S&P warns over-reliance on Chinese imports, a global module glut and falling prices are challenging efforts to build a domestic supply chain
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The following is a quick overview of the present situation in the U.S., the EU and India
United StatesBack in , the U.S. International Trade Commission imposed anti-dumping tariffs on solar modules made in China. Before that, the anti-dumping duties were not applied to solar modules made with cells produced out of China. Since June , however, these products were also required to be subject to anti-dumping charges. Prices differ by producer and range from 18.56% to 35.21%.
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The EU launched an investigation in late . Ultimately, anti-dumping duties were not imposed on Chinese-made solar panels. Instead, the EU and China agreed to set minimum price levels for solar modules. European importers therefore do not have to worry about anti-dumping duties on imported solar modules.
Europe liberalizes Chinese solar panel importsThe import of Chinese solar panels into Europe, which had been regulated by surcharges since , is now free. As of September 4, there is no longer a mechanism to protect European manufacturers from falling Chinese PV prices.
European solar panel manufacturers have to step up their creativity to survive. With the lifting of all restrictions on Chinese solar imports, the European Commission has presented serious obstacles in their path. But it saw fit to protect itself back in by taxing solar modules from the Middle Kingdom. Devices imported below the floor price of 0.56 per Watt may therefore be subject to a tax of up to 64.9%.
Europe, an outlet for excess Chinese production?The Commission considered that the end of these restrictions would be in the interest of the European Union's renewable energy development objectives. It would also bring import prices in line with world market prices.
As a result, the fill has been open since September 4. China, which has decided to limit ground-mounted solar installations, has a production surplus of 30 gigawatts. The flow of cheap panels, which cannot be sold in the United States due to protectionist regulations and will soon no longer be available in India, could be directed to Europe.
European manufacturers, represented by the European association Prosun, say the decision will cause "severe damage" to the industry, given its modest output of about 7 gigawatts. Their calls for an extension of import tariffs have gone unheeded. Some companies are considering filing a complaint with the European Court of Justice.
IndiaAn anti-dumping duty is levied on solar modules imported from China, Malaysia and the United States. The tariff rate for solar panels manufactured in China is 100% to 110%.
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