US Solar reacts to the Solar World vs China Trade War
Please mark the date – June 4th 2014 a day that live in solar industry infamy. The day that a single company, that is not even a US company in the first place, pushed the entire United States Solar Industry backwards two to three years.
Gone are the days (or at least anytime in the next several years) when low cost solar panels will pave the way for 20% growth in the clean solar energy industry in the US. Oh how we will look back on the good ol days when quality Chinese made solar panels could be purchased for under $70 cents a watt.
That is because Solar World ruined it for everyone. Solar World acting as the sole defendant in a landmark international economic decision, forced the Department of Commerce to raise tariffs – again on imported solar panels. A move that is certain to raise the price of solar panels as much as 40%.
I wonder if Big Coal, Gas and Diesel are drinking champagne and smoking big cigars right now? One can almost smell the global carbon dioxide gasses increasing to record levels yet again tonight. Somewhere a polar bear is swimming for an ice cap that continues shrink and melt while the salt water table rises another millimeter in Miami.
In a single very disturbing decision, the U.S. Department of Commerce today imposed new tariffs on solar modules from China that threaten to derail the entire solar industry. What will happen to the 20% + annual rapid growth of the U.S. solar industry now?
The Department of Commerce will impose countervailing duty tariffs immediately by charging from 18.56 to 35.21 percent duties on all Chinese owned solar panel manufactures. Equally astonishing, the Department of Commerce issued a wide scope preliminary decision despite multiple US based industries crying out to stop the case. The Department indicated that it will continue to review comments on this issue.
These tariffs will cause an immediate increase in the price of solar panels across the country. US Solar consumers will face overall installed cost increases from 10 to 30 percent more for the same product their neighbor purchased last year or the year before.
The case is certain to slow the adoption of solar within the United States. In state like Florida where solar is still a nacient industry it is likely to stall the industry by years. What is most disturbing is the fact these tariffs may never provide any benefit to the sole petitioner Solar World – the German Company that started this senseless fight in the first place.
It’s time to end this needless litigation with a negotiated solution that addresses Solar World’s trade allegations while ensuring the continued growth of the U.S. solar market.
Over the past few months, SEIA has facilitated settlement discussions between Chinese solar manufacturers and Solar World. The goal of these discussions is to develop an industry recommendation to help jump-start government-to-government negotiations. Although SEIA succeeded in establishing direct communications between the parties — and are working with all segments of the industry to find a sensible solution — The US Solar industry is quickly running out of time.
As an industry, we need to get serious about resolving this ongoing dispute, before irreparable damage is done. All along we strongly urged all parties to set aside their grievances; redouble efforts to find a solution that benefits all segments of the industry; and end this potentially costly and divisive conflict.
Too late.
As stated again and again every step of this walk into the darkness a settlement to this costly, ongoing trade dispute must come with compromise and open discussions – not in a court room. How pathetically ironic that the court room is not speaking English in the first place. They are speaking German and Chinese about a case that effects America.
While many solar hopefuls in South Florida are heading off to the local government funded solar conference, US Solar reacts to the Solar World vs China Trade War with sadness. This week at the Broward County Go Solar Fest 2014 US Solar Institute will be asking all attendees to sign a petition asking people to boycott Solar World, demand them to stop, drop the case and for everyone to join FARE to help bring Real World common sense to a Solar World gone way off track.