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Court Rules That Imported Solar Panels Are Bad For US Manufacturing (theverge.com)

The International Trade Commission has ruled that American companies are being hurt by cheap solar panels from overseas, providing an opportunity for President Donald Trump to tax imports from countries like China. The Verge reports: Today's unanimous decision ruled that the companies SolarWorld Americans and Suniva were struggling financially not because of their own poor management, but because they couldn't compete with cheap panels from countries like China, Mexico, and South Korea. Suniva is now suggesting import duties of 40 cents a watt for solar cells, and a floor price of 78 cents a watt for panels. (Right now, the average floor price, worldwide, for panels is about 32 cents.) The Solar Energy Industries Association warned that implementing these suggestions could end up doubling the price of solar, thus destroying demand and causing Americans to lose their jobs.

45 of 364 comments (clear)

  1. #MAGA = kill solar to support clean coal by Anonymous Coward · · Score: 3, Funny

    We'll get those coal miners their jobs back, you just wait and see. #crookedHillaryLoses

    1. Re: #MAGA = kill solar to support clean coal by Anonymous Coward · · Score: 5, Insightful

      Dream on, coal is dead and is not coming back. Now the US has held back from producing solar technology. Wants to institute protectionism to make up for poor planning. Wait till the wto steps us and says the US is unfairly charging tariffs allowing other countries to charge tariffs too.

      All that are hurt are US citizens. China will sell its solar cells someplace else and US will lose those markets too. Poor planning.

    2. Re:#MAGA = kill solar to support clean coal by jonwil · · Score: 5, Informative

      Even if you made solar power illegal, it would do absolutely nothing to get the coal miners jobs back. The major reason coal has been killed in the USA is because fracking and other unconventional forms of extraction have made generating power using natural gas more attractive than using coal.

    3. Re:#MAGA = kill solar to support clean coal by Hognoxious · · Score: 2

      Whatever the level is, almost half of American voters have it, with slightly more than half in certain key states.

      --
      Confucius say, "Find worm in apple - bad. Find half a worm - worse."
    4. Re: #MAGA = kill solar to support clean coal by Bartles · · Score: 2

      Burning coal is not expensive. Mining coal is not expensive. So why cant it compete?

    5. Re: #MAGA = kill solar to support clean coal by jonwil · · Score: 2

      You would have to ask the power companies that have replaced coal generation with gas generation why they have switched from coal to gas and why it cant compete.

      Its entirely possible that building new gas generators (and burning cheap gas) is cheaper overall than refurbishing coal plants that may be several decades old and need big sums spent on upgrade and then continuing to burn coal in those plants.

    6. Re: #MAGA = kill solar to support clean coal by SandWyrm · · Score: 2

      Dream on, coal is dead and is not coming back. Now the US has held back from producing solar technology. Wants to institute protectionism to make up for poor planning. Wait till the wto steps us and says the US is unfairly charging tariffs allowing other countries to charge tariffs too.

      All that are hurt are US citizens. China will sell its solar cells someplace else and US will lose those markets too. Poor planning.

      Logical fail.

      The proposed tariff would hurt CHINESE manufacturing, while encouraging US production of solar panels.

      The result would be higher prices (hurting adoption of solar) in the short term, but a healthier US solar production industry in the long term.

  2. Let's just make solar illegal to import! by burtosis · · Score: 5, Insightful

    After all, what's more important - helping cut the costs to increase adoption and cut CO2 emissions, or getting the third vacation home for some local solar company CEO?

    1. Re:Let's just make solar illegal to import! by MangoCats · · Score: 5, Insightful

      You think this is for the solar CEOs? Man, pull back one layer of onion and I already smell big oil here.

    2. Re:Let's just make solar illegal to import! by zilym · · Score: 2, Interesting

      The gov't has been penalizing the import of cheap foreign solar panels since at least 2011. Trump is just more of the same old BS...

      Free electricity from sunshine negatively impacts gov't tax revenues, therefore it is against gov't's interests to allow solar panels to be easy to obtain and install for cheap. We've had this technology for decades, yet you STILL can not walk into a Walmart or Home Depot today and load your pickup truck with solar panels (overpriced puny toy panels don't count). Yet you can pick up a noisy and expensive to operate gasoline powered generator at ANY of those big box stores quite easily...

      I jumped through all the paperwork and bureaucracy back in 2010 to have 5KW of solar installed on my house. Without an electric bill to worry about paying every month, I decided to quit my full-time day job and haven't had to pay significant income taxes ever since. Without driving around to work every day, I also don't pay nearly as much road (fuel) taxes either.

      If everyone managed to jump off the grid tomorrow, the gov't would be up a creek without a paddle due to all the tax revenues drying up. You can bet they aren't going to let that happen. So the war against cheap solar panels continues...

    3. Re:Let's just make solar illegal to import! by thinkwaitfast · · Score: 2
      I have solar....my house is ~100% solar powered, but I really don't think oil companies are worried about a few solar panels. The US gets ~1% of electricity from solar and oil is not used in electricity generation except a few special circumstances.

      Evergy in the US

    4. Re:Let's just make solar illegal to import! by Anonymous Coward · · Score: 3, Interesting

      China also demands 51% ownership of anything on its soil. Imagine if the US demanded you had reps from the NSA, DHS, DEA, and the FBI on your company's board, approving all your decisions.

    5. Re:Let's just make solar illegal to import! by mentil · · Score: 5, Insightful

      Oil companies also tend to have their fingers in natural gas (since the same well often gives both), which DOES produce a large portion of electricity in the US.

      --
      Corruption is convincing someone that the selfless ideal is the same as their selfish ideal.
    6. Re:Let's just make solar illegal to import! by blindseer · · Score: 2

      Free electricity from sunshine negatively impacts gov't tax revenues, therefore it is against gov't's interests to allow solar panels to be easy to obtain and install for cheap.

      Against the government's interests? The government just *LOVES* to buy votes. You know what also negatively impacts government revenues? Tax deductions on electric and natural gas cars. Why do you suppose those were ever created? Any tax deduction negatively impacts tax revenues. That includes deductions for children, mortgages, education loans, and on and on. The government deducts taxes on things they want you to do, like buy solar panels. It's how the government effectively pays people to do things it wants people to do. The government wants people to have kids, get an education, and buy a house. They also want people to get solar panels.

      We've had this technology for decades, yet you STILL can not walk into a Walmart or Home Depot today and load your pickup truck with solar panels (overpriced puny toy panels don't count). Yet you can pick up a noisy and expensive to operate gasoline powered generator at ANY of those big box stores quite easily...

      Why do you think that is? Think about what a portable gasoline generator is used for. I emphasize "portable" because that's the kind you are going to pick up at a big box store, as opposed to a stationary one that would be a special order item that's not stocked on a shelf. A portable generator is very useful because it is portable. It can be put on the back of a truck or on a trailer and brought just about anywhere. They run on common gasoline. They will provide power at any time. They are also relatively cheap at about a kilobuck each, which is not a whole lot if it means saving food from spoiling in a power outage, getting work done on a job site, or just making sure that the guys are able to see a football game and drink cold beer while on a weekend away from the wife and kids.

      The reason you can't just stop at a big box store and get a truckload of solar panels is the same reason you cannot just stop at a big box store and get a truckload of shingles. Neither are a high volume item. When people buy shingles they will want a particular size, shape, color, just like they would want a particular kind of solar panel. I'm sure if you are not picky about how you cover your roof then you could find something in a big box store that would be suitable. If you don't care that the roof of your house is covered with white corrugated sheet metal then you can pick that up, because that's pretty common stuff for barns, sheds, garages, factories, and even the occasional home owner that doesn't care what's on the roof so long as it keeps the rain out. If you want anything else then you are going to have to order it.

      A bit of searching the internet tells me that a 5kW solar panel system will take up about 500 square feet, weigh about a half ton, and cost about $20,000. In contrast a 5kW generator takes up probably 6 square feet, weighs about 200 pounds, and costs about $1000. Operating costs for that noisy generator is of course an issue but then people don't typically use them regularly for electricity. They use it for power outages, work sites, and camping trips.

      If everyone managed to jump off the grid tomorrow, the gov't would be up a creek without a paddle due to all the tax revenues drying up. You can bet they aren't going to let that happen. So the war against cheap solar panels continues...

      Yep, the government is conspiring against solar panels. The small market has nothing to do with the costs and inconvenience of solar panels. I think you have your aluminum helmet on too tight.

      Out here in the Midwest these portable generators see a jump in sales about twice every year. They'll get bought up when the winds and rain threaten in the summer, and when ice and snow threaten in the winter. There's a lot of overhead power lines that can be damaged i

      --
      I am armed because I am free. I am free because I am armed.
  3. More imported energy by DesertNomad · · Score: 4, Funny

    That's all solar is - energy from somewhere else!

  4. Science vs politics by spaceman375 · · Score: 2

    This is a seriously complicated issue. Proper economic modeling can give us a good idea of how to proceed, but political greed will finance whatever spin it may take to move mass opinion in the direction of short term profit for the few people who can afford the spin doctors. Solar futures are now in jeopardy for the US. Sigh.

    --
    On the one hand you take life too seriously, and on the other, you do not take playful existence seriously enough. Seth
  5. This sounds great until... by skam240 · · Score: 5, Insightful

    This sounds great until you think of the ramifications of more expensive solar panels

    http://www.bbc.com/news/world-...

    Quite a lot of solar adoption is driven not by a commitment to fighting global warming or pollution in general but by savings. Make the panels more expensive and adoption rates will drop significantly.

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    1. Re:This sounds great until... by Ritz_Just_Ritz · · Score: 4, Insightful

      Agreed. If it can be proven that imports are subsidized or enjoy some sort of unfair advantage, great....impose a duty. If it's just a matter of local companies not being willing to compete and using government as a cudgel to pad profits...well....fuck 'em....compete or die.

    2. Re:This sounds great until... by Sperbels · · Score: 2

      Because there is a huge energy industry that doesn't want to retool for solar and they have a good bit of influence on the government.

    3. Re:This sounds great until... by thinkwaitfast · · Score: 3, Interesting

      Exactly, I've been recently looking into buying another 10+kw for my solar system, especially now that solar panels have fallen below 20cents/w. I'm squeaking by now on 2.5kw, but moar is always better, plus it will give me full power in low light conditions, ie, winter.

    4. Re:This sounds great until... by drinkypoo · · Score: 2

      Because there is a huge energy industry that doesn't want to retool for solar and they have a good bit of influence on the government.

      It's not that they don't want to re-tool for solar. It's that pumping oil out of the ground permits you to ignore most of the externalities, and making solar panels doesn't (unless you make them in China, where you can use slave labor and you don't have to worry about emissions.)

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  6. BAD for jobs by chromaexcursion · · Score: 5, Insightful

    There are FAR more people employed in the sale and instillation of solar panel than there are in manufacturing.
    Raising the price of panels will kill those jobs.
    Stupid and shortsighted. Protect a few manufacturing job at companies that can't compete, and lose orders of magnitude more jobs in sales, and instillation.
    The only way US manufacturing can compete is through automation. Which means almost no one will be employed in manufacturing.

    "The International Trade Commission" is a US group, it has no international mandate. Enacting tariffs will result in the affected countries enacting retaliatory tariffs on US made goods. More US jobs lost. "Dumb and Dumber"

    1. Re:BAD for jobs by Grishnakh · · Score: 4, Insightful

      Stupid and shortsighted. Protect a few manufacturing job at companies that can't compete

      An import factor here is: who are they competing against? TFS says they can't compete against "cheap" panels from Mexico, China, and *South Korea*. South Korea is NOT a low-cost locale. It's not as expensive for labor as Japan, but it's not cheap either; labor there is surely more expensive than someplace like Alabama. If we can't compete against South Korea on something, that means we're just incompetent, and should throw in the towel.

    2. Re:BAD for jobs by ShanghaiBill · · Score: 5, Informative

      South Korea is NOT a low-cost locale ... labor there is surely more expensive than someplace like Alabama.

      Median salary in S. Korea: $29,125
      Median salary in Alabama: $39,180

      Both figures are the result of a 10 second Google search.

      Disclaimer: I think import restrictions on solar panels are idiotic.

    3. Re:BAD for jobs by Anonymous Coward · · Score: 2, Insightful

      You must take in account that no developed country has the retarded healthcare "system" that USA has. That makes possible to live with a reasonably high quality of life even with lower wages.

  7. well, yeah by Anonymous Coward · · Score: 3, Insightful

    Free markets are a means to an end. They are often very effective at helping us towards our goals, but they are NOT the goals.

    The goal ought to be roughly: do whatever maximizes the portion of non-lazy workers who are able to fully support a modest family on a single income.

    Usually that means we support business and free trade, but don't confuse business or free trade for the goal.

    1. Re:well, yeah by MightyMartian · · Score: 5, Interesting

      IN the post-WWII era trade liberalization has been about creating economic interdependence as jobs or wealth. It was believed that increasing economic interdependence would reduce the likelihood of hostility between countries joined in a liberal and relatively open trade pact. But there are also significant benefits to any market, providing it is sufficiently mature and robust, being able to sell easily outside its borders, and certainly easing of trade restrictions is very good for consumers. The lesson of protectionism in the 18th and 19th century was that it didn't ultimately improve domestic economies, it tended to favor industrial and business indolence and inefficiency, as domestic manufacturers, protected from competition, ultimately served consumers poorly. Steel tariffs which protected domestic steel industries increased costs all the way down the line.

      It's a lot different for developing economies, where local industry may need protection for some time, but one can hardly use that excuse for countries industrialized as long as the US. If what Trump and his supporters say is true, then the US has an incredibly weak, almost developing world-like economy, and I think we all know that's not true.

      --
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    2. Re:well, yeah by Uberbah · · Score: 3, Insightful

      IN the post-WWII era trade liberalization has been about creating corporate profit at the expense of workers, consumers and the environment

      FTFY. Nafta bankrupted not only American factory workers, but millions of Mexican farmers, just as one example of the "wonders" of free trade.

  8. Why pick on solar? by ClickOnThis · · Score: 3, Insightful

    Lots of manufacturing jobs have left the USA because it's more expensive to manufacture here. So why pick on solar? Are the foreign solar companies dumping, or are the foreign governments subsidizing, with the aim of driving US companies out of the market? If so, I see the argument for tariffs, but there's nothing about dumping or subsidies in the ruling as far as I can see.

    --
    If it weren't for deadlines, nothing would be late.
    1. Re:Why pick on solar? by ShanghaiBill · · Score: 4, Insightful

      This doesn't make sense to me either. Under WTO rules, retaliation is permitted against dumping and subsidies. But there is no retaliation permitted just for low prices. Domestic producers don't have a "right" to be shielded from competition. Even weirder, the court is setting a "price floor" that seems to prohibit even domestic competition from undercutting incumbent producers.

  9. Whine with cheese by WaffleMonster · · Score: 2, Informative

    Are Mexico, Canada and South Korea dumping solar panels for less than cost of production? Are they using slave labor? Do employees work in hazardous conditions?

    If not please go fuck yourselves.

  10. This is great news for solar in the USA by Waffle+Iron · · Score: 5, Funny

    For over 50 years now, we've had a stiff tariff on imported light trucks. What was the outcome? The USA is the pickup truck capital of the world.

    It looks like with this tariff, we can eventually be the kings solar panel as well. All we need is the right marketing strategy.

    If we can get people to pay over $60K for a pickup, we can also get them to support solar panels with high profit margins. A good start would be to market "heavy duty" panels and promote them as an enabler of rugged individualism.

    Styling will also be key: for example maybe carbon-fiber frames, menacing hexagonal honeycomb collector grids, and prominent oversized exposed heat sinks on the electronics. Who wouldn't want the most bad-assed roof on their block?

    You never know, people might start installing several times the solar capacity they would ever use just so they can brag about their peak kilowatt capacities.

    1. Re:This is great news for solar in the USA by Anonymous Coward · · Score: 3, Funny

      You’ve never been to Portland, have you?

    2. Re: This is great news for solar in the USA by PoopJuggler · · Score: 2, Funny

      Wow. We're the pickup truck capital of the world? What an amazing and honorable legacy. Something to truly be proud of for centuries to come. All those other nations are idiots for investing in science, education and medical technology. The real long term power is in making pickup trucks.

    3. Re:This is great news for solar in the USA by Sassinak · · Score: 5, Insightful

      That's just not true.. no one (at least in appreciable numbers) buys US made pickup trucks overseas in general.. so the demand is low.. the US makes most of the vehicles for the north American market (NAFTA anyone?) but outside of that, most countries build their own as its a utility vehicle that has brand association.

      And most of the trucks in the US are not technically imported, they are assembled in Canada/Mexico and the US (either through part replacement schemes, cab shipments, or kits), which classifies them as an American vehicle (ie no import tariffs). But this hurts no one but the consumer since those that don't want to even bother with the hassle they just don't sell them to the US.. (which basically means the US market is a US ONLY market which keeps the prices high because they have zero competition or even incentive to make a better product). Or to put it another way, its a geopolitical monopoly.. and we all know monopolies can be good, but are usually bad because the audience is captive.

      --
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    4. Re:This is great news for solar in the USA by drinkypoo · · Score: 3, Informative

      Uh no. Most countries do not build their own pickup trucks. They might have pickup trucks built there, but the most popular brands in the world (in order) are Ford, Chevrolet, and Toyota. Essentially all the pickup trucks on the planet are made by one of those three companies.

      International popularity of the F-150, Ranger, and Silverado is massive. I don't know where this myth about American trucks not selling worldwide came from, but it is bullshit. Our pickup trucks are the most popular in the world, because they are the best. People talk a lot of shit about Toyotas but they don't build anything made to do work at the level of an F-Series or even a Silverado. The next step up from a full-size, full-fat American pickup truck like a 3/4 ton or 1 ton diesel is a much heavier vehicle, like a Unimog.

      As for the chicken tax harming American auto buyers, it really hasn't. In fact, arguably, it's done the opposite. In the recent lull in American mid-size truck production, people bought plenty of Japanese mid-size trucks which were actually produced here in the USA. The Chicken Tax actually has helped preserve or even create American jobs! The only vehicles to which it applies are light trucks, and even then only ones for cargo and not for passengers. We've got a 2006 Sprinter T1N and Mercedes has to drop the front subframe and ship the vehicle and the engine+front suspension separately to dodge the tax. But passenger vans just get sent over fully completed, even though they're the same vehicle with holes cut out and windows slapped into 'em. The truth about the chicken tax is that it is not arduous to dodge around its requirements, and also that its requirements only affect a minority of buyers.

      There is one group of people who were harmed slightly by the chicken tax: people who bought Toyota pickups before about 2015 or 2016. I'm not sure which year it was, but in one of those years they finally started sharing drivetrain parts between the HiLux (the international model of pickup) and the American pickups. Parts sharing is important to parts availability, and the HiLux parts in question were also stronger.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  11. Re:I guess the real question is by ShanghaiBill · · Score: 2, Insightful

    Another question is how much the coal/natural gas lobby's have donated to ensure this ruling?

    I love conspiracy theories, but this one just doesn't fit the facts:

    1. This is a court ruling, not a legislative or regulatory issue, and lobbyists don't talk to judges.
    2. Coal producers are mostly broke, and would be unlikely to benefit much from less solar since no new coal plants are being built. The benefits would mostly go to NG.
    3. The NG industry is dominated by independent frackers who are way too disorganized to effectively lobby for something like this.

    Solar is still less than 1%, Coal and NG have more to gain by fighting each other. Coals biggest competitive adversary is gas, and will be for a long time.

  12. BAD for WHICH jobs? by Ungrounded+Lightning · · Score: 2, Interesting

    There are FAR more people employed in the sale and instillation of solar panel than there are in manufacturing. Raising the price of panels will kill those jobs.

    But how many of those jobs are held by US citizens or holders of work visas and how many are "undocumented" aliens?

    Not saying the latter's jobs don't matter. AM saying that, as far as jobs for the US citizen voters who elected Trump on the promise of more jobs for US citizens (and others with legal work status), job losses for that group don't count. So your argument won't convince them.

    Also AM saying that raising the prices can retard other parts of the economy, so it's not that simple.

    (Also saying I was planning to buy a couple pallets of solar panels now that they were down into the $0.30/W range - providing enough generation to make my retirement home grid-independent - and this might foul that up. Sigh. It will be interesting to see how it works out.)

    "The International Trade Commission" is a US group, it has no international mandate.

    Neither does the US presidency, judiciary, congress, or the raft of federal agencies, of which this is one. Per wikipedia:

    The United States International Trade Commission (USITC, sometimes I.T.C.) is an independent, bipartisan, quasi-judicial, federal agency of the United States that provides trade expertise to both the legislative and executive branches. Furthermore, the agency determines the impact of imports on U.S. industries and directs actions against unfair trade practices, such as subsidies, dumping, patent, trademark, and copyright infringement.

    Saying "it has no international mandate" may make it SOUND like it's some private group, rather than a fully functional and authorized part of the government. But it doesn't make it any less legitimate than any other part of the government.

    International relations are an anarchy. Each sovereign country's governmental components don't require any "mandate" from any outside-the-country persons, groups, or governments to be as legitimate as any other governmental component.

    --
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  13. Have you seen the South? by rsilvergun · · Score: 5, Insightful

    or most of Michigan? Hell, I remember seeing a report where a charity that specialized in medical aid to developing nations was down in Alabama.

    If you live in one of the successful cities (New York, Dallas, Phoenix, Los Angelos, etc) it's easy to forget and ignore what a hell hole large swaths of the US became when the manufacturing jobs went overseas. That's also exactly why Trump won. He didn't forget that. He capitalized on it.

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    1. Re:Have you seen the South? by MightyMartian · · Score: 2

      If he won, it was by people who haven't moved on. Even if manufacturing comes back to the Rust Belt, it will only hire a fraction of those that it did before, and if the way things are going right now, it will come back because various levels of government are basically willing to use tax money, deferred or otherwise, to bribe them back.

      --
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    2. Re:Have you seen the South? by Gryle · · Score: 2

      Sorry, if he won? Trump did win. He didn't win the popular vote, but he did win the election by the rules of US elections.

      --
      Only two things are infinite, the universe and human stupidity, and I'm not entirely sure about the universe - Einstein
  14. Can't compete? Get out of the business. by Timothy2.0 · · Score: 2

    Businesses rally behind the "free market" when it suits then, but when that same free market bites them in the ass, they run crying to the government for relief.

    I'm interested to know why costs in the US are so high. One could decry cheap labour from China and Mexico, but in that case, why is South Korea included in the list of countries that are keeping prices down? Moreover, solar panel manufacturing is a largely-automated process, pushing labour costs down even more...

    Sounds like mismanagement to me...

  15. Re:You don't pay $60k for a pickup truck by asylumx · · Score: 2

    You don't pay $60k for a pickup truck unless you're an idiot.

    Unfortunately, there are millions of people in this country that fit that description. They have more money than sense, they buy these pickup trucks that can't even fit in a reasonable parking spot, then they complain that they work too hard for what they have, complain about OTHER PEOPLE acting entitled, and they vote for people like Trump...

  16. Um, Hillary completely forgot about them by rsilvergun · · Score: 5, Interesting

    It's why she lost. She didn't campaign in the rust belt swing states. There were stories of the DNC down there freaking out because nobody was showing up to help them win. She bought into that "Blue Firewall" nonsense and figured since the voted Obama they'd vote for her. She lost by a hair's breath. All she had to do to win was stop wasting time in Arizona and hit the pavement in the states that mattered.

    But well, she always was arrogant as heck. That was one of the main faults people sited for not liking her, and well, elections are popularity contests...

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  17. Because subsidies ... by PPH · · Score: 2

    ... are for the benefit of manufacturers, not the general public.

    Face it. We live inside what is essentially an economic Iron Curtain.

    --
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