U.S. solar demand could drop 66 pct if trade case succeeds -report

Shunfeng International Clean Energy

26/06/2017 13:00

By Nichola Groom 
    June 26 (Reuters) - The U.S. solar industry would see 
two-thirds of expected demand dry up over the next five years if 
a trade case aimed at propping up the domestic panel 
manufacturing industry is successful, a new report said on 
Monday. 
    The utility-scale solar industry, which accounts for more 
than half of U.S. installations, would be hit hardest if 
Washington adopts the hefty remedies sought by bankrupt solar 
panel maker Suniva. That is because large projects depend on 
being cost-competitive with natural gas-fired plants to spur 
buying, research firm GTM Research said in their analysis. 
    "This is arguably one of the biggest downside risks to the 
future of U.S. solar," GTM's associate director of U.S. solar, 
Cory Honeyman, said in an interview. 
    In April, Suniva filed a rare Section 201 petition with the 
U.S. International Trade Commission nine days after seeking 
Chapter 11 bankruptcy protection. In the petition, the company 
asked for new duties on imported solar products to combat a 
global glut of panels that has depressed prices and made it 
difficult for American producers to compete. 
    Suniva was founded in Georgia but as of 2015 is majority 
owned by Hong Kong-based Shunfeng International Clean Energy 
 1165.HK . It was joined in the petition by another domestic 
manufacturer, the U.S. division of Germany's SolarWorld 
 SWVKk.DE . The German company filed for insolvency last month. 
    Suniva is seeking a duty rate of 40 cents per watt on solar 
cells and a minimum price on modules of 78 cents a watt for the 
first year, levels unseen since 2012, according to GTM. 
    Between 2018 and 2022, U.S. solar installations would fall 
from 72.5 gigawatts to 36.4 GW with a minimum module price of 78 
cents a watt, GTM said. If a 40 cent cell tariff were 
implemented as well, installations would drop to 25 GW during 
the period. 
    The U.S. ITC will decide by September whether imports are 
causing harm to domestic producers. If it does find serious 
injury to the industry, by November the commission will 
recommend remedies to President Trump, who then makes a final 
decision. Trump could accept the ITC's recommedation or do 
something else entirely. The final outcome could vary greatly 
from Suniva's suggested remedies. 
    The Solar Energy Industries Trade Association, the U.S. 
solar trade group, is opposed to Suniva's petition. The group 
said last week that an estimated 88,000 jobs would be lost if 
the trade protections Suniva is seeking are imposed. 
 
 (Reporting by Nichola Groom; Editing by David Gregorio) 
 ((nichola.groom@thomsonreuters.com;)) 
 
Keywords: USA SOLAR/TRADE