China is Not a Problem, But a Help (When It Comes to Our Solar Power Goals)

October 16th, 2011 by Zachary Shahan

Arno Harris of Recurrent Energy has a great post up on National Geographic’s The Greet Energy Challenge that I think anyone interested in clean energy policy should read. Here’s the intro:

Rumors are swirling about the next shoe to drop in the campaign against renewable energy. A handful of struggling solar manufacturers are expected to announce they are joining a petition to the International Trade Commission and the US Department of Commerce (DOC). The petition is expected to allege China unfairly subsidizes solar manufacturers and is ‘dumping’ solar modules on the global market below cost (a view exacerbated by a few high profile solar company bankruptcies I previously wrote about).

A successful petition would be the first step towards imposing tariffs on solar panels imported from China. The announcement is timed to coincide with the start of Solar Power International, the US’s largest solar trade fair taking place next week in Dallas.

Let’s state plainly what’s going on here. A group of manufacturers who can’t compete with today’s solar panel prices are seeking to erect trade barriers to make the US a ‘safe market’ for their own more expensive solar panels. They want to prevent Americans from getting access to low-cost solar panels and low-cost solar electricity so they can sell their own more costly product to them instead.

That’s the gist of it. But Harris goes on to emphasize that we should do everything we can to drive down solar costs (as China is doing) and starting a trade war with China on solar wouldn’t help anyone but those in a few niche solar companies.

As we’ve reported repeatedly on here, the solar energy market is growing tremendously in the U.S. We are a net exporter of solar goods. Why jeopardize that? The industry now provides over 100,000 Americans with jobs (more than the coal industry). Why jeopardize that?

Harris goes on:

This is clearly a tactic in the narrow self-interest of the manufacturers joining the petition. It’s not in the interest of American consumers. It’s not in the interest of ratepayers. It’s not in the interest of our national security. And it’s certainly not in the interest of slowing global climate change.

And, reiterating what I said above about dropping solar costs and what our overall priority should be:

I’ve said it many times, but it’s worth saying again. The best thing we can do is encourage the solar industry to ruthlessly drive down the cost of solar panels. And that’s exactly what the industry has been doing with manufacturing in the US, Europe, China, Malaysia, the Philippines, and beyond. As a result, since 2008 the cost of solar panels has come down by roughly 75% with most of that coming from reductions in silicon commodity costs and manufacturing improvements.

The less solar power costs, the more favorably it compares to conventional power, and the more attractive it becomes to utilities and energy users around the globe. Today’s low cost solar panels are overturning antiquated notions about the limits of solar power and driving a massive wave of new demand for clean solar-generated electricity.

Let’s hope those in power have the sense to not maim a rapidly growing industry that is creating clean, green jobs for more and more Americans.

Photo Credit: Some rights reserved by International Rivers

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Tags: China, china solar energy, solar trade war, us china solar trade war, us china trade war

About the Author

Zachary Shahan spends most of his time here on CleanTechnica as the director/chief editor. Otherwise, he's probably enthusiastically fulfilling his duties as the director/editor of Solar Love, EV Obsession, Planetsave, or Bikocity. Zach is recognized globally as a solar energy, electric car, and wind energy expert. If you would like him to speak at a related conference or event, connect with him via social media. You can connect with Zach on any popular social networking site you like. Links to all of his main social media profiles are on ZacharyShahan.com.

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Joecl

The problem is Chinese PV manufacturers get unfair subsidy from the government.
It needs to be fixed
- Anonymous
  
  That’s highly debatable. And even the U.S. Solar Energy Industry Association (which is the voice of U.S. solar businesses) hasn’t said that.
- Anonymous
  
  I think the point very clearly is that, in order to remain at the top of the world in solar and remain a net exporter to the world and china (which we are today), we need to give solar proper policy support (that es equal to what fossil fuels got at this stage of their development and adjusts for social costs that businesses and individuals don’t factor into prices enough).
- Anonymous
  
  I suspect we need to worry less about Chinese support for solar panel manufacturers.
  
  The price of labor in China has risen. Certainly no where close to that of US labor, but the rise along with the rise in shipping costs have eroded much of the financial advantage of manufacturing panels in China and shipping them here. Labor accounts for no more than 10% of the cost of manufacturing solar panels.
  
  I recently listened to an interview with a manufacturer who is opening a new plant in the US and he felt that he was giving away almost nothing by manufacturing here. Not only the small difference labor costs and shipping costs, but also the ability to be closer to the product. That means not having to maintain company personnel overseas and deal with their travel costs. It also means having a shorter delay between manufacturing and sales, making cash flow issues easier. It means making production changes faster if your R&D people are close to the production lines.
  
  Add to that the fact that much of the equipment used for panel manufacturing and much of the processed silicon comes from the US. (That’s basically where our excess trade balance in solar comes from.) Being closer to the equipment manufacturing and supply sources is an advantage.
  
  GE is opening a very large new thin film plant in Colorado which should be cranking out large quantities of panels in a year or so. They’ve figured out how to do it here.
  
  Fact is, once prices drop a bit more demand is going to soar and a lot of companies spread across a lot of countries are going to be very busy keeping up.
Anumakonda Jagadeesh

Yes. Renewables especially Wind and Solar are advancing in China at rapid speed.

Dr.A.Jagadeesh Nellore(AP),India
E-mail: anumakonda.jagadeesh@gmail.com
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http://pulse.yahoo.com/_NDA7UFIGEKF7FSM6IRJUS4B6CM give chants a chance

I hope China sees the wisdom of sustainable practices. I hope the western world sees the wisdom of long term answers.