing elements from China are assembled in nations similar to Cambodia earlier than cargo to the U.S.

If that’s the case, heavy penalties on photo voltaic merchandise might be imposed retroactively to the day (final month) the investigation began. Builders in Maine are placing main initiatives on maintain, perhaps for good.

“It is simply going to make the initiatives unworkable,” stated Robert Cleaves of BNRG Dirigo. He anticipated to begin work this yr on photo voltaic initiatives in Eddington and Augusta price $50 million. However they’re in danger now, he stated, as a result of if imposed penalties as excessive as $200% may add tens of thousands and thousands of {dollars} to the fee. Below a contract with the state, the vegetation would ship electrical energy for two.9 cents per kilowatt hour — a fraction of the present going price.

“It could not come at a worse time not just for builders but in addition for Mainers going through price shock on account of growing pure fuel costs,” Cleaves stated.

An nationwide business survey finds that initiatives in danger in Maine alone characterize 220 megawatts of capability — greater than what was put in right here within the document yr of 2021. Nationally greater than 50,000 megawatts of deliberate capability could also be in danger. Solar energy advocates say President Biden ought to step in or danger his personal local weather agenda.