NextEra Energy, the world's largest generator of clean energy, said it has secured its supply chain to mitigate against the threat of new tariffs on imported solar modules.
Kirk Crews, NextEra's chief financial officer, said in an earnings call with investors on April 25 that nearly all of the company's suppliers have repositioned to manufacture solar panels in Southeast Asia using wafers and cells produced outside of China.
Crews said all of NextEra's suppliers should meet the criteria established in the Commerce Department's preliminary determination in the Auxin Solar investigation by the end of 2023.
"Additionally, we are focused on further diversifying our supply chain and are currently advancing discussions to support the domestic production of solar panels," Crews said during the call, which recapped NextEra's first-quarter financial performance.
GO DEEPER: Solar market analyst Paula Mints joined Episode 29 of the Factor This! podcast to break down everything from the Auxin Solar petition to the Inflation Reduction Act and to discuss the industry’s path forward amid mounting headwinds. The episode is available wherever you get your podcasts.
The Commerce Department was expected to issue a final ruling in the Auxin Solar tariff investigation on May 1, but has extended the deadline to August 17. A preliminary determination released by the agency in December found that some Chinese manufacturers are using Southeast Asia as a conduit to skirt U.S. trade duties.
President Joe Biden has paused new solar tariffs until June 2024, and while a bipartisan congressional effort aims to undo the moratorium, Biden reportedly plans to veto the legislation, should it pass.
Crews said he is "encouraged" by the increased flow of solar panels into the U.S. as Customs and Border Protection enforce the Uyghur Forced Labor Prevention Act (UFLPA).
The UFLPA has tied up gigawatts of solar panels as CBP investigates whether they were produced using forced labor in the Xinjiang region of China.
According to CBP data, only five shipments of "electronics" totaling $3 million in value have been denied so far this year. CBP defines electronics as solar products, information technology, integrated circuits, automated data processing equipment, and consumer electronics.
Renewable Energy World has asked CBP to break down what portion of the shipments is made up of solar components.
