Supporting Solar Power

Commentary By Ron Beasley

I think there is a place for the government to support solar power but supporting supply, as in the case of Solyndra. is not the way to do it.  The government should be encouraging demand.  The most recent Energy Department loan guarantees are a step in the right direction.

• DOE said Friday it finalized a $1.24 billion loan guarantee to SunPower Corp. to help finance construction of a California photovoltaic solar generating facility.


• In addition, the department finalized a separate $646 million loan guarantee for First Solar to finance a thin film photovoltaic solar generation facility in California.


• DOE also finalized $1.46 billion in partial loan guarantees for two California solar photovoltaic generation plants sponsored by First Solar.


• The department approved a $1.4 billion partial loan guarantee for Project Amp, which aims to generate 752 megawatts worth of solar panels on 750 existing rooftops. The project is managed by Prologis.


• Lastly, DOE finalized $1.46 billion in partial loan guarantees for two California solar photovoltaic generation plants. The lead investor on the project is Goldman Sachs Lending Partners.

But the US solar industry must be protected from dumping by China.

SolarWorld reportedly preparing complaint accusing China of unfair solar trade

SolarWorld, the German company that employs 1,000 at a plant in Hillsboro, is reportedly teaming with other manufacturers to file a trade complaint accusing China of swamping the U.S. market with unfairly subsidized solar cells.

SolarWorld spokesman Ben Santarris said Thursday that the company was consulting with federal officials on how to hold China accountable for "its attempt, yet again, to destroy another U.S. industry." He added, "We haven't announced anything further."

Santarris said China unfairly supports its solar industry with everything from government grants to loan guarantees to subsidized raw material, land, water and electricity.

"We can compete with any company from any country in the world on costs or on any other basis," Santarris said. "But what we cannot do is compete with the Communist Party of China."

The problem is Federal agencies could take months or years to make a decision.

The U.S. Commerce Department must act within a month after receiving a trade complaint. If the agency finds the case sufficient, the U.S. International Trade Commission holds a hearing on whether the industry is being harmed by unfair competition.

If so, the Commerce Department investigates to determine the amount of damage, and sets tariff rates. These steps can take a year to 18 months.

But the Obama administration can do it unilaterally.

Low-cost Chinese imports are surging into the United States, forcing American producers to slash prices. Imports of Chinese panels increased more than 1,500 percent from 2006 to 2010, according to U.S. Sen. Ron Wyden, D-Ore.

Wyden wrote to President Barack Obama on Sept. 8, calling on the administration to protect U.S. producers from unfair competition. He noted that Obama slapped duties on Chinese-made tires in 2009 without waiting for the lengthy U.S. agency review.

"Without the leadership of your administration," Wyden wrote concerning solar manufacturing, "this industry may disappear, leaving behind additional workers without employment. Letting that happen is unacceptable."

So once again the ball is in Obama's court.  What will he do?  Increasing demand only helps the US economy if the solar panels are produced in the United States.