The United States, the European Union and India are all slapping tariffs on Chinese solar panels, accusing Beijing of dumping. Does this trade war risk killing the nascent solar power industry?
Image: Reuters/K. Lamarque
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The global solar industry is reeling this week following the Trump administration's announcement that it will impose a 30 percent tariff on imported solar panels, mainly from China.
The US Solar Industries Association said this will result in the delay or cancellation of billions of dollars in solar investments, and the loss of 23,000 US jobs this year.
Despite the dramatic predictions, the solar industry likely knew the announcement was coming. The European Union has set roughly equivalent tariffs on imported Chinese panels, which were renewed in September 2017.
Another indication was how earlier this week, India set a whopping 70 percent import duty on Chinese and Malaysian solar panels.
Brussels, Delhi and Washington all allege that China has been "dumping" the panels on their markets — selling them at artificially low prices and taking a loss in the short term in order to kill competitors in rival markets.
China's solar industry has benefitted from exportImage: picture alliance/Zumapress
SolarWorld Americas, the largest US solar panel manufacturer, first called for the US to impose such tariffs three years ago. The move fits with US President Donald Trump's protectionist promises.
But other parts of the US solar industry have been pleading with the administration to not follow Europe's lead, saying it would cripple their young but fast-growing businesses. They convinced a bipartisan group of 16 US Senators and 53 House members to write to Trump last year asking him not to impose the tariffs.
The US has set such tariffs before, in 2014, but ran afoul of World Trade Organization rules. South Korea has said in will likely challenge these new tariffs with the WTO.
Solar slowdown
While US and European solar panel manufacturers have said the tariffs are necessary to make a level playing field, solar installers, generators and users say thanks to the tariffs, those manufacturers may not have any customers left.
"While tariffs in this case will not create adequate cell or module manufacturing to meet US demand, or keep foreign-owned Suniva and SolarWorld afloat, they will create a crisis in a part of our economy that has been thriving," said Abigail Ross Hopper, president of the Solar Industries Association. This "will ultimately cost tens of thousands of hard-working, blue-collar Americans their jobs," she added.
She predicted that the tariffs could cut forecast solar installations this year by nearly 20 percent, to 9 gigawatts from 11 gigawatts. "It's just basic economics: If you raise the price of a product, it's going to decrease demand for that product."
US solar companies have pointed to the experience of their counterparts in Europe, where anti-dumping duties have been in place on Chinese solar panels since 2013. The industry association SolarPower Europe has said the EU tariffs have added at least €500 ($622) to the cost of a household installation.
"These policies have been tried in many parts of the world, and in not one case have the measures lead to more jobs, more manufacturing and more value," said James Watson, SolarPower Europe's CEO. "In essence, trade measures are a blunt tool with many unforeseen consequences on solar manufacturers of other crucial elements of the value chain."
Solar power has been massively expanded in the US over the past several yearsImage: Imago/blickwinkel
Trade trumps environment
The US is the world's fourth-largest solar market after China, Japan and Germany. Zvi Schreiber, CEO of online freight marketplace Freightos, noted that the tariff is going to cause disruption in global trade patterns for these products — which could have the effect of shutting down new solar projects around the world.
"There will be shifts in demand," he told DW. "It's not just the solar panels themselves — today any product they manufacture includes dozens if not hundreds of materials."
Even if the playing field isn't level at the moment, Schreiber questions whether Washington and Brussels are cutting off their nose to spite their face, risking killing off an industry that does environmental good in the name of free trade — and risking a trade war with China in the process.
"Of course, the big loser is the environment," he said. "If China is willing to subsidize solar panels, we should all say 'thank you very much,' because that's going to help our planet — which is more important than whether it's fair."
"ThaIt's something that benefits all of us."
10 creative concepts for energy
Over the years, DW has reported on creative and sustainable ways of generating renewable energy. Now we've compiled the top concepts - which represent a boost of hope toward a more sustainable world.
Image: Wattway/COLAS/Joachim Bertrand
Urine and excrement
Our physiological needs can be used for much more than filling our bladders and our toilets. Researchers are looking into how to transform urine and other human excrement - let's spare the details - into energy. For instance at refugee camps, this could provide lighting while solving sanitation problems. Despite the negative associations, our corporal waste may one day be our best ally.
Image: Imago
Algae farms
It's an incipient idea that needs intense further research - but farming microalgae could be a solution to producing biofuel efficiently and sustainably. Large microalgae farms would transform sunlight and carbon dioxide into bio-ethanol. But even with optimal results, energy production would remain very low.
Image: picture-alliance/dpa/MAXPPP
Harnessing gentle breezes
Moya is a lightweight, flexible sheet that can harvest low-grade wind energy in a variety of locations - that's how its inventor, South African Charlotte Slingsby, describes it. This curtain can be installed into existing infrastructure without a need for expensive facilities or land-clearing. And it doesn't harm birds or bats, like large wind turbines can.
Image: Charlotte Slingsby
Coconut for coal
Wood remains the main energy source in many parts of the world - and this is leading to deforestation. Coconut shells and husks may be a sustainable alternative in countries like Kenya or Cambodia. Compared to traditional wood charcoal, coconut charcoal burns longer, is cheaper and avoids felling trees. It also eases management of coconut waste - a real problem in some regions.
Image: Imago/fotoimedia
Fish scales and bones
Fish factories create mountains of waste every day - which could produce energy. The high fat content in the tons of fish innards, along with scales and bones not suitable for the food market, can be used to produce biodiesel. Countries such as Honduras, Brazil and Vietnam have been already experimenting with this new energy source for years - but financial issues may hinder success.
Image: AP
Wind turbine in camouflage
The wind tree is a French innovation imitating nature to create energy. Jerome Michaud-Lariviere, the brain behind this concept, was inspired while observing leaves on trees fluttering in the wind. The tree-like structure has 72 mini-turbines instead of leaves, and can produce enough electricity to power 15 streetlights, charge an electric car or even power a small family home.
Image: NewWind
Bust a power move
Imagine tapping the energy of every step you take - this is the concept behind smart surfaces located under dance floors, football pitches, and metro stations, among other venues around the globe. The energy harvested can power low-voltage lighting or charge electronic devices in the immediate vicinity. So now there's a new excuse to keep your body moving!
Image: Daan Roosegaarde
Olives into biofuel
This delicious appetizer is also the source of olive oil that is a basic part of cuisine in Mediterranean countries. But once the olive has been pressed for oil, the leftovers can have a further use: biofuel. Production of olive oil creates four times its weight in waste. The Phenolive project turns that waste into electricity and heat, in doing so completing the product lifecycle.
Image: Fotolia/hiphoto39
Mustard plant residues
Power outages are still a daily reality in many areas of the developing world. A lack of resources has pushed people to find cost-effective alternatives - and "trash" from crops stands out as a good option. Incinerating the stems and leaves from mustard plants, for instance, can provide electricity to thousands of rural homes. The ash can then be placed back in the fields as fertilizer.
Image: DW
Solar roadways
Sun not only makes shimmering mirages on roads - it also produces energy. The Netherlands already has a 70-meter solar bike path, and France is now following in the same track. The country plans to install 1,000 kilometers of specially designed photovoltaic solar paneling on its roads over the next five years, with the aim of expanding its renewable energy capacity.
