The Other Side of the Coin
As we've written before, the case has divided the solar industry, because low panel prices have been a boon for solar installers and developers.
Their concern is that tariffs will raise prices and stunt industry growth, saying free global competition is good for American workers and end-users of the technology.
It's widely acknowledged that Chinese manufacturers will be able to avoid paying the tariff by buying solar cells and wafers in Taiwan and assembling them there - a boon to those manufacturers..
"Today SolarWorld received one of its biggest subsidies yet - an average 31% tax on its competitors. What's worse, it will ultimately come right out of the paychecks of American solar workers. This decision will increase solar electricity prices in the U.S. precisely at the moment solar power is becoming competitive with fossil fuel generated electricity and the artificial tax will undermine the success of the U.S. solar industry," says Jigar Shah, President of the Coalition for Affordable Solar Energy, which formed to oppose the SolarWorld-led complaint.
Gigamom argues, "The impact will not likely be as significant for two reasons: any price increase will be absorbed along the way by everyone from manufacturers to installers, and the growing competition in the retail solar market will keep the cost to consumers in check."
"Certainly, profits will shrink if costs increase. But that doesn't mean retail service providers will raise their prices or raise by a whole lot. They will likely absorb the added costs and still make good money, especially by increasing sales volumes (the solar market is hardly saturated). We are not talking about razor-thin margins that will be rendered non-existent by the tariffs," adds Ucilia Wang for Gigamom.
She notes solar panels aren't the biggest cost of a solar system. They account for about 20%, while the majority is from other components, sales and marketing, permits and labor.
China's response is that this action is damages cooperation on clean energy between the two countries, and insists the lower costs are due technological research.
China is "strongly dissatisfied" with the "unfair" US judgment, says Shen Danyang, a spokesman for China's Commerce Ministry. It shows America's inclination toward protectionism and urges the US Commerce Department to rescind the action.
Although he didn't mention any countermeasures China might take, there's been talk of retaliation by placing tariffs on US polysilicon imports into China.
"The solar industry calls upon the U.S. and Chinese governments to immediately work together towards a mutually-satisfactory resolution of the growing trade conflict within the solar industry," says Rhone Resch, President of the Solar Energy Industries Association (SEIA).
"While trade remedy proceedings are basic principles of the rules-based global trading system, so too are collaboration and negotiations," he adds.
The solar industry isn't alone is asking for tariffs. The US has placed punitive duties for unfairly low prices on steel pipe, pencils, electric blankets and bedspring imports from China, and is investigating imports of stainless steel sinks.
Earlier this week, Senators Charles Schumer (D-NY) and Sherrod Brown (D-OH) introduced legislation that would allow only US-made solar panels to qualify for the 30% solar tax credit individuals and businesses receive when they install solar systems. That's another way to deal with this situation, but it will never pass the inevitable GOP filibuster.
