Norwegian firm in S'pore seeks exemption from US solar tariffs

Singapore

THE largest cleantech player in Singapore has submitted a request to be excluded from the United States' tariffs on solar panel imports.

Norwegian solar-energy firm REC Group, which operates one of the world's largest factories for solar cells and panels in Tuas, is one of the few companies here directly affected by the tariffs.

US President Donald Trump in January announced a 30 per cent import duty on foreign-made solar panels.

The decision comes after the independent US International Trade Commission determined that imports of solar panels had hurt American companies.

The tariff covers both imported solar cells, a key input to manufacturing solar panels, as well as solar modules, otherwise known as solar panels. The levy will last for four years and will fall by 5 per cent annually, dropping to a 15 per cent tariff in 2021.

Experts have expressed concerns that the tariffs will raise the cost of solar power and its deployment; much of the US solar industry, including manufacturers and installers, opposed tariffs.

In response to queries from The Business Times, a spokesman for REC said the company has submitted requests to the Office of the United States Trade Representative (USTR) for its "TwinPeak" solar panels to be exempt from tariffs.

"These products have unique performance attributes that are highly prized by our US customers, many of whom are actively supporting REC's request to the USTR," said the spokesman.

"REC Group will continue to collaborate with all related authorities inside and outside the US on the product exemption process, including USTR and the government of Singapore."

REC entered Singapore in a big way in 2008; it had picked Singapore as the location for its integrated solar-production facility from a list of around 200 possible locations.

In addition to its key manufacturing plant, Oslo-headquartered REC also does research and development work in Singapore, where it employs more than 2,000 staff.

A spokesman from the Ministry of Trade and Industry (MTI) said the ministry has been "engaging affected companies in Singapore and the relevant US departments on the impact of the tariffs".

"Discussions with the US are ongoing and we look forward to a positive outcome. We will continue to monitor developments.

"As a small economy dependent on trade, Singapore's interest is to maintain an open and rules-based global trading order. This will help bring about economic growth and more job opportunities for Singaporeans."

Professor Armin Aberle, chief executive of the National University of Singapore's Solar Energy Research Institute of Singapore, said the impact of the tariffs on REC is "quite significant", noting that the levies will make it tougher for the company to compete in the US.

"Apart from REC, I think the impact on the other Singapore solar companies is rather small, as they operate in different segments of the solar value chain," he said.

Prof Aberle said the US makes up about 10 per cent of the global solar market. About 80 per cent of its panels are imported, mainly from China.