Duties on Chinese Solar Higher than Expected

On May 17, 2012, The US Department of Commerce announced stiff anti-dumping tariffs that were much higher than expected. These duties amount to around 31 percent on crystalline silicon solar panels imported from China. The duties come in response to the Chinese government's dumping of solar panels below the cost of production.

As reported in Renewable Energy World, the DOC has set duties at 31.14 percent for Trina, 31.22 percent for Suntech and 31.18 percent for other Chinese solar manufacturers that chose to participate in the investigation. The companies that chose not to participate were hit with a 250 percent tariff. The tariffs will be retroactive and be applied to panels that were shipped from as far back as about the middle of February 2012.

Some insiders are concerned that these duties will adversely impact the growing American solar industry.They are likely to make Chinese solar panels much more expensive. It is expected they will add about $0.30 a watt to the price of a panel.

Chinese companies are expected to set up workarounds like tolling in which they send panels through another country, or even set up remote manufacturing facilities outside their country. Tolling is expected to add about $0.06 to $0.08 per watt

The Coalition for Affordable Solar Energy (CASE)believes the overriding goal should be to make solar energy as competitive as possible. Steep penalties on Chinese panels would inhibit the rate at which solar has been growing in the American market. Lower costs have made solar more appealing option to investors.

However, in the absence of duties, non-Chinese solar manufacturers would be pushed out and leave the world at the mercy of a virtual Chinese monopoly. China could then dictate the price and the type of solar technology that dominates the market.