In the announcement, the White House said the tax exemption applies to imported solar panels from Vietnam, Cambodia, Malaysia and Thailand.
With this decision, the US can secure a sufficient supply of parts to meet power generation needs while domestic solar power production increases. President Biden also activated the Defense Production Act (DPA) to boost US solar panel production.
The White House emphasized that clean energy technologies now play an important part in reducing energy costs for homes, reducing risks to the electricity supply in the United States. The country aims to triple the amount of solar electricity produced in the country by 2024, from 7.5 gigawatts to 22.5 gigawatts, enough to power 3.3 million households in the country each year.
Under the administration of President Donald Trump, DPA has also been activated during the COVID-19 pandemic to increase the production of drugs and medical equipment in the US.
Before that, this law was also activated during the Second World War.