Thursday, June 28, 2012

USA - Solar Panel Companies - Bankruptcies - Tariffs on China

I have been interested in Solar energy since the 1970's. 

The development has come a long way technologically re the panels and storage systems.  Already an ordinary person can arrange to purchase solar panels and have a company do the complete installation.

As an economics student, it is interesting to read about the issues in the USA re the number of bankruptcies and financial difficulties of Solar companies that rec'd millions of dollars as govt-backed loaned or grants.  Also it will be interesting for me to see how the issues re the USA govt placing tariffs on Solar Panels made in China will be dealt with as time passes.

Abound Solar is latest government-backed bankruptcy
By James O'Toole @CNNMoney
June 28, 2012: 6:34 PM ET
U.S. slams Chinese solar panels with new tariffs
By James O'Toole@CNNMoneyInvest
May 17, 2012: 7:50 PM ET

most solar-related jobs in the U.S. are in fields like installation and sales that have benefited from cheap Chinese panels.

The tariffs are two-tiered. The first comprises a group of 61 exporters, including Yingli Green Energy and Trina Solar, who face rates of roughly 31%.

The second level encompasses all other Chinese producers not currently exporting to the U.S., who would be hit with a 250% rate should they begin doing so. This higher level was set in order to deter the 61 Chinese exporters named in the decision from attempting to duck the tariffs by shifting production to other companies.

Jesse Pichel, a clean technology analyst at Jefferies, said in a research note that Chinese manufacturers would still likely circumvent the new tariffs by shifting solar cell production or procurement to Taiwan.

I smiled when I read the following comment that a reader made to the above article.  Seems like a clever idea to me !

sumguy2006, 05/18/2012 01:45 PM

China should have seen this coming and raised their prices to just under the price of U.S. made panels. They would have sold less, but at least they would have pocketed the add'l profit.

Now they hand it over in the form of a tariff.

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