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Small-scale solar joins the power grid
Chinese governments are creating policies that support solar energy in order to rescue domestic solar power enterprises, which have suffered big losses from anti-dumping and anti-subsidy measures taken by the United States and the European Union.

Brighter days for solar power

New policies support ailing solar industry

Appeals

Dilemma

Solar power is used on a small scale domestically, with most domestic solar products being exported to the EU and the US. 

Over 70 percent of Chinese solar exports go to the EU market, which is the largest solar market worldwide and had 51,000 megawatts of installed solar generating capacity in 2011. Exports to the EU are worth over $20 billion per year, and account for over 400,000 jobs in the Chinese PV industry, according to the Ministry of Commerce (MOFCOM).

Reasons

High cost: the cost of solar power is much higher than that of other polluting energy sources. 

Overcapacity: domestic solar PV industry is also suffering from the problem of overcapacity mainly caused by a pursuit of short-term gains.

Anti-dumping Challenges

Domestic solar power generators suffered a tough time recently following anti-dumping and anti-subsidy moves from the US and the EU.

Recent cases

October,2012	The US Commerce Department announced that it will impose anti-dumping tariffs on Chinese solar product exporters, with rates from 18.32 percent to 249.96 percent, and anti-subsidy tariffs with rates from 14.78 to 15.97 percent.
September,2012	EU started an investigation on China's solar product manufacturers, accusing them of dumping solar panels.
July,2012	Solarworld AG, Germany's biggest maker of solar panels, filed a complaint to the EC, asking for an anti-dumping probe against China's PV products.
May,2012	The US Department of Commerce announced a preliminary decision to impose anti-dumping duties of as much as 250 percent on solar products imported from China.

Solutions

Outward	Inward
Cooperation China and the EU in Brussels signed a Memorandum of Understanding (MOU) to increase cooperation between the European Commission's competition department and China's antitrust authorities.	Country: Free connection to national grid China will allow distributed photovoltaic solar power producers to be connected to the national grid free of charge in a bid to support the renewable-energy industry.
Companies protest A national industry organization which represents 500 Chinese energy enterprises issued a statement at a press conference opposing the EU's anti-dumping complaint against the country's solar panel products.	Companies: Reduce production, cut operational costs A large solar panel maker by capacity, said it will reduce production and cut operational costs to weather the downturn in the photovoltaic sector.
Countervailing investigations The ministry announced on July 20 that it would launch anti-dumping and countervailing investigations into polysilicon imports from the US and anti-dumping investigations into polysilicon products imported from South Korea.	Local government: Secured support Each province needs to report three plans at most with the total installed capacity not exceeding 500,000 kilowatts.
Called on high-level dialogues Major Chinese solar companies called on the Chinese government to enter high-level dialogues with the EU to block it from initiating the investigation.	National Energy Administration:  Five-Year Plan During the 12th Five-Year Plan period (2011-15), China will install distributed power photovoltaic generation systems providing 10 million kilowatts of installed power capacity.

Comments

Liang Tian, public relations director of Yingli Green Energy Holdings Co, another leading domestic solar power company:
The situation of solar power generators waiting for government subsidies will not change in the short term due to the higher cost, so they "need to improve technologies to reduce solar energy cost as a long-term strategy."

"China's PV enterprises have mastered advanced technologies to cut costs as much as possible, which has incurred complaints from some foreign partners, which are unfair."

Zeng Shaojun, secretary-general of the China New Energy Chamber of Commerce (CNECC):
"Some enterprises are thinking about setting up plants in the EU and the US to avoid anti-dumping measures…In that condition, China's solar industry will gradually move out of the country, which will be a big loss to the domestic economy."

Gao Hongling, deputy secretary-general of the China Photovoltaic Industry Alliance (CPIA):
"While we will actively respond to the case, we will also reflect on the industry's problems of overcapacity, which cannot be absorbed by the international market. The case may offer an opportunity for consolidation of the domestic solar industry and expansion of solar technology applications in China."

Xinhua: US tariffs on Chinese solar panels benefit neither side
The move would make it extremely hard for the two companies to enter the US market, despite the fact that they are operating normally in over 140 countries. The series of protectionist moves against Chinese companies or products have threatened the China-US trade relations and may lead to a lose-lose result for both sides.

China Economic Herald: Local firms need new path overseas
Chinese firms must to offer products that feature advanced technologies. It is much harder for politicians and lawmakers to slap punitive tariffs on innovative products valued by the market.