Biden Set To Announce Executive Order To Revive Stalled Solar Projects In US: Report

President Joe Biden is reportedly considering an executive order to break the stalemate that was hindering domestic installation of solar panels.

What Happened: Biden is planning to invoke the "Defense Production Act" to resolve a trade dispute that will revive stalled solar projects and kickstart domestic manufacturing of solar panels, Bloomberg reported, citing people familiar with the matter.

An announcement to this effect will be made as early as Monday, the report said. This will help the U.S. to reduce its reliance on other countries for the same.

The stalemate was due to a trade investigation by the U.S. Commerce Department over whether some Chinese companies are avoiding tariffs by assembling solar cells and modules in Cambodia, Malaysia, Thailand and Vietnam. This prompted some overseas exporters to halt or slow solar panel sales to the U.S.

Related Link: Is Tesla Testing New Solar Roof Panels?

The Defense Production Act gives the president, primarily through executive order, power to direct private companies to prioritize federal government orders. Among the other provisions are the advancement of loans or loan guarantees to companies by the government and authorization of companies to coordinate, which otherwise attract antitrust concerns.

Biden will also reportedly announce a two-year halt in new solar tariffs for solar panels from the four Southeast Asian countries. This will allow domestic projects to continue using equipment made overseas until domestic manufacturing ramps up.

Why It's Important: The proposed measures will likely help tackle climate change, while also offering a boost to domestic manufacturing, Bloomberg said.

The two-year tariff freeze will likely help the U.S. solar industry return to rapid deployment and the Defense Production Act will help domestic solar manufacturing, Bloomberg said, citing Abigail Ross Hopper, chief executive officer of Solar Energy Industries Association.

Photo: Created with an image from jlhervàs on Flickr