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Federal Circuit Hears Solar Industry Challenge to Commerce Department

The U.S. Court of Appeals for the Federal Circuit issued a nonprecedential order in *Auxin Solar Inc. v. United States*, a trade case involving major solar companies challenging Department of Commerce and Customs and Border Protection enforcement actions. The case includes industry giants like Canadian Solar, JA Solar, and Trina Solar as parties.

AI-generated Summary
4 min readcourtlistener
Seal of the Federal Circuit Court of Appeals

Case Information

Case No.:
25-2120

Key Takeaways

  • Federal Circuit issued nonprecedential order in major solar industry trade case involving Auxin Solar and Concept Clean Energy against Commerce Department
  • Case includes coalition of major solar manufacturers including Canadian Solar, JA Solar, Trina Solar, and JinkoSolar as defendants-appellants
  • Trade associations American Clean Power Association and Solar Energy Industries Association joined proceedings
  • Case originated in U.S. Court of International Trade before reaching Federal Circuit on appeal
  • Nonprecedential designation means ruling resolves specific dispute but won't serve as binding precedent

The U.S. Court of Appeals for the Federal Circuit issued a nonprecedential order in *Auxin Solar Inc. v. United States*, a complex trade dispute that pits major solar industry players against federal trade enforcement agencies. The case, filed as No. 25-2120, represents one of the most significant challenges to U.S. solar trade policy in recent years.

The plaintiffs-appellees, Auxin Solar Inc. and Concept Clean Energy Inc., initially brought their case against the United States, the Department of Commerce, Secretary of Commerce Howard Lutnick, U.S. Customs and Border Protection, and Commissioner of U.S. Customs and Border Protection Rodney S. Scott. The case originated in the U.S. Court of International Trade under Judge Timothy M. Reif before reaching the Federal Circuit on appeal.

A coalition of major solar industry participants joined the proceedings as defendants-appellants, creating an unusual alignment where industry players found themselves on opposing sides of federal trade enforcement. The list of solar companies involved reads like a who's who of the global solar manufacturing sector, including Canadian Solar (USA) Inc., Canadian Solar International Limited, JA Solar USA Inc., and multiple JA Solar subsidiaries across Vietnam, Malaysia, and other international jurisdictions.

Trina Solar's extensive presence in the case is particularly notable, with Trina Solar (U.S.) Inc., Trina Solar (Vietnam) Science & Technology Co. Ltd., Trina Solar Energy Development Co. Ltd., and Trina Solar Science & Technology (Thailand) Ltd. all named as parties. This multi-jurisdictional involvement reflects the complex global supply chains that characterize modern solar manufacturing.

The case also includes Jinko Solar entities, one of the world's largest solar panel manufacturers. Multiple Jinko Solar subsidiaries are named, including JinkoSolar (U.S.) Industries Inc., JinkoSolar (U.S.) Inc., and various international operations spanning Malaysia, Vietnam, and the Middle East. JinkoSolar Holding Co. Ltd. and JinkoSolar Investment Ltd. (formerly JinkoSolar Technology Ltd.) round out the company's representation.

Other significant industry participants include NextEra Energy Inc., a major U.S. renewable energy developer, and BYD entities including BYD (H.K.) Co. Ltd. and BYD America LLC. Invenergy, through Invenergy Renewables LLC and Invenergy Solar Equipment Management LLC, also appears in the proceedings. Additional manufacturers Risen Solar Technology Sdn. Bhd. and Boviet Solar entities complete the extensive list of industry participants.

Two major trade associations joined the case: the American Clean Power Association and the Solar Energy Industries Association. Their participation underscores the broader industry implications of whatever trade enforcement actions prompted this litigation.

The Federal Circuit's designation of this order as "nonprecedential" means the decision will not serve as binding precedent for future cases, though it resolves the specific dispute between these parties. This classification is common for Federal Circuit decisions that address fact-specific trade disputes rather than establishing new legal principles.

Trade cases involving solar equipment typically center on antidumping duties, countervailing duties, or circumvention investigations that can significantly impact solar panel pricing and availability in the U.S. market. The Department of Commerce regularly investigates whether foreign solar manufacturers are selling products below fair market value or receiving unfair government subsidies, while Customs and Border Protection enforces resulting trade restrictions.

The solar industry has faced ongoing trade tensions for over a decade, with various investigations targeting Chinese manufacturers and their operations in Southeast Asian countries. These enforcement actions often create complex compliance challenges for solar companies with international manufacturing footprints, while potentially affecting solar deployment costs and timelines in the United States.

The involvement of both domestic solar developers like NextEra Energy and Invenergy, alongside foreign manufacturers, illustrates how trade enforcement actions can create competing interests within the renewable energy sector. Some companies may benefit from trade protections that limit foreign competition, while others may prefer unrestricted access to lower-cost imported equipment.

While the specific details of the Federal Circuit's ruling remain limited in the available documentation, the case's resolution removes one source of uncertainty for the solar companies involved. However, the nonprecedential nature of the order means similar disputes could arise in future trade enforcement actions.

The case reflects ongoing challenges in balancing domestic manufacturing protection with renewable energy deployment goals. As the Biden administration has emphasized both solar energy expansion and domestic manufacturing through initiatives like the Inflation Reduction Act, trade enforcement remains a critical intersection of energy and industrial policy.

The Federal Circuit's jurisdiction over trade cases ensures specialized review of complex international commerce disputes that affect major economic sectors like renewable energy.

Topics

solar energyinternational tradecustomscommercefederal appeals

Original Source: courtlistener

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