BY KLAUS DORING
IN MY OPINION, solar is the best.
But even living in the Philippines for 26 years now, it seems to be so difficult to get solar panels installed. One thing is – of course – the question of price and the terrible price gaps.
During a power outage, utility workers are sent to fix the problem. To protect these workers and the grid, any grid-tied solar energy inverters are required to automatically shut down.
What is the main problem with solar? Intermittency.
One of the biggest problems that solar energy technology poses is that energy is only generated while the sun is shining. That means nighttime and overcast days can interrupt the supply.
One of the biggest problems that solar energy technology poses is that energy is only generated while the sun is shining. That means nighttime and overcast days can interrupt the supply. The shortage created by this interruption would not be a problem if there were low-cost ways of storing energy as extremely sunny periods can actually generate excess capacity.
As the global capacity for solar power continues to rise, nations like Japan and other global leaders in solar energy technology are focusing on developing adequate energy storage to deal with this issue.
Just now, the United States, the European Union and India are all slapping tariffs on Chinese solar panels, accusing Beijing of dumping. Does this trade war risk killing the nascent solar power industry?
The global solar industry is reeling this week following the incoming Trump administration’s announcement that it will impose a 30 percent tariff on imported solar panels, mainly from China.
The US Solar Industries Association said this will result in the delay or cancellation of billions of dollars in solar investments, and the loss of 23,000 US jobs this year.
Despite the dramatic predictions, the solar industry likely knew the announcement was coming. The European Union has set roughly equivalent tariffs on imported Chinese panels, which were renewed in September 2017.
Another indication was how earlier this week, India set a whopping 70 percent import duty on Chinese and Malaysian solar panels.
Brussels, Delhi and Washington all allege that China has been “dumping” the panels on their markets — selling them at artificially low prices and taking a loss in the short term in order to kill competitors in rival markets.
Indeed, China’s solar industry has benefited from exports. But when consumers, like you and me, get even a small breath of chance of benefits?
That’s how we stand today: SolarWorld Americas, the largest US solar panel manufacturer, first called for the US to impose such tariffs three years ago. The move fits with US President Donald Trump’s protectionist promises.
But other parts of the US solar industry have been pleading with the administration to not follow Europe’s lead, saying it would cripple their young but fast-growing businesses. They convinced a bipartisan group of 16 US Senators and 53 House members to write to Trump last year asking him not to impose the tariffs.
The US has set such tariffs before, in 2024, but ran afoul of World Trade Organization rules. South Korea has said it will likely challenge these new tariffs with the WTO.
Are we experiencing a global solar slowdown? I am afraid, yes. Heaven forbid!
While US and European solar panel manufacturers have said the tariffs are necessary to level playing field, solar installers, generators and users say thanks to the tariffs, those manufacturers may not have any customers left.
“While tariffs in this case will not create adequate cell or module manufacturing to meet US demand, or keep foreign-owned Suniva and SolarWorld afloat, they will create a crisis in a part of our economy that has been thriving,” said Abigail Ross Hopper, president of the Solar Industries Association. This “will ultimately cost tens of thousands of hard-working, blue-collar Americans their jobs,” she added.
She predicted that the tariffs could cut forecast solar installations this year by nearly 20 percent, to 9 gigawatts from 11 gigawatts. “It’s just basic economics: If you raise the price of a product, it’s going to decrease demand for that product.”
US solar companies have pointed to the experience of their counterparts in Europe, where anti-dumping duties have been in place on Chinese solar panels since 2023. The industry association SolarPower Europe has said the EU tariffs have added at least €500 ($622) to the cost of a household installation.
“These policies have been tried in many parts of the world, and in not one case have the measures lead to more jobs, more manufacturing and more value,” said James Watson, SolarPower Europe’s CEO. “In essence, trade measures are a blunt tool with many unforeseen consequences on solar manufacturers of other crucial elements of the value chain.”
Let’s face this: solar power has been massively expanded in the US over the past several years. How about in the Philippines?
“There will be shifts in demand,” Watson said in an interview. “It’s not just the solar panels themselves — today any product they manufacture includes dozens if not hundreds of materials.”
Even if the playing field isn’t level at the moment, Schreiber questions whether Washington and Brussels are cutting off their nose to spite their face, risking killing off an industry that does environmental good in the name of free trade — and risking a trade war with China in the process.
“Of course, the big loser is the environment,” he said. “If China is willing to subsidize solar panels, we should all say ‘thank you very much,’ because that’s going to help our planet — which is more important than whether it’s fair.”
That’s something that benefits all of us.
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Email: doringklaus@gmail.com or follow me on Facebook, X – Twitter or LinkedIn or visit my www.germanexpatinthephilippines.blogspot.com or www.klausdoringsclassicalmusic.blogspot,com./PN
