Weekly Solar Industry Insights: May 12–18, 2025

US-China Tariff Truce Offers Limited Relief for Solar Sector

The US and China have temporarily suspended 24% tariffs under Section 301 for 90 days, easing trade tensions. However, a 10% base tariff and an average 83% anti-dumping duty remain, keeping Chinese solar PV exports to the US under nearly 200% total tariffs. While both sides agreed to ongoing dialogue, core restrictions persist, prompting Chinese firms to pivot towards emerging markets and relocate capacity to Southeast Asia.

Proposed U.S. Budget Cuts Threaten Clean Energy Progress

A new U.S. House budget proposal aims to phase out key clean energy tax credits established under the Inflation Reduction Act, including the 48E and 45Y credits, and end the residential solar credit by 2025. Industry leaders warn these cuts could derail $115 billion in clean energy investments and jeopardize millions of jobs, urging lawmakers to maintain stable policy support.

Wafer Makers in ME & SE Asia Expand Despite Price Drop

Wafer manufacturers in the Middle East and Southeast Asia are expanding capacity even as prices hit record lows. Mono PERC and N-type wafer prices fell up to 6.6% due to weak downstream demand. While integrated players reduce utilization rates, specialized producers maintain higher outputs, aiming to strengthen their global supply chain presence amid market pressure.

U.S. Rule Changes May Disrupt Solar Supply Chains

Proposed changes to the U.S. Foreign Entities of Concern (FEOC) rules could disqualify solar projects linked to countries like China from receiving tax credits. The stricter definitions and disclosure requirements aim to tighten control over clean energy incentives, potentially disrupting global solar supply chains and impacting project viability in the U.S. market.

Clear Skies Spark Solar Boom in Northwestern Europe

A strong high-pressure system over the North Atlantic brought unusually clear skies to northwestern Europe in May 2025, boosting solar irradiance by up to 35% above average in regions like the UK, Netherlands, and Germany. This surge created ideal conditions for solar power generation, while southern Europe faced cloudier, stormier weather that limited solar output.

Information Source: PV Magazine