BANGKOK: According to experts, South Asian solar panels could benefit from huge planned US tariffs that the country might implement to accelerate its own long-stalled energy transition.
Washington made plans earlier this month to impose significant taxes on solar modules produced in Vietnam, Thailand, and Malaysia.
The charges come in response to an investigation into “unfair techniques” in the nations, especially by Chinese-based companies, that was launched before US President Donald Trump took business.
If approved second month, they may bolster taxes previously imposed by the Trump administration, including blanket 10-percent charges for the majority of nations and 145 percentage on Chinese-made products.
The effects are likely to be significant for the US market. China controls 80 % of every step of the manufacturing process and produces eight out of every ten solar panels worldwide.
According to Putra Adhiguna, managing chairman at the Energy Shift Institute think tank, the new tariffs” will almost make renewable exports to the US difficult commercially.”
In 2024, Southeast Asia accounted for nearly 80 % of US solar panel goods.
And despite rising investment in renewable power in recent years, the business still relies heavily on imported parts.
The ship of tariffs could be very bad news for Taiwanese manufacturers who are already dealing with a saturated local market.
In an effort to protect and advance the nation’s thermal companies, many businesses relocated to Southeast Asia in an effort to avoid punitive measures taken by Washington and the European Union.
The suggested new jobs range from about 40 % for some Malay exports to an eye-watering 3 521 percentage for some companies with bases in Cambodia.
Taxes “accelerate” the change
However, according to Ben McCarron, managing chairman of Asia Research &, Engagement, there may be a bright spot for the area.
He claimed that the energy transition in Southeast Asia is likely to be accelerated by the trade and tariff battle.
China will” recharge efforts” in local markets and advocate for policies and implementation plans that “enable quick adoption of green energy across the region,” fueled by its exporters.
Analysts have long warned that developing nations are transitioning to slowly from coal-based fossil fuels due to climate change.
It ( Southeast Asia ) runs the risk of missing out on the opportunities offered by the declining costs of wind and solar, which are now less expensive than fossil fuels, according to energy think tank Ember in a report last year.
Last month, Malaysia produced more than 80 % of its energy using fossil fuels, for instance.
By 2030, it wants to make 24 percent of renewable energy, a goal that has been criticized as out of action with international climate goals.
According to Muyi Yang, older power analyst at Ember, the price regime offers the region a double advantage.
He told AFP that the native solar industry has been “largely greedy, focused on embracing local resources or labor advantages for export gains” thus far.
It could rather concentrate on local energy transitions, accelerating local clean energy adoption, and creating a fresh market that” could serve as a normal hedge against outside volatility.”
Given its size and the region’s somewhat emerging state of renewable energy, replacing the US business will not be simple.
Success depends on transforming this export-driven velocity into a homegrown tech revolution, Yang said.
Countries in the region and above may be cautious about a storm of solar, Adhiguna said, although” certification prices” may be appealing to some.
Major international markets like Indonesia and India now have policies in place to promote renewable energy domestically.
Some people will hesitate to import a lot, with a focus on the trade balance and aims to create native green jobs, he said.
