US solar sector says Trump tariffs will kill American jobs

Shunfeng International Clean Energy

23/01/2018 18:49

By Nichola Groom 
    LOS ANGELES, Jan 23 (Reuters) - President Donald Trump's 
move to slap steep tariffs on imported panels will kill tens of 
thousands of jobs, raise the cost of going solar and quash 
billions of dollars of investment, the U.S. Solar Energy 
Industries Association warned on Tuesday. 
    The criticism from the industry's top trade association 
raises questions about whether Trump's tariff, billed by the 
administration as a move to protect U.S. manufacturing jobs, 
will backfire by forcing layoffs in what had been one of the 
energy industry's fastest growing sectors. 
    "We are not happy with this decision," SEIA President 
Abigail Ross Hopper said on a conference call with reporters. 
"It's just basic economics -- if you raise the price of a 
product it's going to decrease demand for that product." 
    The administration announced the tariffs on imported solar 
panels, as well as washing machines, on Monday. The 30 percent 
tariff on imported panels in the first year will decline over 
four years, and 2.5 gigawatts of solar cell imports will be 
exempted each year. There is still uncertainty on when the 
tariffs will be imposed. urn:newsml:reuters.com:*:nL2N1PH1WV     
    The tariffs could decrease the projected 11 gigawatt of 
solar forecasted to be installed in the United States this year 
by 2 GW, Hopper said, and result in 6.7 GW less solar over the 
four years of the tariffs' implementation. 
    "It means billions of dollars of lost investment, 1.2 
million homes that won't be powered by solar," Hopper said. 
    SEIA also expects the decision to cause the loss of 23,000 
jobs this year, with more losses in subsequent years. The U.S. 
solar industry employs more than 260,000 workers - about 
five-times more than the coal industry. 
    Only about 14 percent of those 260,000 jobs are in 
manufacturing. Installers make up most of the rest of the 
industry and rely on low-priced imports. 
    The petitioners who sought trade relief, U.S.-based solar 
manufacturers Suniva and SolarWorld, had asked for the 
equivalent of a 50 percent tariff.  
    Bankrupt Suniva, majority-owned by Hong Kong-based Shunfeng 
International Clean Energy  1165.HK , and SolarWorld, the U.S. 
arm of Germany's SolarWorld AG  SWVKk.F , had said they cannot 
compete with the influx of cheap imports which has caused panel 
prices to fall more than 30 percent since 2016. 
    In a note to clients, Raymond James analyst Pavel Molchanov 
said the 30 percent tariff, while not ideal, would be 
"manageable" for most of the industry. He estimated that it 
would increase the cost of a residential system by about 3 
percent, and boost the price of a utility-scale project by about 
10 percent. 
    SEIA, which spent nine months lobbying aggressively against 
trade remedies, acknowledged the outcome was better than feared 
for the industry, but still damaging.  
    "This administration really grappled with the understanding 
that solar is creating jobs," Hopper said, "It does show 
restraint on the part of the president." 
 
    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 
U.S. solar panel import tariff to hit European, Asian 
manufacturers     ID:nL4N1PI2DF  
Asia fears U.S. tariffs on washing machines, solar panels just 
the start     ID:nL4N1PI1AV  
Outlook for China solar industry darkens after U.S. tariff 
decision -govt      ID:nL4N1PI3Y0  
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> 
 (Reporting by Nichola Groom; Editing by Susan Thomas) 
 ((nichola.groom@thomsonreuters.com;)) 
 
Keywords: USA TRADE/TARIFFS SOLAR JOBS