On Thursday May 17th 2012, the United State's Department of Commerce (DoC) announced a series of anti-dumping duties on Chinese solar panel and solar cell makers. While it is only a preliminary ruling, there is going to be major ramifications in the American solar industry that has come to rely on cheap imports from China.
The ruling imposed anti-dumping duties of just slightly over 31% on 61 Chinese manufacturers of solar panels and solar cells including Suntech and Trina. Chinese manufacturers who failed to respond to the DoC investigation were slapped with a 249.96% duty. The genesis of the decision is a complaint lodged by the United States unit of SolarWorld, a German based solar manufacturer along with six other US based manufacturers who have formed a loose coalition known as Coalition of American Solar Manufacturers (CASM).
The final ruling is awaited in early October 2012 and many industry watchers expect it to be in the affirmative. But the DOC will only issue an official Anti Dumping order enforcing the duties when and if the US International Trade Commission (ITC) makes a final determination on whether imports of solar cells from China materially injures the American solar industry. ITC is expected to make its final ruling on November 19th if not earlier.
As the world waits with bated breath, it is time to buy solar panels at greatly reduced prices. Chances are that the prices cannot be as low as they are currently by the end of the year. An important point to note from the ruling is that it is not just Chinese made solar panels that will be affected. A good proportion of US made solar panels are assembled from Chinese supplied solar cells and they will similarly be affected. The same will apply from solar panels assembled in other countries from solar cells made in China.
This is only a preliminary ruling that follows hard on the March 2012 decision that set up a series of countervailing duties on Chinese solar panels ranging from 2.9 percent to 4.7 percent. It is expected that there may be further duty impositions to be determined later in May 2012.
So does this ruling spell a death knell to the era of cheap solar panels in the United States? Many would say quite likely but not definitely. Prices are likely to rise marginally in all likelihood taking into consideration the extent to which the American industry has come to rely on Chinese supplies.
Environmentalists were largely disappointed at the implications of the ruling. They contend that this amounts to a blow in the face to such a promising renewable energy alternative as solar energy at a time when it was becoming competitive with oil and coal.
Speaking about the announcement which has caused jitters in the industry, the Solar Systems USA CEO, Nathan Thompson was keen to assure customers. "Our commitment to provide customers with low priced solar panels and solar kits stands as firm as ever. However, future prices are out of our hands. We cannot determine if Department of Commerce will enforce this ruling or whether other punitive tariffs are on the way. The best we can assure our customers is to make their orders as early as possible."