While quite many US-based PV developers have inquired cooperation opportunities with Taiwanese suppliers, the Taiwanese solar cell and PV module maker United Renewable Energy (URE) has not considered investment in US production due to many uncertainties, according to company chairman Sam Hong.
As US IRA (Inflation Reduction Act) offers 30% investment tax credit to encourage establishment of PV power-generating facilities plus subsidies for manufacturing of various PV products, many US-based PV developers are seeking cooperation with Taiwan-based solar cell and PV module makers.
IRA is estimated to increase US domestic demand for solar energy by 30-50% and most of the increased demand is most likely to be met by Southeast Asia-based PV module makers, Hong said. Most of these makers were established or invested by China-based PV makers in a bid to avoid US anti-dumping and countervailing tariffs imposed on China-made PV products, Hong noted. US-based PV makers have accused these makers of circumventing anti-dumping and countervailing tariffs by using China-made solar cells and PV components, but the US government has exempted these makers from anti-circumvention taxes for two years, Hong indicated.
Global demand for solar energy is on the rise mainly due to growing awareness of carbon reduction, Hong said. For PV makers, it is not difficult to set up factories but there exist many uncertainties because the business environment is characterized by unpredictable quick and/or large changes in government policy, Hong noted. For example, the US and EU used to quickly change anti-dumping measures against China-produced solar cells and PV modules as well as many countries quickly cut or canceled subsidization of PV power purchases, Hong said.
As amortization of cost for PV manufacturing equipment takes about five years, sharp changes in business environment are likely to turn equipment from assets to operational burdens during the period, Hong indicated.
As China-based makers' total PV module production capacity in China and Southeast Asia takes up about 85% of global total, PV makers based in other countries, no matter how they plan integrated production, are difficult to get rid of competition from China-based makers, Hong said.
URE has extended business operation from production of solar cells and PV modules to investment in setting up and operating PV power-generating facilities in Taiwan and overseas locations including the US, Hong noted. Despite IRA, URE does not plan to add investment in PV power generation in the US, Hong indicated.
URE currently has annual production of 1,200MWp for G1-, M6- and M10-size solar cells and PV modules and plans to set up a M10-size solar cell and PV module production line. Besides, URE has set up factories in the Philippines and Thailand and plans to expand production capacities there.
URE has reported consolidated revenues of NT$1.921 billion (US$61.0 million) for September, increasing 24.42% on month and 55.61% on year, those of NT$4.746 billion for the third quarter, growing 21.62% on quarter and 35.46% on year, those of NT$13.331 billion for January-September, rising 30.98% on year.
