Solar industry face export challenges

Some Chinese experts said the moves were mere posturing.

"The trade war is bad for everyone no matter whether it's foreign countries or China," said Li Junfeng, deputy director at the Energy Research Institute under the National Development and Reform Commission.

He said the trade war acts against the principles of the solar industry, which aims to reduce the cost of renewable energy for sustainable development in the long term.

The Coalition for Affordable Solar Energy, an organization of American solar companies representing about 98 percent of the US solar industry jobs, believes free trade and industry competition are critical to making solar electricity affordable for everyone.

After the US announced the ruling on imported Chinese solar products, the coalition said it was concerned about the growing global trade war, which will hurt American solar industry jobs, growth and customers.

"On behalf of the 97 percent to 98 percent of the US solar industry that fought against SolarWorld, we are all looking forward to ending this distraction and returning to our everyday focus of creating jobs and lowering renewable energy costs," said Jigar Shah, president of CASE.

China imports large quantities of polysilicon and equipment for PV solar production from the US every year, which means it will hurt US manufacturers if Chinese companies suffer from the punitive tariffs and experience a reduction in equipment demand, said Gao Hongling, secretary-general of the China Photovoltaic Industry Alliance.

The way out

The Chinese government has made efforts to help the solar industry by expanding the domestic application of solar power plants and encouraging the distribution of solar power generation.

Starting in November, China's largest utility company State Grid began to provide a free service that allows PV solar power producers to connect to the national grid, a move considered "very encouraging" by industry experts.

"The biggest obstacle for China's new energy industry is the on-grid problem. The new policy will solve it to a certain extent," said Meng Xian'gan, deputy director of the China Renewable Energy Society.

According to the new policy, the State Grid branches at city level will have the rights to approve distributed solar power plant projects with installed capacities of less than 10,000 kilowatts each to be connected to the grid. Distributed solar power plants are self-supporting small scale units that have the ability to sell excess capacity to the grid.

Meng said the new plan shows the government's determination to support the domestic solar industry. It was echoed by the State Council's official statement of supporting distributed power generation on Dec 19.

Distributed solar power generation plays a major role compared with the integrated power generation in developed countries including most European countries, the US and Japan, according to Wang Sicheng, a senior researcher at the Energy Research Institute.

He said the cost of electricity transmission in western China, for example, is high because of the long distances involved. Distributed power plants therefore have advantages by saving costs.