But many of the leading Chinese manufacturers are adamant that they haven’t been dumping their products and they are publicly confident that the final numbers will in fact be lower than what we saw Thursday.

For an industry desperately seeking clarity, the notion that the issue is not really resolved underscores the bitter divide that’s been drawn and the enormous scale of what’s at stake.

The preliminary rulings for both the lower countervailing duties (CVD) and the much steeper anti-dumping duties will go through further Department of Commerce (DOC) scrutiny, and Chinese manufacturers are sure to make the case that the numbers are higher than they ought to be, while SolarWorld will argue they are still too low. The rate at which tariffs are initially set often differs from the final determination, so there is still a lot of push and pull to be had.

According to Vishal Shah of Deutsche Bank, this process is currently unfolding for the CVD case with the DOC investigating glass subsidies and potentially excessive rebates of value added tax.

The issue has dominated the solar landscape from American rooftops to Chinese production lines. And it’s been watched intently across boardrooms in Europe and even in growing markets like India, whose domestic solar manufacturers are also having trouble competing on price in an industry increasingly dominated by China.

Thursday’s ruling and reaction indicate how Chinese and domestic companies alike view the lucrative American solar market. The U.S. installed just shy of 2 gigawatts of solar in 2011 and barring a repeal of the Investment Tax Credit (ITC), most analysts see significant growth ahead — even without the recently expired 1603 grant. The basis for much of this growth — past, present and certainly future — has been low-cost Chinese panels that have dominated the market at the expense of American producers.

For Trina Solar, the world’s fourth largest supplier of PV modules, the American market is labeled as “strategic,” meaning it expects it to sustain itself without the need for subsidies within the next three to five years.

“Our investment in the U.S. won’t get smaller,” said Mike Grunow, Trina’s Marketing Director for the Americas. “We’ll be here in a major way and we’re very bullish on this market.”

In Search of Winners

A day after the announcement, the industry is grappling with a new reality. What will change because of these tariffs. Will America become a manufacturing leader because of this? How will these changes impact price and installation? And how will China respond?

Tony Clifford, CEO of developer and EPC contractor Standard Solar, isn’t so sure higher prices will do anything to significantly help American panel manufacturers. There will be winners, he said. But they’re just as likely to be panel makers based in Japan, Korea and other countries where large-scale operations are starting to thrive.

“Chinese companies are not the only foreign manufacturers shipping cells and modules to the United States,” he said. “I’m sure that solar manufacturers in other Asian and European countries will be able to profitably offer solar modules in the U. S. market at prices well within the ‘cost-plus-31-percent-tax’ that will be applied to Chinese modules.”

He also noted that the industry has a real deadline hanging over its head, and that’s the time left before the federal ITC expires at the end of 2016. He fears the trade dispute has distracted the industry from its collective objective — to become cost-competitive without subsidies in key markets within the next four and a half years.

“If we don’t, it will not matter who wins or loses a trade war in 2012,” he said.

Brinser said SolarWorld should benefit from the new tariff and that prices industrywide will likely go up, but that ultimately the free market will decide on pricing. He admits that while the intent was to eliminate practices that harm American manufacturers, companies outside the U.S. are just as likely to benefit from the ruling and fill the capacity gap.

What Happens Next?

Analyst Jesse Pichel of Jeffries expected that a ruling of at least 15 percent would have pushed Chinese manufacturers to shift production to a third party country. That the tariff is currently twice as high only makes such a move that much more financially appealing. As the ruling reads, cells imported into China and turned into modules will not be subject to the tariff. The likely beneficiary would be Taiwan, though Pichel warned the new demand itself may increase the pricing of cells coming out of that country.

Grunow said Trina, which because of its size has a well-established global supply chain, is prepared to “comply with the ruling and get the best price for our customers.”

Chinese companies may also choose to set up manufacturing operations close to the American market. Jinko Solar and Canadian Solar have facilities north of the border and Suntech has a facility in Arizona. Mexico, meanwhile, could be a possibility for Chinese companies looking to build operations capable of serving the North American market.

However, the New York Times cited an anonymous Chinese banker as saying such a shift in production won’t be so easy. The source told the paper that state-owned banks are reluctant to continue the heavy lending that has spurred an industry-wide overcapacity.

Brinser noted that his company will work with federal officials to ensure that any method Chinese companies use to avoid the tariffs be through legal means. “We’ll be monitoring it pretty closely,” he said.

The Political Fallout

Politics have always been at the center of this debate. Even before SolarWorld officially filed the complaint, its hometown senator, Ron Wyden, a Democrat, wrote a letter to President Obama urging legal action aimed at China’s solar policy. Obama himself, shortly after the investigation launched, condemned China’s trading practices and began laying the groundwork for a new election year push to bring solar manufacturing jobs back to America.

Sen. Sherrod Brown, D-Ohio, has long been a vocal advocate of the need for America’s solar industry to be supplied predominantly by American-made products. He and colleague Sen. Charles Schumer, D-N.Y., this week introduced legislation that would exclude Chinese solar panels that do not meet a domestic requirement from qualifying for the 30 percent ITC. Chances are the measure won’t go far, but it does serve to heighten the rhetoric that continues to heat up between Beijing and Washington.

According to China Daily, the nation’s Ministry of Commerce called the ruling “trade protectionism” and “unjustified.” MOC spokesman Shen Danyang also alleges that U.S. officials disregarded evidence supplied by the Chinese companies that would have impacted the dumping margins.

“The big question now is how the Chinese will respond,” said Chris Brown, an analyst with Asia Cleantech Gateway. “I expect to see increased tariffs on U.S. polysilicon [going into China].”

Pichel agrees, saying such a move may disrupt global pricing. And the ruling could broaden the dispute to include Europe. Reports earlier this year indicated that SolarWorld in Germany was working to drum up industry support for a European Union-based trade investigation.

But so far, no trade complaint has been filed as the global solar industry watches to see how the U.S.-China dispute unfolds.

Article source: http://www.renewableenergyworld.com/rea/news/article/2012/05/will-chinese-solar-module-tariffs-restore-balance-to-the-industry?cmpid=rss

“Clean our cloud!”

This protest is just a small part of what Greenpeace has been campaigning for months: How Clean is Your Cloud? According to its report, most major tech companies rely on coal to power their data centers and manufacturing – Apple scored a “D” on its renewable score sheet, while Google and Yahoo led the clean energy movement in the sector, scoring an “A” and “B” respectively, in both usage and policy support. And despite a relatively flat national electricity demand over the past year, data center electricity demand increased 19 percent in 2012 to 31 GW globally, with $450 billion spent annually on new centers.

In response to this outcry, Apple announced yesterday that its new data center in Malden, North Carolina, which will draw about 20-MW of power at full capacity, would be powered by 100 percent renewable energy, with 60 percent coming from onsite solar and fuel cells. According to its website, Apple is currently building two solar installations – a 20-MW project on 100 acres near its data center and another 100-acre installation a few miles away. Apple is also building a 5-MW biogas-powered fuel cell set to come online later this year.

Apple’s renewable plans at the Malden, North Carolina site

The remaining 40 percent of renewable power will be purchased from local and regional sources. To encourage renewable growth in the region, Apple partnered with NC Greenpower, a local organization committed to increase renewables in the state, and is already working to generate electricity from methane gas at a local landfill.

According to Apple, “Adding renewable energy sources like these displaces dirtier energy sources from the grid. Directly purchasing clean local energy gives us the flexibility to meet our needs over time, helps us to ensure that our sources are reputable and responsible, and encourages local investment in renewable projects such as wind, solar, and bio-gas power in locations best suited for these resources.”

In addition to its Malden facility, Apple plans to fully power with renewables its facilities in Prineville, Oregon and Newark, California by February 2013.

Image: 96513937 via Shutterstock

Article source: http://www.renewableenergyworld.com/rea/news/article/2012/05/apple-to-power-3-data-centers-with-100-percent-renewable-energy?cmpid=rss

The panels will generate more than 2.3 million kilowatt-hours of renewable energy annually, or 50 percent of the communities’ energy needs. They will help offset more than 80 million pounds of annual carbon dioxide emissions, the equivalent of taking approximately 7,000 cars off the road for a year.

“Sustainable living is central to our company philosophy and business practices, and we are pleased to find that our residents are equally as passionate about the concept. Shifting consumption towards clean energy will further our mission to be a leader in regenerative practices by using renewable sources to limit carbon emissions and reduce overall energy costs, which in turn allows us to provide our residents with cleaner, more energy efficient housing,” said Ted W. Rollins, Co-founder and Chief Executive Officer of Campus Crest.

Article by Antonio Pasolini, a Brazilian writer and video art curator based in London, UK. He holds a BA in journalism and an MA in film and television.

Article source: http://blog.cleantechies.com/2012/05/18/student-accommodations-to-be-powered-with-solar-energy/

Learn everything you need to know about giving solar presentations this fall with NLP Solar Sales Training.

The NLP Solar Sales Training course covers important steps in the solar sales process including: understanding photovoltaics, system sizing, making the sale, and emerging trends in the solar industry.

This live online webinar—which you can attend from the comfort of your home—provides all the information necessary to do a PV solar system estimate and explain the benefits to a homeowner.

• Discover the 18 questions you must ask before presenting solar
• Quickly create solar estimates
• Confidently explain the math behind the financial benefits of solar
• Give a killer solar sales presentation
• Uncover the top 5 reasons homeowners buy solar
• Samurai objection handling techniques
• 21 solar technical terms to learn
• Solar sales kit check list
• Estimate presentation calculations provided in Excel
• Customizable PowerPoint presentation

Optional 1-on-1 sales marketing coaching.

Our next Webinar course will take place on Wednesday Thursday, May 30th 31st, from 8:00AM-12:00PM PST. Visit our NLP Solar Sales Training website to learn more about the webinar, but sign up fast—class size limited!

Article source: http://www.renewableenergyworld.com/rea/partner/rich-hessler-solar/news/article/2012/05/nlp-solar-sales-training4?cmpid=rss

Solid and rising Denver solar integration company needs a Lead
Electrician PV Installer. This position is primarily responsible for the
AC installation of the PV project taking account for the proper
location and tie in of the service disconnects, meter housings, testing,
wiring runs and related system components.

RESPONSIBILITIES:
• Lead and train crews PV installation implementation, particularly the AC components
• Follow system design specifications insuring quality AC installations
• Problem solve system layouts when field decisions and adjustments are necessary
• Organize and recommend proper team and resources for the project
• Ensure that BOS installation meets AHJ code requirements and quality standards
• Manage installation documentation on all projects
• Ensure crew and job site safety
• Manage specialty resources, tools vehicles and other company property

ESSENTIAL KNOWLEDGE, SKILLS, AND ABILITIES:
• Must have a RW or Journeyman Colorado Electrical License
• Expert understanding of relevant Residential and Commercial Electrical
Code including wiring, sizing conduit, sizing wire, and bending conduit
• Understanding of PV solar installations
• Must be able to lift 50lbs, climb ladders, and work on roof tops in Colorado conditions.
• Ability to read, understand, and edit electrical and structural plans
• Effectively lead, coordinate and communicate with others
• Other relevant certifications are desirable.
• Can do attitude.

COMPENSATION AND TERMS
• Position is full-time
• Wage range is $19-24/hr (depends upon experience)
We are a proud Colorado based company and we offer a competitive total
compensation package, and a family-oriented work environment. We are a
Can Do company and have resources to extend our boundaries. Our
benefits include Medical, Dental, Vision, Disability and Life Insurance,
Paid Time Off, 401(k) plan and more. Applicants selected for
employment will be required to undergo and pass a pre-employment
background check and drug screening.
We are an Equal Opportunity employer and comply with all federal and
state laws and regulations regarding equal employment opportunity.

• Location: Denver, CO
• Compensation: $19 – $24/ HR

Article source: http://www.solarpowerbuzzmedia.com/2012/05/jobs-in-solar-pv-solar-electric.html

While some have questioned the report’s details, it nonetheless highlights an important issue. Major IT and cloud computing companies have been working to improve energy efficiency in their data centers, and yet mitigation of GHG impacts from power use has lagged.  This matters, because recent growth of the internet and cloud-based computing is resulting in rapid proliferation of data centers and massive incremental power requirements. 

To date, the cost and availability of power have been primary concerns for operators when siting data centers. Green power options for data centers have been low on the priority list, or otherwise deemed impractical, expensive, or geographically limited.

Yet going forward, is a natural match emerging for data centers and green power? After all, there is flexibility in siting data centers, especially when compared to other types of industrial facilities. Incremental power requirements from new data centers are large and physically concentrated.  At the same time, the IT industry is sensitive to consumer opinion, and is increasingly influenced by data center efficiency and carbon intensity metrics.  And as noted in a recent Rackspace Survey, sustainability is now important to a significant majority of hosting service customers and is a factor in purchasing decisions. Finally, an emerging set of solutions is making green power a more realistic option for many new data centers.

IT companies are currently exploring a wide range of green power solutions, including sourcing cleaner forms of energy from utilities and energy suppliers, purchasing renewable energy, and deploying onsite renewable energy systems.

Energy Use in Data Centers

Data center energy use now accounts for approximately 1.7-2.2% of U.S. electricity consumption.  This power requirement was estimated to be on the order of 75 million megawatt hours in 2010, according to consulting Stanford professor Jonathan Koomey. The vast majority of this power currently comes from the utility electric grid, and the GHG intensity of grid electricity varies by as much as 500% – depending upon whether power is coming from clean hydro-based or dirtier coal-fired generating stations. With demand for cloud services and digital information provided by data centers expected to grow exponentially, IT companies are investing billions of dollars in new data centers.

Data center energy use requirements are highly intensive and continuous – traditionally a difficult match for many green energy sources.  That said, meeting growing energy demands and reducing GHG emissions from data centers will require IT and cloud computing companies to adopt an ‘all-of-the-above’ energy strategy—comprising of a combination of different green power approaches and energy efficiency initiatives.

New Data Center Energy Use Metrics

The expanding view of data center energy use has led companies to adopt new metrics for measuring their computing facilities. Power Usage Effectiveness (PUE), which is total facility power divided by IT equipment power, is now a common efficiency metric for data center operators. However, PUE does not address carbon emissions from a data center’s energy consumption. Even the most energy efficient data center can be powered by fossil fuels and produce significant carbon emissions. 

In response, The Green Grid has established Carbon Usage Effectiveness (CUE) as a metric by which data center operators can gauge the intensity of their carbon emissions per kilowatt-hour of energy used. It also allows them to evaluate the impact of different energy sourcing options, whether it is electricity from the grid or an onsite renewable system.   Together, the CUE and PUE metrics help describe a data center’s relative energy efficiency and emissions intensity. 

The ideal “green data center” is extremely energy-efficient, with a low PUE, high asset utilization, and a low CUE through use of green power.  Thus, environmental impacts are mitigated from two essential angles — through a high degree of energy efficiency and the use of clean energy. 

Clean Energy Options for Data Centers

IT and cloud computing companies have three primary avenues for sourcing cleaner energy for their data centers: procure clean energy from the local utility, purchase energy from offsite renewable energy resources, or deploy onsite renewable energy system(s). 

Procuring Electricity from the Grid

IT companies looking to reduce carbon intensity benefit from siting their data center in the service area of utilities that utilizes renewable sources of power.  Additionally, many local utilities now offer the option to purchase green power. And in some markets, companies can elect to buy power from an alternative energy supplier that offers green power.  

Utility Green Power Mix –As previously mentioned, carbon intensity of electricity provided through the grid varies substantially.  For example, siting a data center in Washington State with access to clean, low cost hydroelectric power rather than Utah, which relies primarily on coal, can significantly reduce resulting carbon emissions. By making the GHG intensity of grid power a factor in data center siting, companies can significantly reduce the emissions potential of a prospective facility.   

After Greenpeace’s “unfriend coal” campaign, Facebook adopted a siting policy that gives preference to states with access to a clean renewable energy supply.  Recently, Facebook chose to site their third major data center in Lulea, Sweden because of the large amount of available hydroelectric capacity.  Yahoo, Inc.’s decision to construct a data center in Locksport, NY was influenced by their ability to procure 15 MW of hydroelectric power from the New York Power Authority.

Utility Green Power Purchasing Programs – Some utilities offer customers the ability to purchase energy from renewable sources at a premium. Utility programs are convenient, as they combine green power purchases and electricity services into one bill and often source green power locally from within the their service area.  As an example, Green House Data in Wyoming is using wind energy provided by its local utility, Cheyenne Light, Fuel and Power, to meet 100 percent of their 10,000 sq. ft. data center’s energy needs. 

The downside to utility programs is that customers are limited to the options offered by the utility, and not every utility provider offers a green power purchase program.  Also, these programs charge an incremental price for clean energy, so there is not a direct savings opportunity. 

Purchasing Energy from Renewable Sources

While utility-provided green power options are expanding, they are still limited to specific geographic areas and utility districts.  And it is unlikely that any utility will by completely powered by renewable energy in the near future.  Therefore, some IT companies are electing to purchase renewable energy directly through competitive retail markets, power purchase agreements, and/or renewable energy certificates (RECs). 

Competitive Retail Markets – In the handful of states with competitive or restructured retail electricity markets, data center operators can purchase electricity from alternative electricity suppliers that offer greener power.  The number of states with retail markets and the amount of competitive green power suppliers is limited but growing, particularly in Texas, where 69 green power offerings were available as of September 2011.

Power Purchase Agreements - A number of IT companies are signing long-term power purchase agreements (PPAs) to procure energy from renewable energy systems. Such PPAs help renewable energy developers to obtain preferential financing, and allow customers to purchase energy at set rates, typically below utility electric prices.  Companies can sign PPAs for onsite or offsite renewable solutions.  PPAs require that the customer organization has excellent credit, and is willing to sign a long-term contract.

Google is an excellent example of a company using PPAs to procure clean energy for new data centers.  Google has signed two 20-year PPAs with wind farm developer NextEra Energy, to purchase more than 100 MW of power for each of their data centers in Iowa and Oklahoma. Energy from the wind farms are provided to the local electric grid and sold to the local utility, while Google retains the renewable energy certificates (RECs) and applies them to energy used at their data centers.  By signing a long-term PPA, Google has provided NextEra Energy with a secure revenue source, which allows them to obtain financing and helps to stimulate demand for more renewable energy. 

Courtesy: Google

Renewable Energy Certificates (RECs) - Renewable energy certificates (RECs) represent the environmental attributes of the generation and delivery of 1 megawatt-hour of green power to the U.S. Grid.  RECs have become a popular option for easily and inexpensively offsetting emissions from data center electricity use. Leading IT companies Intel, Microsoft, Cisco, and Dell are among the top purchasers of RECs. In fact, Intel is top green power purchaser in the U.S., purchasing more than 2.5 million MWh to meet 88 percent of its total electricity use.  Datapipe, Inc., a cloud computing company, has purchased more than 56 thousand MWh of RECs to offset the emissions associated with the electricity consumed by its U.S. offices and data centers. 

However, RECs represent an incremental cost for companies, versus potential energy cost savings. RECs can be sourced locally or nationally, meaning that there may or may not be local environmental benefits from the purchase of RECs. Currently, the cost of RECs is very low by historic standards, and critics of RECs are questioning “additionality”, the impact of RECs in supporting new renewable energy developments. 

In part 2 of this article we will discuss the onsite renewable options available to data centers. Stay tuned…

Article source: http://www.renewableenergyworld.com/rea/blog/post/2012/05/are-it-data-centers-emerging-as-a-killer-app-for-green-power-part-1?cmpid=rss

A final determination must still be made, and the tariff rates can still be adjusted upward or downward. But the ruling gave an anxious industry a better sense of the implications of the trade case. And the numbers that came out were much higher than many expected.

Thursday’s announcement was for anti-dumping tariffs and it was the second of two duties set by the DOC that directly stemmed from a trade complaint filed by SolarWorld’s American subsidiary. DOC officials will now confirm the information provided by the Chinese government and the Chinese manufacturers that chose to participate. Final determinations are expected to be made for both tariffs in late July, though an annoucement may not come until September.

In March, the Department of Commerce announced a preliminary determination that set relatively modest countervailing duties that essentially measure the level of subsidies and benefits coming from the Chinese government to Chinese crystalline silicon panel manufacturers. The countervailing duties were applied on three levels: 4.73 percent applied to Trina, 2.9 percent to Suntech, and 3.59 percent to all others. That had been a welcome relief for many in the solar industry, especially the installers who have come to base their business models around low-cost panels. But the feeling was short-lived with the announcement of the countervailing tariffs, which will be added to the anti-dumping tariffs announced on Thursday.

The two together are certain to make Chinese solar panels much more expensive. The ruling could add about $0.30 a watt to the price of a panel. Chinese companies are expected to set up workarounds like tolling in which they send panels through another country, or even set up remote manufacturing facilities outside their country. Tolling is expected to add about $0.06 to $0.08 per watt.

The Background

In a trade complaint filed in October, SolarWorld’s American subsidiary and six other solar panel manufacturers claimed that Chinese companies are receiving an unfair level of subsidies from the Chinese government and that they are then dumping their products at below the cost of production into the American market. This, they contend, is stifling solar panel manufacturing in the United States. The case made by the Coalition for American Solar Manufacturing (CASM) has been folded into the growing political narrative that America must reclaim its ability to lead in the global arena of manufacturing and innovation.

On the other side, the Coalition for Affordable Solar Energy (CASE) says that the overriding goal is to make solar energy as competitive as possible. Low-cost Chinese panels have figured prominently in this race to make solar energy competitive with fossil fuels. Panel prices have dropped by 50 percent in just the past year, and that growth has spurred an installation boom that many in the industry feel is unsustainable if prices spike.

Industry Reaction

• Jigar Shah, President of CASE: “Today SolarWorld received one of its biggest subsidies yet – an average 31% tax on its competitors. What’s worse, it will ultimately come right out of the paychecks of American solar workers. Fortunately, these duties are much lower than the 250% tax that SolarWorld originally requested. This decision will increase solar electricity prices in the U.S. precisely at the moment solar power is becoming competitive with fossil fuel generated electricity. At the same time, CASE recognizes that today’s decision is ‘preliminary.’ Between now and a final decision before the end of the year, there are many issues that will be addressed and whose resolution would lead to a significantly lower tariff. CASE will continue to fight SolarWorld’s anti-consumer and anti-jobs efforts to ensure a better result for America’s solar industry.”
• Rhone Resch, President and CEO of the Solar Energy Industries Association: “The solar industry calls upon the U.S. and Chinese governments to immediately work together towards a mutually-satisfactory resolution of the growing trade conflict within the solar industry.  While trade remedy proceedings are basic principles of the rules-based global trading system, so too are collaboration and negotiations. Importantly, disputes within one segment of the industry affect the entire solar supply chain — and these broad implications must be recognized. In addition, the U.S. solar manufacturing base goes well beyond solar cell and module production and includes billions of dollars of recent investments into the production of polysilicon, polymers, and solar manufacturing equipment, products which are largely destined for export.  If the U.S.-China solar trade disputes continue to escalate, it will jeopardize these U.S. investments.”
• Gordon Brinser, President of SolarWorld: “Today, SolarWorld and the many industry players who embrace the sustainable efficiency gains and price declines that come from fair competition can take heart that the U.S. government is standing up against Big China Solar,” said Gordon Brinser, president of SolarWorld Industries America Inc. and leader of the Coalition for Solar Manufacturing (CASM). “Commerce’s careful measures could help thwart China’s illegal drive to control the solar market and supplant manufacturers and jobs in America, the very country that invented, pioneered and innovated solar to today’s mainstream viability.”
• Steve Ostrenga, CEO Helios Solar Works: “Commerce’s ruling in the SolarWorld case is a bellwether decision. It underscores the importance of domestic manufacturing to the U.S. economy and will help determine whether the country will be a global competitor in clean technologies or outsource them China. It is also critically important for thousands of U.S. workers.”

• Andrew Beebe, COO of Suntech: “These duties do not reflect the reality of a highly-competitive global solar industry. Suntech has consistently maintained a positive gross margin as revenues are higher than our cost of production. We will work closely with the Department of Commerce prior to their final decision to demonstrate why these duties are not justified by fact.”
• Sen. Sherrod Brown, D-Ohio: “The Commerce Department’s decision today shows that trade enforcement matters, and is an important step towards combating China’s multiple, massive, and illegal trade violations. It’s been proven that China isn’t competing in the clean-energy marketplace — it’s cheating, and its unfair solar trade practices have already resulted in the announced the loss of thousands of good-paying U.S. manufacturing jobs. I applaud the Commerce Department for working to hold China accountable for its unfair solar subsidies and dumping practices. If we want to have a solar manufacturing industry, we need to utilize trade enforcement tools to combat the massive export subsidies other countries provide. This decision will help establish a fair and level playing field for American manufacturers, including the many solar manufacturers in Northwest Ohio.”

The Fallout

Many in the industry have been fretting that a steep penalty on Chinese panels would stifle the rate at which solar has been growing in the American market. New tariffs, they say, have the potential to derail the downward costs that have made solar a more appealing option to investors. As a result, the industry could see significantly less growth in the years ahead. And that means fewer American jobs.

Melanie Hart and Kate Gordon of the Center for American Progress refuted that notion this week, arguing instead that not challenging legal practices sets up a scenario in which China’s leaders will dictate not only the price of solar panels that dominate the open market, but they will also choose which types of solar technologies their government will support. This, they say, could lead to stunted growth in both installations and innovation.

“[O]nce Chinese companies drive out their competition from the solar manufacturing sector, they will immediately start raising prices to increase their profits and start to wean off of government subsidies,” they wrote this week. “We are currently seeing a similar pricing pattern in the global rare earths market. China has around one-third of the world’s rare earth supplies but controls 90 percent of the global market, primarily because lax regulatory oversight enabled Chinese companies to mine cheaply and price everyone else out of the market.”

In an op-ed penned for the Boston Globe, Tom Gutierrez, CEO for New Hampshire-based GT Technologies, wrote that the trade dispute has done little to help build a stronger American solar market. All it has done, he said, is force Chinese manufacturers to find new ways to enter the U.S. with their low-cost panels.

“Many Chinese manufacturers are simply redirecting their flow of products through other countries to avoid the US-imposed barriers, or in some cases the location of their production, and in all likelihood they will continue to provide the global market with competitively-priced solar panels,” he wrote. “This action by the U.S. government merely forced Chinese companies to find new ways to innovate in order to compete. In all likelihood the Chinese will be just fine. In fact, we may be transforming domestic Chinese players into more formidable forces by encouraging their global diversification and expansion. But what about the U.S. solar industry?”

The debate has extended far beyond the solar industry and has become a political lightning rod that has shaped some unexpected alliances. For an industry that depends on liberal-leaning policy support, the free market principles touted by the Coalition for Affordable Solar Energy have generally played strongest in conservative circles. Democrats, meanwhile, are pushing a “get-tough-on-China” strategy that threatens to undermine the low-cost goals of much of the industry. Just this week, two Democrats — Sens. Sherrod Brown of Ohio and Charles Schumer of New York — introduced a bill aimed at China that would exclude all foreign-made solar panels from a 30-percent tax credit unless the modules passed a threshold of domestic manufacturing.

Article source: http://www.renewableenergyworld.com/rea/news/article/2012/05/31-percent-anti-dumping-tariffs-announced-for-chinese-solar-panels?cmpid=rss

Such manufacturing “support” policies are being implemented globally. For example, within South America, there are manufacturing facilities with capacities of 5-20 MW being developed in Brazil. In Argentina, national and state funds are being made available in an attempt to create a domestic PV value-chain to satisfy up to 0.5 GW of installations over the next decade. In the Caribbean region, several islands have proposed tax policies to stimulate domestic PV manufacturing. For example, project developers in Jamaica are required to invest in manufacturing facilities as a prerequisite to securing PV project activities.

Across Africa, countries such as Algeria, Nigeria, and Tunisia are utilizing state-owned energy firms to develop manufacturing facilities to serve domestic electrification projects and regional off-grid system demand. Ethiopia and Kenya also have domestic module manufacturing facilities that are owned by partnership ventures between foreign and domestic companies. While some of these facilities are currently operating at low capacity utilization levels, they are producing PV modules, albeit courtesy of state support. Some recently-installed manufacturing lines are being configured to serve the growing demand for off-grid systems, from small to large-scale.

However, each of these domestic firms must still compete with large-scale international manufacturers. Therefore, it remains somewhat unclear if they can survive in the absence of state funding or when multinational firms start to expand into what were previously regarded as niche PV markets.

Domestic module manufacturing is also prevalent in more developed countries, in particular Canada. In Ontario, the Green Energy Act has enabled the creation of a robust domestic PV supply chain in just three years. In fact, the initiative has proved so popular that some Ontario-based PV manufacturers now find themselves at a competitive disadvantage, even within their own local market. By the middle of 2012, there will be over five times the amount of module capacity required to meet projected demand.

Another knock-on effect of the recent surge in small-scale domestic PV module manufacturing has been the creation of a new addressable market for PV equipment suppliers. Indeed, at a time when PV equipment spending is going through a prolonged downturn, any new market opportunity can be viewed as a positive development. Today, most PV module equipment suppliers are actively pursuing small-scale module fab builds to compensate for the absence of turn-key module line orders from countries such as Spain and Italy.

It remains likely that some form of local module manufacturing will be installed within all regions exhibiting PV market growth. However, with vertically-integrated multinational firms now aggressively targeting emerging PV regions, there is a distinct possibility that small-scale module manufacturing will only survive within niche markets that offer the security of local subsidies or domestic incentives.

Ultimately, all manufacturing must follow the global industry’s declining module ASP trajectory, with production costs at any stage of the value-chain being low enough to provide positive operating margins. With small-scale manufacturers dependent on upstream supply of c-Si cells, their ability to control costs will be challenged by the GW-scale vertically-integrated fabs of tier 1 industry-leaders. Thus, domestic incentives will provide a limited window of opportunity for small-scale manufacturers to gain a foothold in their local markets, potentially by partnering with downstream project developers to offer a value-added proposition.

Michael is an analyst for Solarbuzz. He covers primary research and analysis concerning the photovoltaic industry.

This article was originally published at SolarBuzz Analyst Blog and was republished with permission.

Image: Monika23 via Shutterstock

Article source: http://www.renewableenergyworld.com/rea/news/article/2012/05/domestic-module-manufacturing-pv-globalization-or-political-vote-seeking?cmpid=rss

A recent #SolarChat, a bi-monthly Twitter chat I host, turned this perception on its head. With guest panelists Carter Lavin, business development manager of the Solar Marketing Group, and Jessica F. Lillian, editor of Solar Industry Magazine, we explored the most effective media outreach tactics, shared tips to get the attention of journalists and bloggers, and gained incredible insight about the state of solar in the mainstream media.

Thinking Local

It became apparent that solar supporters have a strong voice. Although we’re not (yet) getting headlines on the front page of the New York Times, smaller local and regional media outlets are, in fact, open to sharing solar stories. Of course, we have to pitch them in the right way with a catchy headline, strong lead, and slant toward human interest.

Several participants in this recent #SolarChat discussion noted that local reporters are always thrilled to receive “feel-good” solar stories. We should not underestimate the power of the local media when it comes to spreading the word about solar. Many small voices create a strong force. Just look at the power bloggers today; many are as well respected and some more widely read than traditional journalists. The power of “citizen journalism” is sweeping the world across every industry, and the solar industry is no different. It’s time to take advantage of it.

Focus on the Positive

Let’s face it: The solar industry isn’t necessarily the mainstream media’s darling. That’s not surprising, since it’s an emerging industry going up against strong lobbyists from the coal and oil industries that influence the larger news outlets. Money talks — ad dollars are the language of TV and print journalism. Many mainstream media outlets have given ample coverage to the few “solar failures,” but solar advocates know that’s not where the real solar story lies. 

What can we do? Of course, we can and should counter solar misinformation by writing letters to the editor with facts and data — the truth is on our side!

But we’re big enough to take a pro-active stance, as well. It’s time to switch out of the reactive mindset, merely countering the negative stories, and go after the local media that’s within our reach and eager to hear the truth about solar. Solar is helping lower-income families and school districts afford the electricity they need. Solar energy is saving middle-class Americans hundreds on their electric bills. Solar power is creating jobs, and it’s creating a brighter future for us all.

Together, we can make a huge difference. The momentum #SolarChat has gained in less than a year is a huge example of many “small” voices (you can’t get much smaller than 140 characters) impacting hundreds of thousands of followers.

What if every solar installer and manufacturer aimed to have a story placed in their local paper and on their Patch site? What if everyone in the industry connected with just one lifestyle blogger with a large mainstream audience and placed a guest post there? What if every solar professional took the opportunity to speak at a local school about the benefits of solar and career opportunities in renewable energy?

The viral effect of these placements and appearances can rival anything big coal and oil lobbyists can throw out there; we can debunk myths and spread “solar stories” that will inspire consumers to action. 

Harnessing the power of the local media to spread the word about solar is similar to installing a solar PV array on your own home to harness the sun’s power for electricity. Why pay for something (whether it’s publicity or electricity) that you can get for free when you know how?

So, tell us: How will you take action in the media?

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Article source: http://www.renewableenergyworld.com/rea/news/article/2012/05/can-the-voice-of-solar-shine-brighter?cmpid=rss

Secretary of Defense Leon Panetta asserts that all of these initiatives are for one purpose only. “By changing the DoD energy posture, America will have a military that is better able to project and sustain forces around the world to meet any challenges to the nation’s security and interests of the American people.”

Through my work with Environmental Entrepreneurs, I’ve had the privilege to meet with many of the Pentagon’s energy leaders executing this clean-energy mandate, and also to work alongside a number of retired military officers to advance these initiatives. I can say without reservation that these are the best allies the clean-technology sector could have.

DoD brings formidable assets to this mission. Armed services installations encompass more than 28 million acres of land. DoD plans to install at least 3 GW of renewable-power generation on these bases — the single largest commitment to clean energy in the U.S. It manages more than 2.2 billion square feet of building space for which it is seeking to greatly improve energy and resource efficiency performance. As a massive consumer of fuel (using nearly 2 percent of the nation’s total), and unwilling to sustain the enormous budgetary burden of volatile fuel prices, the military is seeking alternative transportation technologies for its vehicles on bases, as well as its aircraft, ships, and combat vehicles. It is evaluating every aspect of its operations, from energy demand in base housing to the batteries that soldiers carry to battle, and pinpointing where next-generation technologies can improve the nation’s security.

And the military is prepared to invest in these technologies. The Pentagon is requesting $2 billion in fiscal year 2013 for energy improvements to DoD installations and expeditionary operations, with a view to both short and long term results. In many cases these investments will produce huge savings on energy costs.

In the absence of a cogent national energy policy, the military’s actions add up to a national demand signal like no other in the United States today. Because the military is both a strategic (and relatively patient) investor and a huge customer for new energy technologies, DoD’s energy mandates are providing an innovation pull function that holds massive promise for economic growth and job generation in the private sector.

Perhaps most important of all, the military is creating a roadmap for American civilian society, as each vulnerability that the Pentagon has identified with regard to energy security applies at least as much to the general population. From undependable fuel supplies and prices to vulnerable power grids and inefficiencies in our homes and businesses, these liabilities pose an insidious threat to the resilience and strength of our economy and reduce our ability to compete in global markets.

And yet, some in Congress are prepared to sacrifice national and economic security for a partisan agenda. With a visceral disdain for clean energy, or perhaps with an overly robust relationship with the fossil-fuel industries, they are challenging the motives behind the Pentagon’s clean energy initiatives and threatening to withhold funding to carry them out.

Now is the time to speak out in defense of DoD’s clean energy initiatives. The annual National Defense Authorization Act is currently being hammered out in both houses of Congress. The House Armed Services Committee has already passed their version of the bill which includes provisions to prohibit the military from investing in and deploying low carbon renewable fuels. The Senate Armed Services Committee will take up the bill on May 22nd. Whether you’re an employee, a business owner, or an investor in the clean-energy sector, call your representatives in Congress, especially those who sit on the Armed Services Committees, and tell them to support DOD’s clean energy initiatives. Tell them that those initiatives will help you grow your business and create jobs. They need to know you are watching what they do on this and will hold them accountable. Your voice will have more impact than you imagine.

Civilians from across the political spectrum should step up to defend the military’s clean-energy agenda. Uncle Sam really does need you.

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Article source: http://www.renewableenergyworld.com/rea/news/article/2012/05/mission-critical-a-clean-energy-call-to-arms?cmpid=rss