Managers of SolarWorld, a solar energy company based in Hillsboro, Ore., filed a formal complaint Wednesday accusing China of illegal export subsidies.
Representing a coalition consisting of six other U.S. manufacturers, SolarWorld petitioned the federal government to halt the rise of heavily subsidized solar cells and panels that the China’s state-supported solar industry is currently dumping into the American market.
In the formal complaint, SolarWorld said that China uses cash grants, discounts on raw materials, preferential loans, tax incentives and currency manipulation among tactics to boost exports of solar products. SolarWorld, an employer of more than 3,300 people,@@http://www.solarworld-usa.com/news-and-resources/news/domestic-solar-manufacturers-petition-to-stop-unfair-trade-by-china.aspx@@ lost 58 percent of its shares this year, and hopes that its complaint will convince the government to levy tariffs on more than $1 billion of Chinese solar cells and panels.@@http://www.businessweek.com/news/2011-10-20/solarworld-studies-seeking-china-antidumping-case-in-europe.html@@
Frank Vignola@@http://directory.uoregon.edu/telecom/directory.jsp?p=findpeople%2Ffind_results&m=staff&d=person&b=name&s=Frank+Vignola@@, a professor of physics at the University and director of the Solar Radiation Monitoring Lab@@http://solardat.uoregon.edu/@@ on campus, agrees that it may be time to implement some sort of tariff to keep more solar-based jobs in America.
“This is a role government needs to play because the corporations are not in position to play it,” Vignola said. “The companies cannot change rules. They can lobby for rules to change, and that’s exactly what they’re doing.”
Imports of Chinese solar panels and energy cells have increased 300 percent from 2008 to 2010, a remarkable trend that has put immense pressure on U.S. companies; in the last 18 months, seven have either been forced to downsize or shut down entirely.@@http://www.solarworld-usa.com/news-and-resources/news/domestic-solar-manufacturers-petition-to-stop-unfair-trade-by-china.aspx@@ Solyndra, a solar panel manufacturer based in Fremont, Calif., received more than $527 million in government loans as part of the 2009 stimulus package, is one of those companies@@http://www.nytimes.com/2011/09/01/business/energy-environment/solyndra-solar-firm-aided-by-federal-loans-shuts-doors.html?pagewanted=all@@. The company filed for bankruptcy, prompting criticism from conservatives about President Barack Obama’s investment in green energy@@http://www.sustainablebusinessoregon.com/national/2011/08/solyndra-shuts-down-1100-jobs-lost.html@@. Two other major solar energy companies, SpectraWatt and Evergreen Solar Inc., declared bankruptcy in the same month.@@http://www.oregonlive.com/news/index.ssf/2009/01/solarcell_maker_halts_construc.html@@
“As a result of the dumping and illegal subsidies, the U.S. industry is suffering severe harm to employment, pricing, production and shipment,” a SolarWorld statement said Wednesday. “The surge in foreign solar cell imports has resulted in the elimination of thousands of jobs.”
The complaint comes only days after Sen. Ron Wyden@@http://wyden.senate.gov/@@ (D-Ore.) released a report detailing the expansion of China’s hold on the solar market and its negative effect on business.@@http://wyden.senate.gov/download/?id=f57bb45c-cd7a-487b-a672-2c27eb7eea5a@@
“China has worked to achieve their economic goals by providing a myriad of subsidies to its solar technology producers,” the report said. “These subsidies encourage the production and export of solar cells and modules and support their sale at below market prices, making it possible for Chinese companies to stay ahead of their foreign competitors.”
U.S. manufacturers have invested millions into setting up solar factories, and many are not seeing a return on their investment partially because of these low-priced Chinese imports. Many companies from around the U.S. are joining the newly formed Coalition for American Solar Manufacturing, which will seek trade protection from foreign imports. China is able to manufacture the solar technology cheaply because of the grand scale of manufacturing. Their ability to mass-produce has helped them keep the prices down.
“If you want to help the economy, you buy locally,” Vignola said. “We want people to spend money here because we get the added return of buying here. When we buy from China, we lose a lot of benefits to the economy.”
Pacific Solar and Rain, a Eugene-based solar manufacturing company, @@http://www.pacificsolarandrain.com/@@offers their customers both Chinese and American-made options.
“One of the first things we do when we come to a site is we’ll ask, ‘What kind of panels do you want? Do you want the American-made, made in Oregon, or do you want Chinese?’ We try to do that because we do have competitors who sell Chinese models so we try to compete with that,” company founder Luke Rabun said. “We definitely forewarn them that we don’t think the quality is as good.” @@http://www.manta.com/g/mtxg6bd/luke-rabun@@
Rabun has been installing solar panels around Eugene for six years and has always had steady business. He says he feels threatened by the low prices of Chinese imports but has found it challenging to sell Chinese imports in this area partially because of the demographics of Eugene.
SolarWorld and the coalition are both represented by Wiley Rein LLP in D.C., and Wyden, along with Sen. Jeff Merkley (D-Ore.), plans on speaking on behalf of the American solar companies in the Capitol in the coming weeks.@@http://sustainablebusinessoregon.com/articles/2011/10/solarworld-leads-charge-against-china.html@@
The complaint aims to end China’s decimation of U.S. solar manufacturing and jobs. The coalition asked the Obama administration to impose anti-dumping duties on imported Chinese solar equipment. They also asked for tariffs of more than 100 percent on the wholesale price of solar panels from China. The Department of Commerce will now review the complaint under federal rules. The complaint, if successful, would drive up the price of solar energy in an effort to breathe life into the struggling American industry.
“This issue could go either way right now,” Vignola said. “It’s at a pivotal point, but it will be at a pivotal point for years to come.”