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What is the effect of Solar PV Market in America from New Trade Barrier ?

Publish Time:2017/08/05 Industry Dynamic View:518

Suniva is a manufacturer of solar cells and solar modules in United States, the company has declared to bankrupt, under its petition, United States International Trade Commission (ITC) may implement more severe trade barrier to the import of solar pv products in the Autumn of this year. This possibility makes other Countries PV manufacturers and United States’ project developers feel uneasy. China’s PV manufacturers would be positive to adjust operation mode to minimize the effect caused by the new trade barrier.

On April,2017, Suniva submitted petition to ITC according to the 201 Item of United States’ 《Trade Act of 1974》, claim to levy high tariff to all of crystalline silicon PV solar cells imported into United States. SolarWorld company join in this petition, ITC start to make survey after then.
Nevertheless, even if Suniva and SolarWorld win the lawsuit, solar pv modules also can avoid high tariff so long as solar cells manufactured in United States. Meanwhile, China’s PV companies also can invest factories of solar cells in United States, transporting solar cells out of United States to assemble, then export to America.
Although still didn’t find China’s PV companies built factory in America, there are at least two China’s PV companies looking for factory site so far. To build one 1GW factory of solar cells in Asia, the fastest time need 7 months, it need about 1 year or more time to build in United States.
Take an assumption, if China build GW Level factory of solar cells in United States, it start to produce in 2019, then transporting solar cells to Southeast Asia or Mexico to assemble, the price of solar pv modules which is transported to other Counties to assemble is more 3.0 cents per watt than those solar pv modules assembled in Southeast Asia. If this additional cost is average covered to unit solar products, the price of solar module which is sold in United States would be increased about 10%.
If ITC confirm import of solar pv modules having damaged to internal national market after survey, and don’t ask for retroactivity punishment, the solar pv import would be improved increasingly shortly in United States. This increasing includes the solar stock which is prepared by China’ manufacturers for sale in 2018. Sunpower, which is an American company, might perform the same measure because its factory is in Malaysia and Mexico. Another American solar pv company, First Solar, wouldn’t be effected by Suniva’s petition because its solar products don’t belongs to crystalline silicon solar products.
It would have negative effect to downstream market of American solar power as long as the price of solar pv modules having increasing, especially in short time. But the tax exemption of United States and enterprises’ profits can afford this additional cost. American tax exemption of solar pv investment and accelerated depreciation can afford more than half of this additional cost.

Bingsolar Power, 5th, August, 2017

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