If you live in the USA, your Solar Panels just got more expensive.
Jennifer Runyon is chief editor of RenewableEnergyWorld.com and Renewable Energy World magazine, coordinating, writing and/or editing columns, features, news stories and blogs for the publications. She also serves as conference chair of Renewable Energy World Conference and Expo, North America. She holds a Master’s Degree in English Education from Boston University and a BA in English from the University of Virginia.
This article content was originally published on RenewableEnergyWorld.com
This is too important NOT to pass on:
Yesterday the U.S. Department of Commerce announced its final findings in the 3-year long trade war between the U.S. and China. Additional tariffs will be imposed on modules from China and Taiwan. Although this is good news for SolarWorld and other American solar PV manufacturers, many in the U.S. solar industry are not celebrating and the decision is expected to further divide an already shaken solar industry.
Specifically, Commerce determined that imports of certain crystalline silicon PV products from China have been sold in the U.S. at dumping margins ranging from 26.71 percent to 165.04 percent and that imports of certain crystalline silicon PV products from Taiwan have been sold in the U.S. at dumping margins ranging from 11.45 percent to 27.55 percent. Finally, Commerce determined that imports of certain crystalline silicon PV products from China have received countervailable subsidies ranging from 27.64 percent to 49.79 percent. Named in the suit, Trina Solar (TSL) and Renesola (SOL)/Jinko (JKS) received final dumping margins of 26.71 percent and 78.42 percent, respectively. Commerce also found that 43 other exporters qualified for a separate rate of 52.13 percent (PDF of fact sheet here lists all 43 exporters beginning on page 7.)
The China-wide entity received a whopping final dumping margin of 165.04 percent — this is for companies that did not cooperate with the investigation.
In the Taiwan AD (anti-dumping) investigation, mandatory respondents Gintech and Motech received final dumping margins of 27.55 percent and 11.45 percent, respectively. All other producers/exporters in Taiwan received a final dumping margin of 19.50 percent.
In the CVD (countervailing duty) investigation, Commerce calculated a final subsidy rate of 49.79 percent for mandatory respondent Trina Solar. Mandatory respondent Suntech and five of its affiliates (see final subsidy rates chart at the bottom of this article) received a final subsidy rate of 27.64 percent. All other producers/exporters in China have been assigned a final subsidy rate of 38.72 percent.
Next, U.S. Department of Commerce will investigate if the dumping injured U.S. manufacturing. If injury is found to have occurred, the tariffs will stay. If no injury is determined, the investigation will be terminated. That decision will be made on or about January 29, 2015. However, U.S. Customs and Border Protection will immediately begin to collect cash deposits equal to the applicable weighted-average dumping margins. If injury is not found, the money collected will be refunded.
The solar petitioner in the case, SolarWorld (SRWRF), applauded the decision. The company said that by comprehensively addressing the unfair trade practices of China and Taiwan, Commerce has paved the way for expansion of solar manufacturing in U.S. market. Makesh Dulani, U.S. President of SolarWorld Americas believes the tariffs set the stage for companies to create new jobs and build or expand factories in the U.S. Last month, SolarWorld announced that it was expanding its Oregon factory and adding about 200 jobs.
Rhone Resch, president and CEO of the Solar Energy Industries Association (SEIA), said the ruling is “ill-advised” and feels that it will harm many and benefit few. “We remain steadfast in our opposition because of the adverse impact punitive tariffs will have on the future progress of America’s solar energy industry. It’s time to end this costly dispute, and we’ll continue to do our part to help find a win-win solution,” he said.
The Coalition for Affordable Solar Energy (CASE) thinks the decision will raise prices and kill jobs and believes the decision is in direct opposition to the pledges recently made by the U.S. and China to work together to curb global warming. “Hundreds of megawatts of solar projects remain unrealized due to deleterious solar trade barriers in the U.S., China, Europe and globally. Eliminating taxes in cleantech trade represents the lowest-hanging fruit in the global fight against climate change,” said Jigar Shah, President of CASM.
All of this contention comes at the heels of a recent announcement that the U.S. solar industry is on track to install 41 percent more solar in Q4 2014 than it did in 2013. In total, the U.S. is expected to install 6.5 gigawatts of solar in 2014, a 36 percent increase over last year.
If you’re planning Solar Panel Power Options… you need to keep an eye on this.