If you’re a solar manufacturer in the US, recent news of punitive tariffs against Chinese solar PV producers is probably welcomed.
Numerous solar companies in China have been accused of artificially lowering their prices in order to flood the market and drive American manufacturers out of business. Last week, the U.S. Commerce Department prescribed a number of preliminary tariffs on Chinese solar imports, ranging from 31% all the way up to 249%.
But what does a potential trade war with China mean if you’re in the market for solar installer jobs?
It seems that the consensus is fairly split – even in places like California, Florida, and New Jersey – three states that are about as far from China as one can be.
Bad News for Solar Installer Jobs in Florida?
First the bad news. Tariffs of any kind (just or unjust) raise prices. For stateside solar manufacturers, this is obviously a good thing. A level playing field is…well….fairer.
But for consumers, higher prices are usually bad. As solar panel prices increase as a result of this tariff, there will inevitably be a decrease in demand for solar installations. This lower demand potentially translates to fewer projects for solar installers, and thus, fewer job opportunities for those who secure solar PV training and certification.
That’s the bad news.
Good News for Florida Solar Installer Jobs?
While there aren’t many direct benefits to higher solar prices, there are a number of indirect benefits and a few mitigating factors that help to dampen the impact of these higher prices.
Let’s look at a couple of indirect benefits.
Indirect Benefits of Chinese Solar Tariffs
For starters, solar energy is more in the public eye than it was before. Countless people across Florida are slowly becoming better versed in renewable energy, solar technology, and sustainability as a direct result of this very public and heated debate.
In the long run this is definitely a positive. A better-informed public reduces the amount of time you (the installer) must educate people about the benefits of solar energy. It will take some time, but solar will increasingly become demystified and more mainstream as a result of additional press coverage.
Next, the tariffs could indeed weave more competition into the market. Whereas higher prices are almost always bad for the consumer, having more players in the game is usually a major plus. With American and Chinese manufacturers competing on a “level” playing field, there is the potential for more innovation, more discoveries, and more break-through technologies… on both sides. Again, in the long run, this is a great thing for all of us.
Lastly, if our American solar manufacturers become more competitive, this means more American jobs. This leads to more spending, growth, and consumption. Again, a good thing in the long run. Wouldn’t you prefer that solar companies here in the States were able to contribute to GDP and falling unemployment?
Now let’s turn to a few important mitigating factors that could lessen the impact of potentially higher solar prices as a result of these tariffs.
Mitigating Factors
Solar prices worldwide are on the decline. According to Brendan Winitana, Chairman of the Sustainable Energy Association, installing solar photovoltaic panels has become almost 50% cheaper over the past year and a half.
When you weigh this drop in prices against the potential rise in prices as a result of these tariffs, the net result is still cheaper solar technology. That’s a major plus, whether you’re a consumer or a solar PV installer.
In addition, electricity prices are on the rise. Different states are on different timetables, but for the most part, monthly utility bills continue to increase across the country.
Why is this significant?
Because when grid utility prices go up and solar photovoltaic prices go down, solar becomes increasingly attractive. This explains why solar PV jobs increased by 7% in the past year while the national average for other jobs hovered around 0.7%.
The trend is inevitable. We are moving towards a solar-powered future. These tariffs merely slow down the process a bit.
If you’re in the market for a solar job – whether you live in Florida or anywhere else in the world – now is as good a time as any to secure your installation training and become certified.
Let us know if you’d like US Solar Institute to help you get started.
