Solar trade suit prompts Bay Area worries

The U.S. International Trade Commission ruled 6-0 Friday that Chinese solar panel imports are materially injuring, or at least threatening to injure, the domestic solar market, paving the way for a continued investigation by the ITC and the U.S Department of Commerce that could lead to tariffs on Chinese solar panels.

What's unclear is if there can actually be a winner in this trade case since many solar industry executives worry that tariffs will increase the cost of solar projects and slow the growth of the industry in the United States.

Still, SolarWorld, the only named company in the petition filed with the ITC, is stoked.

“The ITC’s unanimous ruling underscores what American solar manufacturers have argued for months: Without any production cost advantage, dumping by Chinese solar manufacturers and massive subsidies by the Chinese government are enabling Chinese producers to drive out U.S. competition,” said Gordon Brinser, president of Oregon-based SolarWorld Industries America Inc., which is the only company named in the suit, filed by a coalition of it and six unnamed solar firms. “Today’s ruling further erodes the credibility of denials by Chinese manufacturers and their importer allies in this case.”

The large majority of Bay Area solar companies that I cover are against slapping tariffs on China. These are some of the Bay Area largest employers including SunRun, SolarCity, Recurrent Energy and Sungevity, who, in additon to the worry that solar project costs will rise, are worried that tariffs will spark retaliation in the form Chinese tariffs on U.S. solar goods (actions to do this are already underway). And did I mention that America was a NET EXPORTER of solar panels and equipment to China last year?

Read more in the San Francisco Business Times.