What a US-China Solar War Means for Your Installation Career
A number of US solar manufacturing companies have brought suit against China for its “allegedly” illegal trade practices. In a nutshell, these companies accuse China of underpricing its solar products to secure a global monopoly as other companies bow out of the PV manufacturing game.
SolarWorld is leading this charge and wants punitive tariffs slapped onto solar panels entering the US from China.
Are Solar Tariffs Just? If So, Are They Good for You?
As a solar installer, how should you feel about a potential trade war with China?
On the one hand, you probably feel sympathetic to SolarWorld’s cause. If the allegations are indeed true, China is purposely destroying solar manufacturing jobs in the US. Of course you want to protect domestic jobs and create a level playing field.
On the other hand, China’s cheaper solar panels make installing the technology cheaper for homeowners and businesses.
Already, solar energy prices have halved since 2008 – thanks to increased global competition. With China placing artificial downward pressure, prices will continue to fall even more. Just imagine how much easier your own job becomes if clients have to pay less and less to install solar panels.
If SolarWorld and its supporters succeed in slapping on tariffs, this could indeed protect US manufacturing jobs. But these jobs, though incredibly important, account for only 3% of the 100,000 solar jobs in the country. The majority of US solar jobs are in installation and maintenance – the very sectors that benefit most from cheaper panels – regardless of the source.
The solar industry continues to enjoy phenomenal growth – nearly 7% over the past year, compared to 0.7% for the overall economy. Last year alone, 7,000 new solar jobs emerged despite rising unemployment in most other sectors.
But according to the Brattle Group, enacting protective tariffs could destroy more than 30,000 solar jobs in 2012, and nearly 50,000 by 2014. And these figures don’t include the 24,000 new solar jobs that would likely materialize within the next year, in the absence of tariffs.
What Are Your Thoughts about This Solar War?
Whether you’re a seasoned solar veteran or a student in the midst of receiving solar PV installation training, how do you feel…how “should” you feel about a potential US-China trade war?
Share your comments down below. We’d love to hear your thoughts.