The Minister of Trade, Industry, and Competition has formally requested the International Trade Administration Commission of South Africa (ITAC) to investigate the possibility of introducing a rebate program for imported solar panels as the country grapples with an ongoing energy crisis.
ITAC Weighs Multiple Factors in Decision-Making
In response to the Minister’s request, ITAC has conducted a thorough evaluation of the application, considering various critical factors. These include the imperative to protect the domestic manufacturing industry, which has faced reduced investments due to high production costs and fierce competition from more affordable imported panels.
Currently, only ARTsolar and Seraphim remain as active domestic manufacturers of solar panels within the SACU region, as several others have ceased production.
Minister’s Approval of Tariff Increase on PV Modules Influences Deliberations
The Commission’s discussions were also shaped by the Minister’s preliminary endorsement of ITAC’s recommendation to raise customs duties on crystalline silicon photovoltaic modules or panels.
This action is intended to shield local production while ensuring a consistent supply of essential components necessary for South Africa’s energy expansion endeavors.
Recognizing potential shortages in the domestic market, ITAC has put forth a proposal for a temporary rebate provision on the importation of photovoltaic cells, assembled modules, or panel components. This measure aims to mitigate supply risks and bolster ongoing efforts to tackle the country’s electricity challenges.
Conditions and Guidelines for Rebate Provision to Ensure Fair Use
The rebate provision, subject to specific conditions and guidelines, aims to prevent misuse and ensure effective administration.
ITAC will issue permits based on defined quantities and under specified conditions, designed to maintain market stability while allowing flexibility in importation.
Balancing Local Industry Protection and Energy Infrastructure Development
This initiative underscores South Africa’s dedication to striking a balance between safeguarding local industry and the necessity for robust energy infrastructure development, a critical aspect of addressing the current electricity crisis.