Solar Subsidies Expected To Feature In Trump-Xi Meeting

U.S. solar installers, along with insurance companies and banks, have stopped purchasing panels from China-invested manufacturing facilities in the United States because of uncertainty over whether those products qualify for federal subsidies. The pause follows a Reuters report published on May 8 that highlighted questions about eligibility under rules enacted last year.

Those rules, which received support from the Trump administration, reduced overall subsidies for residential solar installations and barred support for any systems using panels from factories more than 25 percent owned by Chinese companies. The restrictions have created hesitation among installers even for products assembled inside the United States at facilities with Chinese investment.

JinkoSolar has agreed to sell 75.1 percent of its solar manufacturing plant in Florida to FH Capital, an American private equity company. The transaction was announced on the same day as the Reuters report. A statement from FH Capital said the deal establishes a domestic solar and battery energy storage platform.

The move appears intended to bring the factory's ownership structure below the 25 percent Chinese ownership threshold set by the subsidy legislation.

Protectionist measures affecting Chinese products, including solar equipment made both in China and at Chinese-invested U.S. The subsidy eligibility issue for domestically produced panels with Chinese ties forms one element of the broader trade conversation.

Sunrun, a major residential solar installer, has stopped buying panels from U.S. plants linked to Chinese companies, according to the Reuters report. The uncertainty has affected business relationships across the solar supply chain inside the United States.