Price Wars Seen Hurting Solar Sector in China

The following is an excerpt from an article in 

The New York Times
Wednesday, August 22, 2012

Price Wars Seen Hurting Solar Sector in China

By KEITH BRADSHER

GUANGZHOU, China — China’s solar panel manufacturers, who dominate global sales with a two-thirds market share, are confronting growing trade and financial problems, a Chinese industry official acknowledged Tuesday, shortly before one of the industry’s largest companies, Trina Solar, announced weak results for the second quarter.

The Chinese manufacturers “face challenges of decreasing margins, decreasing exports, lack of capital, protectionism and an external environment that continues to deteriorate,” said the official, Chen Huiqing, the deputy director for solar products at the China Chamber of Commerce for Import and Export of Machinery and Electronic Products.

The United States Commerce Department has already imposed preliminary antidumping and antisubsidy tariffs on Chinese solar panels totaling more than 33 percent, although the tariffs are subject to a review by the department this fall that could raise, lower or even repeal them. A coalition of solar manufacturers in Europe has asked the European Union to impose antidumping tariffs.

Ms. Chen, who was the lead speaker Tuesday morning at the Guangzhou International Solar Photovoltaic Exhibition here in southeastern China, said that a team of representatives from the Chinese industry is in Brussels to try to persuade European officials not to start a trade investigation into Chinese solar panels in the coming weeks.

For more, visit www.nytimes.com.

A Measured Rebuttal to China Over Solar Panels

Excerpt from an article in

The New York Times

March 21, 2012

A Measured Rebuttal to China Over Solar Panels

By KEITH BRADSHER and MATTHEW L. WALD

The Commerce Department said on Tuesday that it would impose tariffs on solar panels imported from China after concluding that the Chinese government provided illegal export subsidies to manufacturers there.

The tariffs were smaller, at 2.9 to 4.73 percent, than some American industry executives had expected. At that size, their effect on the market could be limited. But additional tariffs could be imposed in May, when the Commerce Department is scheduled to decide whether China is “dumping” solar panels into the United States at prices below their actual cost. A finding of dumping would result in additional tariffs that could be far larger than these.

But whatever the size of the penalties, Tuesday’s ruling is likely to further heighten trade tensions with China, and to have implications for renewable energy policy in this country.

Although the ruling is the result of a quasi-judicial review process by civil servants in the Commerce Department, the imposition of tariffs by an arm of the Obama administration also seems certain to enter the partisan fray.

The president’s supporters might point to it as evidence that he continues to play tough with Beijing. But opponents, including the Republican presidential candidate Mitt Romney, who are already criticizing Mr. Obama for what they say is a low level of attention to China trade issues, might call the small penalties insufficient.

The Commerce Department declined to comment Tuesday.  

From the U.S. Dept. of Energy's National Renewable Energy Laboratory (NREL):

Lease Option Increases Rooftop Solar’s Appeal, Study Says Low Down Payment, Immediate Savings, Lure a New, Less Affluent Demographic Friday, January 20, 2012 Rooftop solar panels are attracting a new demographic of customers who are choosing to lease rather than buy, and enjoying the low upfront costs and immediate savings. The new third-party-lease business model lets homeowners save money the very first month, rather than breaking even a decade later after an initial investment of $10,000 or $20,000. Analysts with the U.S. Department of Energy's National Renewable Energy Laboratory (NREL) found that the solar lease models are surging in southern California. And they're being adopted in less affluent neighborhoods that had few customer-owned systems. The NREL study, "The Transformation of Southern California's Residential Photovoltaics Market through Third-Party Ownership," is in the current edition of the journal Energy Policy. The study indicated an attraction for third-party leasing in neighborhoods with less affluence than those most likely to go for the customer-owned option. It found a positive correlation between customers outright buying solar energy systems and customers living in neighborhoods where the average household income was $150,000 or more. But with third-party-leased photovoltaic (PV) panels, that positive correlation appeared in neighborhoods where the average household income was just $100,000 or more. If what's true in southern California proves true for the nation, it means that rooftop solar power could prove tempting for an additional 13 million Americans who live in households that earn between $100,000 and $150,000 per year. "What is so interesting about the southern California data is that the strong decrease in PV prices – from lower retail costs and stronger federal incentives – didn't pick up a new demographic. But the new business model – leasing – did pick up a new customer demographic," NREL's Easan Drury, the lead author of the report, said. Repackaging the value of photovoltaics as a simple savings on the monthly bill is an attractive alternative to the pitch that it will pay for itself in a decade, he said. "If someone comes up to you and says you can make money next month and forever, that totally changes how people see the value of solar." Among Drury's other findings: Third-party leasing usually eliminates the need for home-equity-style financing and, thus, the need for significant equity in the home. Without the hurdle of financing, more people can adopt solar, Drury said.  Along with the lower income threshold, Drury found a surge in solar leasing in neighborhoods with younger families. In the Los Angeles and Orange county markets, customer-owned PV was five times more prevalent than third-party owned in 2009. In 2010, the ratio had dropped to 2 to 1. And for the first quarter of 2011, the ratio was almost even. Homeowners can put as little as $3,000 down and see an immediate drop in their electricity costs,  albeit that first year the drop may be just a couple dollars a month. The real benefits come over the next two decades, when the $40 or $50 per month they're paying to lease the solar panels stays constant, while, presumably, the cost of electricity goes up. Third-party companies are touting potential customer savings of $10,000 to $15,000 over two decades. NREL is the Department of Energy's primary national laboratory for renewable energy and energy efficiency research and development. NREL is operated for DOE by The Alliance for Sustainable Energy, LLC. ###

Library Patrons in New York Check-Out Renewable Energy

The following was gleaned from a December 27 blog post on the U.S. Department of Energy's web site.

Library Patrons in New York Check-Out Renewable Energy

December 27, 2011

 

The public library in Esopus, New York, used Recovery Act funds to install two photovoltaic arrays expected to generate 31,200 kWh of electricity annually -- approximately 30 percent of the library’s electricity use and a savings of nearly $4,000 in energy costs each year. | Photo courtesy of New York State Energy Research and Development Authority (NYSERDA).

Julie McAlpin

Communications Liaison, State Energy Program

In a hamlet on the Hudson River in upstate New York, two newly installed photovoltaic arrays at the local library are generating electricity, interest in renewable energy, and community pride.

Recognizing its role as an educator and community leader, the Esopus Library used a $96,790 award from the Recovery Act to install the 22.5kW roof-mounted and 5.5kW ground-mounted photovoltaic systems.

The new solar system is expected to generate approximately 31,200 kWh of electricity annually -- approximately 30 percent of the library’s electricity use and a savings of $4,000 in energy costs each year.

The ninety-six 230-watt Sharp® photovoltaic panels, made in Memphis, Tennessee, along with the PVPowered™ 30 kW inverter and rooftop DPW Solar Mounting System were installed by a crew of eight electricians over a period of three days.

After completing the 22.5kW roof system, the city still had funds to spare. In turn, the library worked with NYSERDA to modify the project contract and spend the remaining money to add the 5.5kW ground system. The unexpected second array will deliver approximately 120 percent of the electricity that the grant was based on, while still staying within the original cost.