Topic: Investment | Installation art

As fallout continues from the collapse of solar manufacturer Solyndra, the U.S. solar industry is divided over a related challenge that threatens its future: China's subsidies. The split was evident Tuesday at an International Trade Commission hearing in Washington. Solar manufacturers that filed a petition Oct. 19 against China's subsidies said the country is illegally dumping its silicon solar products in the U.S. market to bankrupt competitors. Other solar companies argued the resulting lower panel prices benefit all consumers. Call it the battle of the solar coalitions. "There's a schism," says Ben Santarris of Oregon-based SolarWorld Industries America Inc., the largest U.S. maker of silicon solar cells and panels and a subsidiary of Germany-based SolarWorld. FOLLOW: Green House on Twitter His company and six unnamed U.S. solar manufacturers filed the petition with the ITC and the Department of Commerce on behalf of their Coalition for American Solar Manufacturing, asking the Obama administration to impose duties on imports of solar panels from China. "What's happened here is a price collapse that's devastated ... domestic manufacturing in the U.S. market," Santarris says, adding U.S. manufacturers have had to lay off workers. "It's not good for anyone long term." U.S. energy officials say China spent more than $30 billion in 2010 alone in subsidies for its solar industry. Last week, when asked about the trade petition, President Obama said China has "questionable competitive practices" on clean energy and his administration has fought "these kinds of dumping activities." Other solar companies say China's investment has benefited U.S. customers because panel prices are now 30% lower than in January 2010. On Tuesday, to counter the trade petition, they launched the rival Coalition for Affordable Solar Energy or (CASE.) Members include China-based SunTech as well as Recurrent Energy, Solar City, SolarFirst, Inc., Sungevity, SunRun and Westinghouse Solar. "The vast majority of the existing 100,000 jobs in the solar industry are in sales, marketing, design, installation and maintenance. These jobs depend on affordably priced solar panels and companies would have to lay off workers if panel prices rose as a result of this petition," Jigar Shah, CASE's co-founder, said in a statement. Without the price drop in solar technology, CASE members argue the U.S. solar industry might not be the fastest-growing energy sector in the U.S. economy. The industry grew a record 67% last year, when enough solar capacity was added to power 200,000 homes, according to the Solar Energy Industries Association (SEIA), an industry group. "Despite the remarkable progress, the U.S. still represents only 5%-10% of the global solar marketplace. Placing protectionist barriers against more efficient and affordable solar cells -- whatever their origin -- discourages innovation and investment," Shah added. SEIA, which represents foreign and domestic solar companies, has not taken a position on the trade petition. "It's premature to determine what the outcome of this will be," says its vice president, Tom Kimbis. "The solar industry is developing rapidly and is at a pretty important inflection point," Kimbis says in an interview. As it matures and faces fierce competition, he says, "there will be some winners and some losers."

[Read the rest of this article...]