Over the last few weeks, a lot of attention in the solar world has been on CASM (aka the Coalition of American Solar Manufacturers). This group, led by SolarWorld and six other anonymous companies, is employing a dangerous strategy by using a lawsuit to slow down the amount solar being imported from China. We at Southern Energy Management do not support this action. In fact, SEM has joined a growing list of more than 100 industry leaders as part of the newly-formed Coalition for Affordable Solar Energy (CASE), whose sole purpose is to promote healthy, positive growth nationwide without PV protectionism through tariffs.
At first glance, this might seem counterintuitive: how can we promote “Made in America” products but reject the idea of a lawsuit that claims to level the playing field? The simple answer is we think this tactic will increase costs across the board and cripple the momentum that we’ve all worked so hard to build. It’s almost the exact opposite of an incentive, and there are clearly better ways to support domestic production!
Instead of dividing the industry and spawning distrust between Chinese and American solar manufacturers, CASE supports incentivizing local sources. I actually blogged about this very issue almost nine months ago — long before any of us heard about the CASM lawsuit. This would help the US better compete with China without tripping up the trend towards lower prices. I said then, and I stand by it now: setting up domestically-driven incentive programs could be a game-changer for the industry here in America.
The truth is that a strong manufacturing sector is vital for the success of the American solar industry. It’s vital for our goals of making an impact on carbon emissions for the simple fact that shipping modules from China uses a lot more energy than shipping, for example, a batch from our friends at Stion in Mississippi.
SEM installed this BAA-compliant system at Naval Air Station Jacksonville in Florida using Suniva modules.
Right now, the situation isn’t even quite as dire as CASM makes it sound. There may be a glut of low-cost panels coming into the US, but according to a Solar Energy Industries Association (SEIA) study we were still a net-exporter in China to the tune of $247 million to $540 million just one year ago. Those are big numbers and highlight a trade relationship that’s certainly not worth undermining.
Modern solar power was created here in the United States, but we’re getting outpaced. We can get back on top, but it shouldn’t be artificially done at the expense of Chinese manufacturers who have helped us get to where we are. The main reason China is so far ahead of the game is because their government recognized the incredible opportunity in sustainable energy and seized it — now it’s time for our government to do the same.
If you’re in the solar industry, I urge you to stand with SEM by signing your company up for CASE, too. We realize this is a sticky situation, and it can get complicated, but we’re willing to fight for the health of this industry. If you have any questions, leave a comment and I’ll try to address them.
Bob Kingery is the CEO and co-founder of Southern Energy Management. Read more about him here.
Tags: buy american, PV Protectionism
Well said. Protectionism isn’t going to make solar or the US more competitive. It would only make SolarWorld more competitive, at our expense.