NextEra Energy Inc.’s top boss, John Ketchum, on April 21 voiced frustration over a U.S. trade probe that may force his company to delay a chunk of its solar and storage build to 2023 from 2022 due to a hit to panel supplies from Asia.
The U.S. Department of Commerce (DoC) in late March launched a probe that could result in retroactive tariffs of 50%-250% on solar panels imported from four Southeast Asian nations that account for about 80% of panel imports into the United States.
The decision was a blow to clean energy project developers like NextEra, the world’s largest renewable energy company, that rely on cheap imports to keep costs down.
Exasperated while talking about the probe on an earnings call, Ketchum rhetorically asked analysts how the administration could “possibly pull the rug out from under the industry,” slamming his hands on his desk with every word.
NextEra expects about 2.1 to 2.8 gigawatts (GW) of its solar and storage build to shift from 2022 to 2023 as the solar sector grapples with price uncertainty and scrambles for alternative supplies.
The company expects final tariff amounts to remain unknown until the first quarter of 2025, assuming U.S. trade officials conclude their probe by 2023.
NextEra’s shares fell 4.3% in afternoon trade, while stocks of solar equipment makers were down between 2% and 10%.
The Juno Beach, Florida-based firm posted a quarterly net loss of $451 million, or 23 cents per share, compared with a year-ago profit of $1.67 billion, or 84 cents per share.
Its losses were driven by soaring natural gas prices that forced its unit to take a $1.77 billion loss on some hedges, along with a $600 million after-tax write-off on the long-delayed Mountain Valley Pipeline investment.
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