US tariffs on Chinese solar panels could slow industry

US tariffs on Chinese solar panels could slow industry Solar module prices have quickly decreased during the last five years due to several factors, including the economic recession and resulting lower demand for solar energy, an increased supply of polysilicon, expansion of manufacturing capacity, and, during the last year, increased competition from low-cost Chinese manufacturers. manufacturers of crystalline silicon solar cells, led by SolarWorld, formed the Coalition for American Solar Manufacturing, with the aim to hold China accountable to U. solar panels manufacturers. However, lower solar module prices from Chinese manufacturers have also helped reduce the price of solar energy, making solar more cost effective for U. These projections are supported by the Coalition for Affordable Solar Energy led by Sun Edison, which predicts that a 50 percent tariff would eliminate 14,000 jobs in the United States. In reaction to this situation, seven U. government has invested in providing tax incentives and loan guarantees with the aim to promote solar energy system installations and reduce its installation and generation cost. customers and more competitive with other forms of electricity generation. Average selling module prices have decreased 28. Since the enactment of the Energy Policy Act of 2005, the U. and international trade laws by filing antidumping and countervailing duty trade remedy petitions. Government incentives and renewable energy standards have been important drivers for solar energy deployment and cost reduction. As a result, on May 24, the Commerce Department slapped stiff tariffs on imports of Chinese solar panels, imposing tariffs of 31 percent to 250 percent on Chinese solar-product imports. jobs, diminish the competitiveness of solar energy relative to conventional and non-solar renewable sources of energy, and might also lead China to take retaliatory measures against U. 1 percent in 2011 (with respect to 2010) in the United States. The Commerce Department's decision, coupled with the recent expiration of the Section 1603 cash grant (in lieu of the Investment Tax Credit, is projected to increase solar electricity prices in the United States, affect demand for solar panels (which may exacerbate the current oversupply of polysilicon in the industry), hurt U. The solar market has grown more than 100% during 2011. US tariffs on Chinese solar panels could slow industry Trade News selected by Local Linkup on 08/06/2012