Supporting Solar Power
I think there is a place for the government to support solar power but supporting supply, as in the case of Solyndra. is not the way to do it. The government should be encouraging demand. The most recent Energy Department loan guarantees are a step in the right direction.
- DOE said Friday it finalized a $1.24 billion loan guarantee to SunPower Corp. to help finance construction of a California photovoltaic solar generating facility.
- In addition, the department finalized a separate $646 million loan guarantee for First Solar to finance a thin film photovoltaic solar generation facility in California.
- DOE also finalized $1.46 billion in partial loan guarantees for two California solar photovoltaic generation plants sponsored by First Solar.
- The department approved a $1.4 billion partial loan guarantee for Project Amp, which aims to generate 752 megawatts worth of solar panels on 750 existing rooftops. The project is managed by Prologis.
- Lastly, DOE finalized $1.46 billion in partial loan guarantees for two California solar photovoltaic generation plants. The lead investor on the project is Goldman Sachs Lending Partners.
But the US solar industry must be protected from dumping by China.
SolarWorld reportedly preparing complaint accusing China of unfair solar trade
SolarWorld, the German company that employs 1,000 at a plant in Hillsboro, is reportedly teaming with other manufacturers to file a trade complaint accusing China of swamping the U.S. market with unfairly subsidized solar cells.
SolarWorld spokesman Ben Santarris said Thursday that the company was consulting with federal officials on how to hold China accountable for “its attempt, yet again, to destroy another U.S. industry.” He added, “We haven’t announced anything further.”
Santarris said China unfairly supports its solar industry with everything from government grants to loan guarantees to subsidized raw material, land, water and electricity.
“We can compete with any company from any country in the world on costs or on any other basis,” Santarris said. “But what we cannot do is compete with the Communist Party of China.”
The problem is Federal agencies could take months or years to make a decision.
The U.S. Commerce Department must act within a month after receiving a trade complaint. If the agency finds the case sufficient, the U.S. International Trade Commission holds a hearing on whether the industry is being harmed by unfair competition.
If so, the Commerce Department investigates to determine the amount of damage, and sets tariff rates. These steps can take a year to 18 months.
But the Obama administration can do it unilaterally.
Low-cost Chinese imports are surging into the United States, forcing American producers to slash prices. Imports of Chinese panels increased more than 1,500 percent from 2006 to 2010, according to U.S. Sen. Ron Wyden, D-Ore.
Wyden wrote to President Barack Obama on Sept. 8, calling on the administration to protect U.S. producers from unfair competition. He noted that Obama slapped duties on Chinese-made tires in 2009 without waiting for the lengthy U.S. agency review.
“Without the leadership of your administration,” Wyden wrote concerning solar manufacturing, “this industry may disappear, leaving behind additional workers without employment. Letting that happen is unacceptable.”
So once again the ball is in Obama’s court. What will he do? Increasing demand only helps the US economy if the solar panels are produced in the United States.
3 Responses to “Supporting Solar Power”
Oh yes I agree.
China must be made to understand that we do not appreciate the trade imbalance. If China can sell this technology so cheaply, then let them concentrate on selling it to third world countries whom truly need it, but don’t have a lot of money. Something tells me though, that once the west cuts China off, they will not bother with exporting the technology anymore.
I would go a bit further with China. That is, “if” we are not too preoccupied with ourselves for pressing a point. I would stir up the idea, in Congress, of the revocation of China’s most favored nation trade status with the United States, based on a number of issues. We need to let China know in no uncertain terms that we are not bluffing.
We need a little more respect from China IMO.
Ron is partly correct. Although one should note Sunpower is now part of a French utility, and PG&E is the top utility in the US. On the other hand, turning down loan guarantee to SolarCity –a company doing much more to spread the words –in the trenches, is sending the wrong message. It is the smaller innovative companies that need help!
By the way, the Chinese maybe doing us a favor by subsidizing crystalline solar modules so that many more people can afford solar power. It is also helping weed out novel, but non-viable, flashy startups like Solyndra.
Trade imbalances are great. We get lots of stuff for paper currency that they then have to help prop up the value of. I have no problem with that. And the US does need to support alternative energy programs, but not by punishing those that are producing cheap efficient panels to support our people that cant seem to get it going. what are we going to do? Put a tariff on Chinese panels, remove that option from the market making solar less viable here than in other countries where they do have them? American manufacturing just needs to get in the mindset that its competing with these other countries whether it likes it or not.