February 21, 2024

Taylor Daily Press

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Biden implements Porsche law to accelerate US energy transition: Solar shares rise

The announcement that the US government is taking steps to increase domestic solar production has stunned many steady investors. For example, stocks in the solar sector rose sharply.

US President Joe Biden has approved the Defense Production Act (DPA) to increase the production of solar energy and many other forms of clean energy in the United States. Earlier, the Democrat leader had already implemented the Porsche Act to address the US shortage of baby milk powder.

In particular, Biden authorized his energy industry to use DPA to increase domestic production of components for equipment such as solar panels, energy efficient heat pumps, electrolyzers and fuel cells.

No new import taxes

At the same time, the ANP said the president had indicated that he would not introduce new import duties on solar power equipment for the next two years. The instruments are manufactured in four Southeast Asian countries: Cambodia, Malaysia, Thailand and Vietnam. This allows domestic developers to use foreign-made equipment while increasing domestic production.

However, taxes on solar energy products from China and Taiwan will continue, the Commerce Ministry said.

Tariffs have come under heavy criticism in recent months as the Ukraine war raises energy prices around the world to record levels. Fees were first established by the Trump administration; Biden announced a four-year extension in February.

Encouragement for solar companies

Shares rose on Monday Sun light, After the announcement, has risen nearly 6 percent. When Enface energy Reported an increase of 5.4 percent CNBCCoincidentally, the latter company recently increased its Three times the investment in EuropeSolar edge technology And Solar power Nearly 3 percent were successful. Sequence technologies Rose about 18 percent.

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“We hope the announcement will be clearly positive for our coverage, especially in the application-level solar market,” he said. CNBC Note to clients by JPMorgan analyst Mark Strauss.

Solar stocks have plummeted since last November, and market sentiment on nonprofit growth firms has deteriorated. However, the sector has seen good growth in recent weeks. Invesco Solar ETF rose more than 27 percent from its lowest level in May and a further 4.4 percent on Monday.

The rise in solar energy stocks in 2020 and 2021 was due to the hope that a democratic government would increase federal support for industry. Fitness’Built Back BetterThe bill, which includes additional clean energy costs, was introduced in Congress last year.

Worried about China

These measures are not welcomed by all solar power companies. For example, First Solar, the U.S. manufacturer of solar panels, said in a statement that the White House is announcing solar power to U.S. manufacturers. Not advisedநிறுவனம் The company said the move would benefit China’s government-subsidized solar power industry.

The U.S. Department of Commerce said in March that it was still concerned about solar panel imports from Thailand, Vietnam, Malaysia and Cambodia. Manufacturers from those countries will use Chinese products; This would violate US anti-dumping rules.