Escalating Solar Trade War: Consumers Can Expect Higher Solar Panel Prices

[Jason]

The US government will be imposing tariffs on Chinese solar panels following a recent decision by the Department of Commerce (DOC). The tariffs are a response to accusations of dumping and subsidy leveled against China by the US subsidiary of German firm SolarWorld. The entry of subsidized Chinese firms into the market has squeezed many US solar manufacturers out of the market. However, it has also caused an astronomical drop in consumer prices for solar panels, leading to explosive growth in the US solar sector. The tariffs, while beneficial to US solar manufacturing, would increase consumer prices of solar panels, and may stunt the growth and expansion of solar markets in the US.

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[Ward L]

Tarifs Don't Usually Work Very Well

Since we buy so many more finished goods from China than China buys from us a tariff on imported SP will probably help support the US SP industry pretty effectively. Wonder why China "dumped" solar panels in the US?

[Sunking]

Wonder why China "dumped" solar panels in the US?

Why would any business or country want to crush competition?

[russ]

Since we buy so many more finished goods from China than China buys from us a tariff on imported SP will probably help support the US SP industry pretty effectively. Wonder why China "dumped" solar panels in the US?

Pardon? Just about everything China exports is subsidized - steel is a big problem plus their currency is controlled for them to have an advantage. The tariff only means the customer gets screwed again. The solar industry will not recover - some will try - those stupid enough to think the government "has their back".

[Ward L]

There is a difference

When I said the tariffs will support the US solar industry, at least to me, that doesn't mean consumers will be supported. To me that says US SP companies will be able to charge more for their products, survive financially and yes, consumers have to pay more (aka get screwed). Interesting that there seems to be so much negative opinions on this forum on China made SP presumably because of low quality. Apparently American's are still buying cheap Chinese solar panels over the more expensive US SP or a tariff wouldn't be needed. (My SP are made in China) I am not in favor of tariffs as they generally do not work in our global economy. If they are to work anywhere, it would be against a country that supports their exports. As you agree, China subsidizes many of their exports, which is effectively a negative export tariff. I would have preferred to buy US SP but didn't even know mine were Chinese until finding out via this forum. I doubt I would have been willing for pay much more for US made SP. In our global economy I think you should always shop for the product that meets your needs at the lowest price. I happen to like Ford cars, I don't care if they are partially made in Mexico, Canada, Tennessee or South Carolina.

[J.P.M.]

The US government will be imposing tariffs on Chinese solar panels following a recent decision by the Department of Commerce (DOC). The tariffs are a response to accusations of dumping and subsidy leveled against China by the US subsidiary of German firm SolarWorld. The entry of subsidized Chinese firms into the market has squeezed many US solar manufacturers out of the market. However, it has also caused an astronomical drop in consumer prices for solar panels, leading to explosive growth in the US solar sector. The tariffs, while beneficial to US solar manufacturing, would increase consumer prices of solar panels, and may stunt the growth and expansion of solar markets in the US.

More...

Depending on who you listen to, the bottom line for residential solar may amount to a few cents/Watt or a buck or so. Time will tell.

1.) I'd guess that what whatever the amount, the rocket and feather concept will prevail - prices will shoot up like a rocket and fall like a feather. That is, prices charged for in house inventories went up on news of the announcement regardless of the prices paid for that material. It's just business.

2.) Most of the tariff is at 28 or so %, depending on manufacturer. A few companies got whacked more, a few a bit less. The question then arises for the residential consumer of solar equipment concerned about price increases: 28% of what ? If some mfg. is selling to a distributor for a buck/Watt, does that add $ 1,400 ($.28 X 5,000) to the consumer price of a 5kW system ? I'd guess not. Things are usually more complicated than that simplistic view. I wouldn't be surprised at system prices going up 5% or so as a result of the duty, but I'm not knowledgeable in such things and opinions vary.

3.) What I am more sure about is that the tariff will be like the tide that lifts all boats. Sunpower and other non Chinese mfgs' of solar equipment stock prices jumped some after the announcement of the ruling. One likely reason is their profit margins will be easier to increase because they will raise prices even though they have no import duty.

4.) I'm also more sure Sunpower will trumpet what they'll try to peddle as their magnanimous decision to not take advantage of the situation and hold their already higher prices in check. Time will tell. Caveat Emptor.

[russ]

When I said the tariffs will support the US solar industry, at least to me, that doesn't mean consumers will be supported. To me that says US SP companies will be able to charge more for their products, survive financially and yes, consumers have to pay more (aka get screwed). Interesting that there seems to be so much negative opinions on this forum on China made SP presumably because of low quality.Not at all if you read posts the general feeling is that China products can be good depending only on quality control. If panels are made for a foreign company the QC is in that companies court. Some Chinese companies have stepped up to maintain quality as well. Small companies like those making knockoff controllers are the other extreme - lousy quality normally.

Apparently American's are still buying cheap Chinese solar panels over the more expensive US SP or a tariff wouldn't be needed. (My SP are made in China) I am not in favor of tariffs as they generally do not work in our global economy. If they are to work anywhere, it would be against a country that supports their exports. As you agree, China subsidizes many of their exports, which is effectively a negative export tariff. The decision to place tariffs is typically more political than anything. Companies in India for example get nothing delivered to the plant battery limits - they typically pay for all water lines, power lines, gas lines etc from the closest connection point which may be far off. They often have to build townships for their people including school and hospital facilities. Costs there really have to have a different basis than in Mobile, AL for example.

I would have preferred to buy US SP but didn't even know mine were Chinese until finding out via this forum. I doubt I would have been willing for pay much more for US made SP. In our global economy I think you should always shop for the product that meets your needs at the lowest price. I happen to like Ford cars, I don't care if they are partially made in Mexico, Canada, Tennessee or South Carolina.

My brand loyalty is non existent for the most part - I refuse to touch anything Apple - is that brand loyalty? I take the best deal I can find.

[Sunking]

To me that says US SP companies will be able to charge more for their products,

What US solar panel manufacture would you be referring too?

[pleppik]

What US solar panel manufacture would you be referring too?

There's still some left. Off the top of my head, SunPower and SolarWorld both assemble modules in the U.S., and there are quite a number of smaller companies including two in Minnesota.

IIRC the import duties only apply to finished modules, not the component PV cells.