U.S. solar industry split on impact of China's subsidies

Nov 09 - USA TODAY

By Wendy Koch, USA TODAY

As fallout continues from the collapse of solar manufacturer Solyndra, the U.S. solar industry is divided on a related challenge that threatens its future: China's subsidies.

The split was evident Tuesday at an International Trade Commission hearing in Washington, D.C. Solar manufacturers that filed a petition on Oct. 19 against China's subsidies said that country is illegally dumping its silicon solar products in the U.S. market to drive out competitors. Other solar companies argued that lower panel prices benefit consumers.

"There is a schism," says Ben Santarris of SolarWorld Industries America, the largest U.S. maker of silicon solar products and a subsidiary of Germany-based SolarWorld. His company and six unnamed U.S. manufacturers filed the petition on behalf of the Coalition for American Solar Manufacturing, asking the Obama administration to impose duties on solar imports from China.

"What's happened here is a price collapse that's devastated domestic manufacturing," Santarris says, adding that U.S. manufacturers have had to lay off workers.

U.S. officials say China spent more than $30 billion in 2010 alone on solar subsidies. Asked about the petition, President Obama said last week that China has "questionable competitive practices" on clean energy.

Other solar companies, including China-based Suntech, say China's investment has benefited U.S. consumers by helping to reduce panel prices by 30%. Tuesday, to counter the petition, they launched the rival Coalition for Affordable Solar Energy.

"The vast majority of the existing 100,000 jobs in the solar industry are in sales, marketing, design, installation and maintenance. These jobs depend on affordably priced solar panels, and companies would have to lay off workers if panel prices rose as a result of this petition," Jigar Shah, CASE's co-founder, said in a statement.

The Solar Energy Industries Association, a trade group representing foreign and domestic companies, has not taken a position. "The solar industry is at a pretty important inflection point," says its vice president, Tom Kimbis. Amid fierce competition, he says, "There will be some winners and some losers."