Will Tariffs Hurt Thailand's solar industry?Solar manufacturers in Southeast Asia’s second-largest economy that rely heavily on Chinese components are now facing nearly 400% tariffs to export their products to the US. Analysts say the tariffs threaten to hurt Thailand’s manufacturing sector and its workers, and could have a knock-on impact on solar rollout in the country.
Why is Thailand's solar industry being squeezed?Large Chinese companies dominate Thailand’s solar manufacturing industry, which produces solar cells and panels for export to the US market. But as Washington erects trade barriers to protect its homegrown solar sector from a rising tide of cheap Chinese imports, Thailand’s industry is being squeezed.
How did Chinese solar panels avoid tariffs?Companies Were Avoiding Tariffs The U.S. had already imposed taxes on Chinese solar panel makers when they sold products to American buyers. To avoid those tariffs, the companies began using factories in Southeast Asia. However, the same Chinese companies own or control many of those factories.
Can Thailand produce solar wafers?“Thailand has more than six million tonnes of solar-grade quartz reserves that could be used to produce polysilicon – the key ingredient to produce solar wafers,” said Phipatana-Phuttapanta, the government’s solar expert. Although developing the resources would require “technical expertise and high investment”, she added.
What percentage of Thailand's electricity comes from solar?Thailand is dependent on gas for electricity generation but the government has set out plans for 51% of its electricity to come from renewables by 2037, with most of the additional renewable power expected from solar. Only around 3% of Thailand’s electricity currently comes from solar.
Why did the US impose new tariffs on solar panels?On April 21, 2025, the U.S. Department of Commerce finalized new tariffs on solar panels and components imported from Malaysia, Thailand, Cambodia, and Vietnam. The decision stems from findings that certain Chinese companies circumvent existing tariffs using factories in these countri
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While many associate solar energy with sunny deserts, the Northwest''s climate, characterized by cooler, cloudier seasons, affects solar exposure. However, innovative
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Solar manufacturers in Southeast Asia’s second-largest economy that rely heavily on Chinese components are now facing nearly 400% tariffs to export their products to the US. Analysts say the tariffs threaten to hurt Thailand’s manufacturing sector and its workers, and could have a knock-on impact on solar rollout in the country.
Large Chinese companies dominate Thailand’s solar manufacturing industry, which produces solar cells and panels for export to the US market. But as Washington erects trade barriers to protect its homegrown solar sector from a rising tide of cheap Chinese imports, Thailand’s industry is being squeezed.
Companies Were Avoiding Tariffs The U.S. had already imposed taxes on Chinese solar panel makers when they sold products to American buyers. To avoid those tariffs, the companies began using factories in Southeast Asia. However, the same Chinese companies own or control many of those factories.
“Thailand has more than six million tonnes of solar-grade quartz reserves that could be used to produce polysilicon – the key ingredient to produce solar wafers,” said Phipatana-Phuttapanta, the government’s solar expert. Although developing the resources would require “technical expertise and high investment”, she added.
Thailand is dependent on gas for electricity generation but the government has set out plans for 51% of its electricity to come from renewables by 2037, with most of the additional renewable power expected from solar. Only around 3% of Thailand’s electricity currently comes from solar.
On April 21, 2025, the U.S. Department of Commerce finalized new tariffs on solar panels and components imported from Malaysia, Thailand, Cambodia, and Vietnam. The decision stems from findings that certain Chinese companies circumvent existing tariffs using factories in these countries.
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