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PrintThe battle over US solar energy has begun. Seven US solar panel makers last week filed a trade action against China charging that the Chinese government granted billions of dollars in subsidies to help its domestic producers. The subsidies allowed the Chinese solar panel makers to dump in the US at prices less than it costs to make and ship them. The US producers want the US government to impose duties of over 100% on the Chinese makers.The problem is that if the trade action is successful, it would drive up panel costs and make solar panels less economic to use, plus it would be contrary to the Obama Administration’s hopes to create a viable alternative energy program. On the other hand, the Obama Administration has given billion of dollars of assistance to aid its solar industry, most of which was misspend on companies like Solyndra.
The trade action has supporters in Congress, especially representatives from states with solar panel makers who believe that China is “stealing” solar energy. The problem is that China already has about three fifths of the solar panel industry and exports about 95% of its production.
The petition was filed by SolarWorld Industries America, the largest US producer of conventional solar panels. The six other companies have not disclosed their names. The other companies fear China will retaliate against them.
Another complicating factor is that not all US companies in the solar area support a trade action. The petitioner, SolarWorld, has specifically requested that certain US companies be excluded from the definition of domestic industry as they are allegedly either related to foreign producers/importers or are themselves importers. These companies are: Evergreen Solar, Suntech Arizona, Motech Americas, and Wainxiang. Many other US companies involved in the solar sector, including Hemlock Semiconductor, sell most of their solar?products to the Chinese. The existing trade group, Solar Energy Industries Assn., is split on the trade action and will not take a stand.
The case now goes to the ITC and the ITA and will remain a political football. “Either you want cheap solar energy or don’t,” one executive said. “China is the lowest cost producer.” Most analysts think China will lose, due in large part being a non-market economy. However, it could be a pyrrhic victory. US consumers will complain about being denied access to cheap alternative energy; China is likely to retaliate; and the Chinese companies will move their solar panel production to the US—a step many are already doing.
The ITC’s initial hearing will probably happen as soon as Nov. 8.
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