Recent discussions at the University of Texas Renewable Energy Law conference underscored a clear federal priority: control, knowledge, and oversight of supply chains—particularly in the energy sector—are no longer optional.
While much of the national conversation focuses on large-scale projects in the Southwest or Midwest, these issues are increasingly relevant for developers, owners, lenders, and investors in Maine and across New England, especially as the region continues to expand solar, battery storage, and other clean energy projects tied to real estate development.
Why Chinese Manufacture Matters for Local Projects
Many New England energy projects rely on globally sourced components, particularly solar panels and related electronics. A significant portion of the solar supply chain—historically including polysilicon, wafers, and modules—has involved Chinese manufacturing or Chinese-linked inputs.
At the federal level, this creates meaningful legal and financial risk due to the Uyghur Forced Labor Prevention Act (UFLPA). The UFLPA establishes a rebuttable presumption that goods mined, produced, or manufactured in China’s Xinjiang Uyghur Autonomous Region (XUAR) are made with forced labor and are therefore prohibited from entering the United States unless importers can meet a demanding evidentiary standard.
This means that even a project located squarely in Maine or New Hampshire may face risk if its components are tied to restricted regions or suppliers.
Customs Detentions and Project Delays
One of the most tangible risks discussed at the conference was detention by U.S. Customs and Border Protection (CBP). CBP has detained shipments of solar modules and other electronics while importers attempt to demonstrate compliance with UFLPA requirements.
For New England projects, these detentions can have outsized consequences:
- Construction delays that disrupt seasonal build windows
- Financing complications, including missed milestones or draw schedules
- Increased carrying costs for real estate tied to energy infrastructure
- Pressure on developers to source replacement materials on short notice
Even when goods are ultimately released, the delay alone can affect project economics.
Tariff Uncertainty and Cost Allocation
In addition to forced labor enforcement, conference participants highlighted ongoing tariff uncertainty at the federal level. Changes in tariffs or the reimposition of duties raise a fundamental question in energy and real estate deals: who bears the cost?
For Maine and New England stakeholders, this question often plays out in contracts between:
- Developers and EPC contractors
- Owners and suppliers
- Borrowers and lenders
- Investors and project sponsors
Without careful drafting, unexpected tariff costs or supply disruptions can fall into gray areas—creating disputes and threatening deal viability.
Increased Focus on Risk Allocation
As a result of these uncertainties, lenders and investors are paying closer attention to how supply-chain risk is allocated in project documents. Conference discussions emphasized several tools that are becoming more common:
- Enhanced representations and warranties regarding supply-chain compliance
- Indemnities tied to forced labor enforcement or import detentions
- Contingency reserves to address delays or increased costs
- Termination or substitution rights if components cannot be imported
For projects in New England, where margins may already be tight due to land, permitting, or interconnection costs, these provisions can be critical to keeping deals financeable.
What This Means for Maine and New England Energy Development
The takeaway for regional developers, property owners, and investors is straightforward: global supply-chain risk is now a local issue.
Even small or mid-sized projects should be evaluated not only for traditional real estate and permitting risks, but also for:
- Traceability of energy components
- Contractual flexibility if supply chains change
- Alignment between developers, lenders, and investors on risk tolerance
Early legal and strategic planning can help avoid surprises later—particularly when federal enforcement priorities continue to evolve.
Looking Ahead
Uncertainty is likely to remain a defining feature of the energy sector for the foreseeable future. For Maine and New England projects, success increasingly depends on proactive risk management, informed contracting, and a clear understanding of how federal policy intersects with local development.
Staying ahead of these issues allows projects to move forward with greater confidence in this rapidly changing regulatory landscape.
Suzanne Breselor Lowell is a shareholder and seasoned real estate attorney who represents developers, landlords, tenants, buyers, and sellers in complex commercial and large-scale residential transactions throughout New England and beyond. Drawing on her background in corporate law and real estate brokerage, she guides clients through every stage of a deal—from site selection and title clearance to financing and closing—with a practical, business-minded approach. Suzanne has particular experience supporting renewable energy and other infrastructure projects, and is known for her collaborative style, meticulous attention to detail, and focus on helping clients achieve their broader business objectives. She can be reached at [email protected].