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Don Walter's Comments

January 30, 2014

SolarWorld’s Actions Are Damaging the US Solar Industry

Solar product manufacturers and developers from Bakersfield to Bonn should stop whining about how and why they can not compete with the Chinese. In my opinion -- there are three truths about the position of the Chinese on solar project development and manufacturing: First, for at least the foreseeable future, the Chinese will ALWAYS have the ability to undercut other manufactures on price. Second, the Chinese may not have invented circumventing international law, but they have worked on its perfection. Third, the first two points -- which SolarWorld and other, lazy, bloated manufacturers seem to view as unfair advantages -- form the very foundation of the demise of the Chinese in this sector. No business model can sustain profitability based solely on cheaper pricing. Recent evidence of this underwhelming but basic economic principle was witnessed in Mexico and Japan -- havens of low priced products in the 1960's, 1970s and 1980s. SolarWorld and others should therefore stop their whining and, instead, focus on advancing the principle element supporting most technology driven products -- INNOVATION. No one, including SolarWorld, has ever accused the Chinese of being innovative.

Don Walter

Don Walter

Don Walter is a lawyer, former Director of Policy and Research for the Republican party in Washington, DC, and is currently developing solar energy projects in Mexico and throughout Latin America.

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