Taiwan makers can tolerate 15-20% US anti-dumping rates for PV modules

As the US Department of Commerce will decide on preliminary anti-dumping tariffs on PV products imported from China and Taiwan on July 24, Taiwan-based PV module makers using in-house-produced solar cells can tolerate rates of 15-20% to maintain price competitiveness in the US market, according to industry sources.

But for PV module makers using outside-supplied solar cells, tolerable rates will be lower at 5-8% due to higher production costs, the sources said.

Arising from the imposition of preliminary anti-dumping rates, PV module makers outside of China and Taiwan are expected to hike US market quotes to the level of US$0.9/W, the sources noted. Since Taiwan-based PV module makers quote about US$0.75/W in the US market currently, tolerable tariffs are estimated at 15-20%, the sources explained.

Chairman Sam Hong for the Taiwan Photovoltaic Industry Association (TPVIA) indicated that if tariffs are above 20%, some Taiwan-based makers are expected to produce PV modules at overseas factories specifically for export to the US.

July 22, 2014

Source: digitimes