By Avi Salzman

American solar manufacturers won a major victory in a tariff case announced late on Monday, and some of the stocks were jumping Tuesday.

First Solar, the largest U.S. manufacturer, surged about 13% in early trading Tuesday. T1 Energy, a smaller company that recently opened a solar factory in Texas, was up 8.7%. Maxeon Solar Technologies, another small manufacturer, was up 4%. Hanwha, a Korean company that makes solar modules in the U.S., was up 1%.

Not all companies involved in solar power will benefit. American utilities that have been importing foreign-made modules will have to pay more for their equipment.

After an investigation that began during the Biden presidency, the Commerce Department found that China has been subsidizing companies in Cambodia, Malaysia, Thailand, and Vietnam. And the department said those companies have "dumped" solar equipment in the United States, artificially depressing prices and hurting U.S. manufacturers. As a result, the Commerce Department and the U.S. International Trade Commission (USITC), with its approval, will jointly administer duties on those companies.

The amount of the tariffs varies by country and company, but they look likely to be high enough to make American solar equipment cost-competitive. The average expected tariff on Cambodian solar modules is over 600%, for instance.

First Solar sells its solar film for more than 30 cents per watt. In China, some manufacturers have been selling modules for about 10 cents per watt.

The International Trade Commission, a separate agency, has until June 2 to decide on these tariffs. The levies would likely go into effect in June.

China is by far the largest supplier of solar equipment in the world. The U.S. was once dominant in solar, but its industry atrophied over the past 15 years amid intensifying competition. More recently, the Inflation Reduction Act has helped spur a renaissance in U.S. solar manufacturing, with more than a dozen solar module factories opening around the country, and two factories making solar cells -- the building blocks of panels. Tim Brightbill, a lawyer representing the American Alliance for Solar Manufacturing, called the ruling a "decisive victory" that will allow the American solar industry to bounce back.

It's the first good news for the solar industry in a while, and could help lift the stocks out of their funk. First Solar is down 22% this year, because President Donald Trump and a Republican Congress may cut the Inflation Reduction Act's tax credits for renewables.

Write to Avi Salzman at avi.salzman@barrons.com

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April 22, 2025 10:58 ET (14:58 GMT)

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