With Trump back in the White House, there has been a new focus on anti-dumping and countervailing duties (AD/CVD) due to his America First Trade Policy. This policy shift affects various imports, including solar PV modules and cells coming from countries in Southeast Asia, such as Vietnam, Cambodia, Malaysia, and Thailand.
For instance, companies like Vietnam’s Boviet saw their duty hike from 54.46% to 60.02%, while Jinko’s rose from 56.4% to 71.74%. The resulting higher PV prices in the US market have weakened demand for their products, leading to reduced imports.
How Are the AD/CVD Affecting the US PV Market?
These duties were meant to boost local PV modules and cell production, but this takes time to come online. So as it stands right now, domestic production isn’t enough to meet demand, meaning the US still relies on imports. Therefore, these imports will likely come from new manufacturers in other Asian countries or Malaysia, which has been hit by lower tariffs. Additionally, the higher prices from these duties can create supply shortages or slow down the demand for solar.
How About the Energy Storage Market?
Solar PV goes hand-in-hand with batteries because these store the generated energy and stabilize the grid as more renewable energy comes online. But this isn’t the case market-wise. While the PV market demand is expected to slow, the energy storage segment is growing steadily in the US with California and Texas leading in adoption.
Favorable government policies, such as the IRA (Inflation Reduction Act), boost energy storage systems installations by providing subsidies. These subsidies also apply to PVs, but their future is not guaranteed. If they are weakened, the demand for solar PV will reduce further while investments in energy storage solutions will drop.
Do These Policy Shifts Impact Global Demand?
Despite these challenges in the US market, the demand for solar and energy storage solutions globally is on the rise, especially in emerging economies in the Middle East, India, Africa, and Southeast Asia. This growth is driven by both the private sector and government-tendered projects. So even if policy changes hurt demand in the US, these countries combined create a huge alternative market to offset shrinking American sales.
What About Wiring Harnesses for Solar and Energy Storage Solutions?
Solar PV and energy storage solutions need wiring harnesses for power transmission and signaling. They are complementary products that must be there for the green energy solution to work, so they follow the demand for the other two. As such, demand for these harnesses might reduce in the US but increase in the emerging regions listed above.
Some of the most notable names in solar PV and energy storage solutions wiring harness manufacturing include Nexans, Furukawa Electric, Sumitomo, and Yazaki. If you’re in this industry, we recommend custom cable assemblies for your solutions to ensure optimal performance and longevity.
Final Thoughts
A lot is changing in the solar PV, energy storage, and green energy industry, particularly in the US. But one thing is certain: people and governments want to go green to save the environment. So whether government policies favor or disfavor uptake, the market will find a way to adjust to fill the gap. Cable assemblies are a big part of this mix, so this industry is expected to grow at almost similar figures in both the US and global markets.