- The U.S. International Trade Commission recommends tariffs on imported solar panels of as much as 35%, lower than requested by the trade case bought by bankrupt Suniva and relieving worries from other U.S. solar companies that the recommended tariffs would be higher.
- “That’s below the price that people have been hoarding panels for,” says Cowen analyst Jeffrey Osborne. “On the demand side, job cuts won’t be as bad as feared, but on the manufacturing side, job creation won’t be as big. This would have a limited effect."
- Imported solar panels for large solar farms are forecast to remain ~$0.32/watt in the U.S. next year, excluding the impact of tariffs, and a 30%-35% tariff would tack on $0.10-$0.11, putting modules at the same cost developers were paying in September 2016 and significantly less than developers had feared, says Bloomberg analyst Nathan Serota.
- The ITC will send its proposals to Pres. Trump, who faces a January deadline to make a final decision.
- Among relevant tickers: FSLR -10.8%, SPWR -1.1%, CSIQ -0.1%, JKS -1%, CAFD -1%, SOL -2%, RUN -0.5%, VSLR +1.3%, TERP +2.3%, SEDG +0.7%, ENPH +2.2%.
- ETFs: TAN, KWT
Original article