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Anonymous CASM Member Goes Public in Solar Case

Steve Leone, Associate Editor, RenewableEnergyWorld.com
March 08, 2012  |  14 Comments

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Helios Solar Works, a small solar panel manufacturer based in Milwaukee, Wisc., said Thursday that it is one of the seven companies that worked to file the original trade complaint against the price of solar panels coming in from China.

Until this week, SolarWorld was the lone public face for the Coalition for Affordable Solar Manufacturing (CASM). The Department of Commerce is expected to announce its preliminary countervailing duty determination as early as March 19 just as the solar industry arrives at PV America-West, a three-day conference and exhibition in San Jose, Calif., that runs March 19-21. The result could impose stiff tariffs on panels coming in from China, and such a move would put severe financial pressure on the rest of the American solar industry that has often benefited from the low-cost panels. It would also make American-made modules more cost-competitive.

The remaining five companies in the seven-member coalition remain anonymous, and there is no requirement that their names ever be made public. However Helios Solar Works decided the timing was right, even as the tariff decision looms and as the rhetoric with the competing Coalition for American Solar Energy (CASE) intensifies.

Helios is a relatively new company to the solar industry, having launched in 2009 before opening up its first production line in February of 2011. In an interview Thursday afternoon, Steve Ostrenga, chief executive officer of Helios Solar Works, said his company really started seeing prices drop during the second quarter of 2011. That drop, he said, sapped much of the momentum out of the company. Helios was running at two shifts and heading toward a third when the bottom fell out, and now the company is down to one shift. As far as employees go, they went from a high of about 50 — and hopes of increasing to at least 75 — down to their current 30 or so employees.

In the midst of this price drop, Ostrenga said he was contacted by the law firm representing CASM. From there, it was an internal decision of whether to sign on to the complaint. Once they decided it was in their best interest to do so, they also determined they would not go public -- at least not right away. While anonymity is usually granted because of a perceived threat of retaliation, Helios held back for different reasons.

“We just do not have the resources [to have gone public],” said Ostrenga. “Our core competency is in making what we believe is the best module in the world. We just felt we’d get a lot of inquiries from the press and other institutions, and we didn’t want our company and our managers focused on those things.”

Since then, they’ve changed their thinking and decided to publicly join SolarWorld.

“Solar World has been getting a lot of pressure, saying it’s just them and that they stand alone,” said Ostrenga. “No. We’re a module manufacturer. We compete in the market place. We make a good module. We’re here in Milwaukee. We employ people.”

Ostrenga said he’s been keenly aware of implications of trade disputes even outside the solar industry, so he knew the solar case had the potential to become a divisive issue.

“We’re positioned here in Wisconsin where 23 percent of our labor base is tied to manufacturing,” he said. “The paper industry is going through a similar situation with China. We understood there’s going to be geopolitical ramifications.”

Image: Man walking into sun via Shutterstock

14 Comments

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Gary Richardson
Gary Richardson
March 14, 2012
@electric38 if you don't find a breakdown on the data you are looking for then there is raw data available for California at this website

http://www.californiasolarstatistics.ca.gov/current_data_files/
Ralph Perez
Ralph Perez
March 14, 2012
Wish there was a breakdown available on what percent of these companies panels are sold to consumers. I care a lot less if a company selling panels to my local utility goes out of business or is crying to Washington to maintain their level of price gouging. If they are selling (or even worse -leasing) to utilities, who are in turn, price gouging the American public, (NV Energy as an example) who cares? If they are selling to "Joe consumer", I care a great deal.
Michael Campbell
Michael Campbell
March 13, 2012
Steve/ Luke- No worries! stuff happens- and this won't go down in your permanent record. The goal must be to balance the trade issues with no impact to the US PV installed base and the EPC Developers building it. Yes, the Chinese have left a lot of money on the table driving prices lower- but that's a byproduct of over capacity and competition more than political strategy.

Meanwhile- I'm looking a 285W Poly utility-grade Astronergy module leaning against the wall in my office with the best efficiency, cost, fit and finish I've ever seen. Now, may we please return our focus on meeting Distributed Power Generation RPS targets in each State? The EPC value chain, O&M and supplier ecosystem will produce far more jobs than spending taxpayer money putting last year's PV pricing under a microscope through a rear view mirror.

RPL and my other firm, Recompense LLC are hosting a full day session on Cap and Trade (CA AB32) at the Ocean Institute in Dana Point Harbor(CA) on March 23rd...you are ALL welcome to join us. for more information: www.reccompense.com

Peace!
Michael
Luke Divemaster
Luke Divemaster
March 13, 2012
oops, it was CASE not CASM. Sorry rapower.
Steve Leone
Steve Leone
March 13, 2012
Thanks for pointing that out RApower. I've made the change to the CASE acronym. For the record, I have written about CASE extensively in the past, with the correct terminology. But my fingers definitely got out ahead of my brain on this one. My bad.
Luke Divemaster
Luke Divemaster
March 13, 2012
http://www.oregonlive.com/business/index.ssf/2011/10/china_blasts_solarworlds_reque.html

This comment by Life Is Funny appeared in oregonlive.com (link above)

For those who advocate in favor of cheap solar panels from China, you would do well to better understand the true cost of low cost.

Take a few minutes to browse through the photographs and descriptions of Chinese industrial pollution in the link below:


www.chinahush.com/2009/10/21/amazing-pictures-pollution-in-china/


I particularly enjoyed the quote from China's Commerce Ministry, "The U.S. has no reason to criticize other countries' efforts to improve the world's environment."

The photographs in the link provided show the true nature of China's improvements to the environment. Further, to those who advocate the weakening of environmental laws in our country, you truly have no idea how bad that can turn out if you've never visited industrial areas in China.

There is always a cost to "cheap", and it is borne by those least able to afford it.
Luke Divemaster
Luke Divemaster
March 13, 2012
The author is correct... CASM, the Coalition for American Solar Manufacturing
Luke Divemaster
Luke Divemaster
March 13, 2012
The author is correct. CASM is the Coalition for American Solar Manufacturing.

This comment appeared in oregonlive.com

For those who advocate in favor of cheap solar panels from China, you would do well to better understand the true cost of low cost.

Take a few minutes to browse through the photographs and descriptions of Chinese industrial pollution in the link below:


www.chinahush.com/2009/10/21/amazing-pictures-pollution-in-china/


I particularly enjoyed the quote from China's Commerce Ministry, "The U.S. has no reason to criticize other countries' efforts to improve the world's environment."

The photographs in the link provided show the true nature of China's improvements to the environment. Further, to those who advocate the weakening of environmental laws in our country, you truly have no idea how bad that can turn out if you've never visited industrial areas in China.

There is always a cost to "cheap", and it is borne by those least able to afford it.

http://www.oregonlive.com/business/index.ssf/2011/10/china_blasts_solarworlds_reque.html
Luke Divemaster
Luke Divemaster
March 13, 2012
The author is correct. CASM is the Coalition for American Solar Manufacturing.

This was written by Life Is Funny in the comment section of oregonlive.com

http://www.oregonlive.com/business/index.ssf/2011/10/china_blasts_solarworlds_reque.html


For those who advocate in favor of cheap solar panels from China, you would do well to better understand the true cost of low cost.

Take a few minutes to browse through the photographs and descriptions of Chinese industrial pollution in the link below:


www.chinahush.com/2009/10/21/amazing-pictures-pollution-in-china/


I particularly enjoyed the quote from China's Commerce Ministry, "The U.S. has no reason to criticize other countries' efforts to improve the world's environment."

The photographs in the link provided show the true nature of China's improvements to the environment. Further, to those who advocate the weakening of environmental laws in our country, you truly have no idea how bad that can turn out if you've never visited industrial areas in China.

There is always a cost to "cheap", and it is borne by those least able to afford it.
Michael Campbell
Michael Campbell
March 13, 2012
For the record: CASE Stands for 'The Coalition for Affordable Solar Energy'. It's difficult to take this author seriously when backgound material was not researched enough to know the name of the primary defender of the bulk of American solar industry and consumers. RA POWER & LIGHT LLC was the 7th firm to stand with CASE and isn't hiding behind the curtain as CASM members appear content to do. American Consumers deserve access to the best technology at the best price- no matter the country of origin.
randy velker
randy velker
March 13, 2012
Good for Helios "coming out." I don't agree with CASM or their complaint, but I applaud Helios for finally stepping up. The quotes from Helios make it clear that SolarWorld and their lawyers are the instigators here and they "shopped around" to find others to be "co-conspiritors" so it didn't look like they were doing it on their own.
Gary Richardson
Gary Richardson
March 12, 2012
Those excess panels will end up on the black market if there is not enough demand. I'd watch for changes in regulations at the local level to see if government tracking becomes more difficult.
Luke Divemaster
Luke Divemaster
March 9, 2012
'Unprofitable' Solar Companies

Jinko's net loss was $58.3 million, or $2.58 an ADR. Each ADR for the Jiangxi, China-based company is worth four ordinary shares.

Canadian Solar's net loss was $59.9 million, or $1.39 a share. The company is based in Kitchener, Canada, and most of its production is in China.

"What we are seeing is optimistic manufacturers continue to expand, but they are unprofitable," Jesse Pichel, an analyst at Jefferies Group Inc. in New York, said in an interview yesterday. "What these companies should be doing is raising prices and taking lower volume, while writing off low end lines or product."

Suntech is seeking to boost margins by cutting expenses. "Driving down production costs is our top priority in 2012," Shi said.

To contact the reporter on this story: Ehren Goossens in New York at egoossens1@bloomberg.net
Luke Divemaster
Luke Divemaster
March 9, 2012
Solar manufacturers expect shipments to increase this year as a global glut drives prices to "unsustainable" levels.

Suntech Power Holdings Co. (STP), the world's largest solar panel company, expects shipments of as much as 2.5 gigawatts this year, up 19 percent from 2.09 gigawatts in 2011, according to a statement today. Canadian Solar Inc. (CSIQ) said yesterday that shipments will increase as much as 51 percent to 2 gigawatts.

Profits won't rise at the same pace because solar-panel prices fell 50 percent last year, squeezing gross margins to 9.9 percent in the fourth quarter at Suntech, from 17 percent a year earlier. Jinko Solar Holding Co. (JKS) reported today gross margin of negative 4.4 percent in the fourth quarter, compared to 29 percent a year earlier.

"The challenge is profitability," Suntech Chief Executive Officer Zhengrong Shi said during a conference call. "Excess capacity in the global industry has pushed the international solar companies to sell at unsustainable pricing levels in an effort generate cash and maintain viability."

The growth in shipments will be driven in part by demand in China, where total installations may more than double to 5 gigawatts this year, Shi said.

Suntech, based in Wuxi, China, posted a net loss of $136.9 million, or 76 cents an American depositary receipt, in the fourth quarter. That's more than double the 33-cent loss analysts were expecting, the average of 7 estimates compiled by Bloomberg. Each Suntech ADR is worth one ordinary share.

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Steve Leone

Steve Leone

Steve Leone has been a journalist for more than 15 years and has worked for news organizations in Rhode Island, Maine, New Hampshire, Virginia and California.
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