The World's #1 Renewable Energy Network for News, Information, and Companies.
Untitled Document

More Tariffs for Chinese Solar Panel Manufacturers

Yesterday the U.S. Department of Commerce announced that it would impose preliminary countervailing duties (CVD) on Chinese-manufactured solar modules in an effort to close the loophole that was created when it imposed initial tariffs on Chinese-manufactured solar cells back in 2012.

In 2012, the DOC started imposing tariffs on Chinese-made cells and ingots. In an effort to avoid the tariffs, the manufacturers reportedly moved cell manufacturing to Taiwan but continued to manufacture modules in China. These new duties will now be imposed on modules. 

The International Trade Administration released the chart below showing how much the duties will be for which manufactures.  In all they range from 18 to 30 percent.

Preliminary Findings

Though the findings are preliminary, the DOC will immediately begin collecting the duties until the final determination is made. Commerce is expected to announce a final determination on or near August 18, 2014. Following that announcement, the ITC will make its final determination on or near October 3, 2014. If both are affirmative, the CVD will stick. If either one is negative, no CVD order will be issued.

The sole petitioner in the trade case is SolarWorld who alleges that the Chinese government unfairly supports its solar manufacturers, creating an unfair playing field for the global solar marketplace. 

The U.S. solar energy industries association (SEIA) reacted negatively to the news, calling it “damaging” and stating that the tariffs will slow the adoption of solar in the U.S. by raising the cost of solar for American consumers and businesses. SEIA president Rhone Resch further slammed the petitioner. “Ironically, the tariffs may provide little to no direct benefit to the sole petitioner SolarWorld, as we saw in the 2012 investigations,” he said.

SEIA said that it has been trying to facilitate conversations between SolarWorld and Chinese solar manufacturers for some time in an effort to “jump-start” government to government negotiations but that “we’re quickly running out of time.”

It's time to get serious about resolving this ongoing dispute, before irreparable damage is done to the U.S. solar industry," said Resch.

China Reacts

Not surprisingly, China is not happy about the news. The Chinese solar PV industry released a statement indicating that it was “dissatisfied” with the findings.  An official said on the Chinese Commerce Ministry’s website that “[the ruling] won’t solve the problems of the U.S. solar industry.”

The duty imposed on Wuxi Suntech is “completely unfair” as the panel maker doesn’t receive subsidies from the Chinese government, Chief Executive Officer Eric Luo told Bloomberg today. While Suntech shares U.S. concerns over price declines in the industry, trade disputes are contributing to the greater problem of overall “industry instability,” Luo said in an e-mailed statement.

Trina Solar said that the allegations are “unfounded” and told Bloomberg that it “welcomes any opportunity to continue a constructive approach to a dialogue.”

“The tariff would not only hurt Chinese manufacturers, but also hamper the competitiveness” of solar power in the U.S. as the cost of power generation will rise, Sebastian Liu, investor relations director with JinkoSolar Holding Co., the best-performing Chinese solar manufacturer in the past year, said in a phone interview with Bloomberg today. The company is discussing the situation with its lawyers, he said.

The U.S. is separately investigating allegations that Chinese and Taiwanese producers dumped solar products below cost. Its preliminary ruling is expected on July 25, according to Bloomberg BNA.

RenewableEnergyWorld.com has plans to speak with international trade relations expert John Smirnow of SEIA about this issue later this month during PV America.  Stay tuned for updates as they unfold.

Lead image: Made in China on Blackboard via Shutterstock.

Untitled Document

RELATED ARTICLES

Stolen Solar Panels and Sabotage A Challenge for Powering India With Renewable Energy

Anindya Upadhyay, Bloomberg Disappointment spread across Tarun Singh’s face when he saw that parts of his solar power microgrid in eastern India’...

States Already Seek To Delay Clean Power Plan

Andrew Harris, Bloomberg Fifteen states led by coal-rich West Virginia asked a federal court to stall Obama administration rules intended to c...

Suntech Parent Company Buys Majority Share of US-based Suniva

Ehren Goossens Shunfeng International Clean Energy Ltd., the Hong Kong-based solar company controlled by billionaire Zheng Jianming,...

Sunrise in Pakistan as the Country Delves into Solar PV

Robert Harker Pakistan has joined the list of countries that are exploring solar power as a means to bridge critical energy generat...

PRESS RELEASES

Array Technologies’ DuraTrack HZ v3 Continues to (R)evolutionize at SPI

Array Technologies, Inc. (ATI) prepares to showcase its recently launched tracking syst...

Appalachian's Energy Center assists counties with landfill gas to energy projects

The Appalachian Energy Center at Appalachian State University recently completed a proj...

Early Bird Registration Deadline for GRC Annual Meeting is This Week

The deadline for early-bird rates for registration for the biggest annual geothermal ev...

Redesigned HydroWorld.com Video Gallery

Hydropower news and information, and interesting promotional announcements are now avai...

FEATURED BLOGS

Transitioning to Net-Zero Living

Judith and Jeffrey adore living in Belfast, Maine – a quaint harbor town of Belfast, Maine. They previously res...

The True Cost of Electric Vehicles in Australia

In order to avoid increased congestion, further greenhouse warming and lessen Australia’s reliance on imported ...

The Coming Multi-trillion Dollar Energy Investment Drive

In coming years, a multi-trillion dollar low-emission energy investment drive will get underway. Three catalysts wil...

The Perfect Elevator Pitch

The elevator pitch is a concise statement that grabs attention and communicates value, ideally leading to a next step...

FINANCIAL NEWS

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 ...

CURRENT MAGAZINE ISSUE

Volume 18, Issue 4
1507REW_C11

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

SOCIAL ACTIVITY

Tweet the Editors! @jennrunyon

FEATURED PARTNERS



EVENTS

Intersolar North America 2016

Exhibition: July 12 - 14, 2016; Conference: July 11 - 13, 2016 Intersola...

Intersolar South America 2015

Exhibition and Conference: September 1-3, 2015 Intersolar South America ...

Intersolar Europe 2016

Exhibition: June 22-24, 2016; Conference: June 21-22, 2016 Intersolar Eu...

COMPANY BLOGS

The Proof Is Not Always In The Pudding

One of the best ways to turn a skeptical prospect into a buyer is to giv...

Pushing Beyond The Cushion

Efficiency projects are all too often viewed as “optional” o...

Less Is More

When you’re giving a presentation, one of the easiest things to do...

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS